MCB held its analyst briefing yesterday to discuss CY09 results as well as future outlook. From a strategic perspective, we believe MCB is attempting to extend its reach as a full-service bank but not by compromising on traditional strengths (low cost deposit base). Key takeaways include a renewed focus on MCB’s core value proposition – convenience/transactional banking. In part, this is to be achieved via greater use of Alternative Delivery Channels, particularly mobile banking which has the capacity to 1) add to the bank’s fee income and 2) lead to sticky zero-cost deposits. At current levels, we have an Accumulate stance on MCB based on our target price (bonus-adjusted) of PkR221.0/share. While we believe the market has been quick to price in MCB’s positives, a beta of 1.3 implies the scrip has the capacity to outperform if the bull run continues.