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LETTER OF UNDERTAKING
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EXECUTIVE SUMMARY Virtual University of Pakistan had assigned me a task to do 6-8 weeks internship in any recognized institution. I have decided to take up Askari Commercial Bank Limited for internship because its competing bank now a day and gives a good training to the internee. So in order to learn more this was my choice. This report is about my internship that I have undergone at Askari Commercial Bank Limited Kamra Branch from 16th May 2011 to 27th June.2011.During my internship I am able to learn practice aspect of business, and get good working experience. On the very first day of my internship I reported to Human Resource Manager/ Operation Manager Mr.Sajid .Hr gave me small introduction of the bank and introduced me to the staff of the bank. Every internee is rotated among the banks departments and so was I. This rotation is done in order to have general concept regarding banks functions, operations and policies. In this rotation the stay in department is usually a week. I have learned more about the Account Opening department and have given below the caption of activities I was involve in during the period of six weeks.
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BRIEF INTRODUCTION OF THE ORGANIZATIONS BUSINESS SECTOR Askari Commercial Bank Limited (ACBL) works as a Unit of Army Welfare Trust was established for the Welfare of Army Officials. The office of Army Welfare Trust is situated at AWT Plaza, Rawalpindi. AWT offers the AWT Saving Scheme to the army officials only. AWT has its units as under: 1. Askari Associates.
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Overall View of Organization Brief History Askari Bank Limited is a Pakistan-based commercial bank engaged in the provision of general banking services. Its segments include corporate financing, which includes corporate and investment banking activities; trading and sales, which includes the Bank's treasury and money market activities; retail banking, which provides services to small borrowers and includes loans; commercial banking, which provides services related to project finance, trade finance, lending, bills of exchange and deposits from corporate customers; payment
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Business Volume
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Product lines Askari commercial bank offers many products like Consumer banking Islamic banking Agriculture finance solution a corporate investment etc Consumer banking product A) Askari finance loan B) Investment product Islamic banking services
Personal Finance Mortgage Finance Business Finance Smart Cash Mahana Bachat Account Roshan Mustaqbil Deposit Deposit Multiplier Account Value Plus Deposits Rupee Traveler Cheques ASKCARD (Askari Debit Card) Internet Banking Service Electronic Bill Payment Services Cash Management Services Investment Certificates
Agriculture finance solution Kissan Ever Green Finance Kissan Tractor Finance Kissan Aabpashi Finance Kissan Livestock Development Finance Kissan Farm Mechanization Finance Kissan Transport Finance Corporate & Investment Banking Corporate Banking Division Term Loans Fund Transfers / Remittances Investment Banking Division Project Finance Islamic Finance Askari Auto loans)
According to the need and ever changing demands of customers Askari Bank has introduce the Auto loans services to their customers to meet their desires. The tenor of these loans is based on the amount that customer wants. Askari I-Net Banking
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Askari bank offer banking through Internet. Askari Bank is the first bank in Pakistan to provide such service to its valued customers which is absolutely free funds transfer statement of accounts, free payment of utility bills, Balance enquiry, change of password, Payment of School fee. Askari Master Card
It has always been our endeavor to introduce products and services tailor made to the requirements of our valued customers. Now your utility bills through------------
ASK CARD. Askari bank ATMS National wide. Internet Banking services.
Askari cash management services aimed to efficiently manage the accounts receivable portfolio of medium and large corporate entities. While these services helps the corporate entities to improve their liquidity, due to our well-diversified branch network. The service primarily aims at providing; clearing, collection and cash transfer facility to corporate under one resource, which will handle to process through the branches and provide adequate reporting to the corporate clients various aspects of their accounts received portfolio, every month. Askari Travelers Cheques
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Askari Bank Limited always remained at fore front in introducing innovative and unique products in banking sector. Our financial instruments provide greater financial freedom and security in an unmatched way to ou7r-valued customers. Askari Bank offers you its Rupee Traveler Cheques eliminating all financial risks while traveling. So avoid risk of carring cash through Askari Banks Rupee Traveler Cheques. ASK CARD (debit card)
Askari is committed to provide you innovation and competitive solutions to your banking needs in a more efficient and personalized manner. Your bank enjoys a strategic competitive advantage over all domestic players by virtual of its leadership, large network and technological advancement. In line with our tradition of innovation.Askari Bank takes pride in announcing launch of Askari Banks Debit Card. Askari Banks (Home loans)
Askari Bank has made the realization of your dream to have a house of your very own possible. Whether you plan to build a house, tailor made to your requirements or buy a constructed house, Askari mortgage finance enables you to pursue your goal without any problems. Owning a house for oneself still remains an exclusive dream for many. Askari bank has made the realization for your dream to have a house, tailor made to your requirement or buy a constructed house. Askari Banks Personal Financing
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Askari Bank Personal Financing makes sure that you get the most out of your loan. No matter what your need is, Askari Bank has more ways to serve you then ever before. With unmatched financing features in term of loan amount, payback period and most affordable monthly installments. SMART CASH
Askari Bank Investment Certificates not only provide the added security, investment and monthly return to the customers. These certificates are negotiable and can be transferred to third party. Investment certificate can be issued for a period of 3 months and profit is payable on monthly basis through pre-printed tear off coupon. Askari Kissan
Due to diverse geographical and climatic conditions the country has tremendous potential for growth and development in agriculture. However adequate and timely financial assistance to the farmers will improve production potential of agriculture sector in the country. The modern concept of agricultural credit envisages establishment of an efficient institution credit system to save as a package of credit, supplies and knowledge for the overall strength of the farmers who at the present suffer from the low productivity and financial insecurity. A successful credit evaluation system, therefore should have the basic ingredients to provide adequate amount at the right time and in the right form to help farmers in making a productive use of loan funds.
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TRAINING PROGRAM They have assigned me the following task during my internship OPENING THE ACCOUNT OF CUSTOMERS They assigned me the task of opening the account of the customers Procedure 1) First the customer has to fill the account opening form in which he had to give following information. a) b) c) d) e) f) g) h) i) j) k) l) m) n) o) p) Customer name CNIC No CNIC expiry date Mothers name Family name Family no Date of birth Qualification Profession Source of income Monthly income Marital Status No.of Dependents Mobile no House status Next of Kin; Name etc
After filling the form he had to give the copy of NIC card and also submit Rs 1000
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I also cancel the chequebook of those persons whose chequebooks is there for more thn 60 days I also maintain the specimen signature cards.
RATIO ANALYSIS
Working Capital Year 2008 38,130,862 Year 2009 41,360,576 Year 2010 2,222,689
Times Interest Earned Year 2008 1.047 Times Year 2009 1.1182 Times Year 2010 1.0696 Times
Debt Ratio Year 2008 0.9367 Times Year 2009 0.9410 Times Year 2010 0.9490 Times
Debt/Equity Ratio Year 2008 15.9759 Times Year 2009 18.1830 Times Year 2010 20.1585 Times
Debt to Tangible Net worth Ratio Year 2008 14.848 Times Year 2009 16.007 Times Year 2010 18.700 Times
Total Capitalization Ratio Year 2008 0.8246503 Times Year 2009 0.844463084 Times Year 2010 0.860908018 Times
DuPont Return on Assets Year 2008 0.2013584927% Year 2009 0.4242718266% Year 2010 0.2920962575%
Operating Income Margin Year 2008 60.612% Year 2009 67.182% Year 2010 68.615%
Return on Operating Assets Year 2008 5.6195418% Year 2009 8.5851121% Year 2010 11.866666%
Return on Total Equity Year 2008 3.434 % Year 2009 8.197 % Year 2010 6.204 %
Gross Profit Margin Year 2008 42.12% Year 2009 39.92% Year 2010 35.85%
Fixed Assets Turnover Year 2008 0.525596016 Times Year 2009 0.45356887 Times Year 2010 0.245952217 Times
Dividend per Share Year 2008 1.09492177 Rs. Year 2009 0.00162611 Rs. Year 2010 0.000455858 Rs.
Earning per Share Year 2008 1.022611754 Rs. Year 2009 2.127046456 Rs. Year 2010 1.430524439 Rs.
Price/Earning Ratio Year 2008 14.24783154 Rs. Year 2009 12.83469852 Rs. Year 2010 12.36609422 Rs.
FUTURE PROSPECTS OF THE ORGANIZATION . To facilitate alignment of the Vision, Mission, Corporate Objectives and Corporate Philosophy, with the Business Goals and Objectives.
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RECOMMENDATIONS FOR IMPROVEMENT 1) Askari Bank Kamra branch needs to improve its criteria of hiring its employees. 2) It needs to expand level of their website because that is not sufficient for web visitor. 3) Askari Bank needs improvement in its management. 4) It needs to improve the working of its ATM machine. 5) Needs to have more branches specialy in Attock because Attock people finds difficulties to reach there.
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[online] [online]
2) Askari commercial annual report 2008 http://www.askaribank.com.pk/Reports/Askari%20Financials%202008.pdf 3) Wikipedia the encyclopedia http://en.wikipedia.org/wiki/Askari_Commercial_Bank [online]
ANNEXES www.askaribank.com.pk
2010 Rs. in
2 Rs. in
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Total value added 6,143,6 Value Allocated to employees Salaries, allowances 4,186,3 to providers of capital Cash dividend Bonus shares 642,74 642,74 to government Income tax 329,95 to expansion and Depreciation 684,19
6,053,3 68.1 4,093,0 10.5 1,071,2 10.5 1,071,2 5.4 534,44 11.1 645,95 67. 17. 17. 8. 10.
5. 9 100
20 10
27,183,382 18,008,418 9,174,964 33,066 (3,064,382)
Income from banking services Cost of services Valued added by banking services Non-banking services income Provision against non-performing assets
16%
5%
1 8 % 67%
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Our Network
Our presence, in all corners of Pakistan, is more than just being there
North Region Islamabad Rawalpindi I Rawalpindi I I Peshawar Azad Kashmir Corporate Islamic 19 15 14 12 9 1 9 79
Central Region Lahore I Lahore I I Sahiwal Faisalabad Gujranwala Multan Corporate Islamic 12 11 8 11 11 11 1 12 77
South Region Karachi I Karachi I I Karachi I I I Karachi IV Hyderabad Quetta Corporate Islamic 10 10 11 11 15 10 1 10 78
Financial Review
Non mark-up / non interest income The non mark-up / non interest income, declined by 14% ,which was attributable mainly to 98% decline in income from dealing in foreign currencies and overall subdued economic activities during the period under review. The fee, commission and brokerage income also recorded a decline of 3 % over last year. Gain on sale of investments increased by 48% reflecting improvement of the bourses during the year. (The unusual rise at 71% as shown in the graph was attribut- able to a nonrecurring transaction in 2007).
Non Interest Income (Rs. in million) 2 3 2 8 71% 5 2 % 3 % % 8 2010 % 2009 2008 2007 2006 2005 34% 0 2000 4000 6000 8000 10000 12000 Net Interest Income Non Interest Income Non Interest Income to Net Interest Income
Operating Expenses The sharp increase in administrative expenses during the last few years
y e a
12% over last year, mainly through rationalization of operating expenses particularly employee related costs. The rise attributable to increase in number of branches from 226 to 235 and corresponding increase in staff, additional recurring expenses on new IT initiative, beside persistent inflationary upsurge. Cost to income ratio recorded a negative trend mainly due to strain on revenues.
Operating Expenses (Rs. in million) 2010 2009 2008 2007 2006 2005
4 4 % 4 2 % 4 3 %
64% 6 51 7% %
0 1000 5000 2000 6000 3000 4000 7000 9000 10000 8000 Operating Expenses Cost to Income (C IR )
Shareholders funds ShareholdersRs.16.00 increased the end of to funds billion at December 31, 2010 from Rs. 14.95 billion of last year, register - ing an increase of 7% .
Financial Review
Earnings per share Earning per share (EPS) decreased from Rs. 1.79 per share (restated for bonus shares issued during 2010) of last year to Rs.1.48 per share for the year 2010. The decrease is mainly due to less then expected increase in net interest income, drop of 14% in non mark-up income and 12% increase in operating expenses. Also, the increase in number of shares has resulted in EPS to show a declining trend.
Financial Calendar
Earning per Share (Rupees) 2010 2009 2008 2007 against 0.48% last year,15 registering a decline of bps due to 14% decrease in profit for the year against 24% increase in total assets. 2006 2005
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Return on Average Assets 0.3% 2 0 0 0 . 1.5 . 1 1 % 5 2 0 . % 4 1.6 2 % % % 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0 5 Total Assets (Rs in billion) Assets (RoA) Average Return on
Non-performing loans (NPLs) and provisions During the year, NPLs increased by 22 percent. Part of this increase, 9 % was attributable to erstwhile Askari Leasing Limited - which was amalgamated with and into the Bank. The categories of classification have been appropriately provided for in compliance with relevant Prudential Regulations (PRs) of the SBP. The cumulative provision against NPLs registered an increase of 24% .The ratio of NPLs as a percentage of gross advances increased to 12.8% as of December 31, 2010, against last years 12.0%. The aggregate provisions
c o v e r e d 7 2 % o f t h e
25 0 0 9 2 0 0 8 2 0 0 7 2 0 0 6 2 0 0
3 2 . . 6 7 % %
6.4%
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Financial Calendar
8 NPLs against 71% of last year. Current, Savings and other deposits At the close of 2010, customer deposits had reached Rs.256 billion from Rs.206 billion at end 2009, an increase of 24 per- cent during the year. Local currency deposits grew at 26.47% whereas foreign currency deposits grew by 12.11% - local cur- rency deposits increased to Rs.220 billion from Rs. 174 billion as of December 31, 2009, while the foreign currency deposits stood at Rs.36 billion as on December 31, 2010. The aggregate number of deposit accounts reached 797,050 at end 2010 an increase of 15% over last year. . 4 %1 2.0% Gross Advances NPL as % of Gross Advances
Analysis of Deposits (Rs. in billion) 2010 2009 2008 2007 2006 2005
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2010 1st Quarter Results issued on 26, 2010 2nd Quarter Results issued on 24, 2010 3rd Quarter Results issued on 27, 2010 19th Annual Report issued on February 21, 2011 19th Annual General Meeting scheduled for 29, 2011 10% bonus shares announced days of AGM 2009 1st Quarter Results issued on 28, 2009 2nd Quarter Results issued on 20, 2009 3rd Quarter Results issued on 27, 2009 18th Annual Report issued on February 23, 2010 18th Annual General Meeting scheduled for 30, 2010 25% bonus shares issued days of AGM Summarized Quarterly Financial Results
March Within 45
March Within 45
2010 Rupees in million 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr 1st Qtr 2nd Qtr
Financial Position Assets Cash,short term funds & statutory deposits with SBP Investments Advances Operating fixed assets Other assets Total assets Liabilities Borrowings from financial institutions Customers deposits Sub-ordinated loans Other liabilities Total liabilities Shareholders funds Share capital Reserves and unappropriated profit Surplus on revaluation of assets Total shareholders funds Profit & Loss Total income Mark-up / return / interest earned Mark-up / return / interest expensed Net mark-up / interest income Non - mark-up / interest income Fee, commission and exchange income Other income Operating expenses Provisions against non-performing assets Operating profit Profit / (loss) before tax Taxation - charge / (reversal) Profit / (loss) after taxation Ratios Return on average shareholders funds (RoE) Return on average assets (RoA) 37,532 33,920 70,385 78,258 139,075 144,883 9,647 9,874 11,672 13,100 268,311 280,035 23,962 24,067 213,019 221,762 5,995 5,994 9,588 12,176 252,564 263,998 6,427 7,394 1,926 15,747 6,784 6,135 4,003 2,133 649 295 353 1,874 402 907 505 177 328 8.6% 0.5% 6,427 7,464 2,146 16,038 7,779 7,206 4,312 2,894 573 342 231 1,999 888 1,468 580 194 386 9.7% 0.6% 36,188 35,522 81,243 102,260 148,111 152,784 10,158 9,988 13,893 14,191 289,593 314,745 25,211 229,977 5,993 12,514 273,695 6,427 7,464 2,006 15,898 7,772 7,178 4,691 2,487 594 309 285 2,227 560 854 293 65 228 5.7% 0.3% 25,555 255,937 5,993 11,255 298,740 6,427 8,393 1,184 16,004 3,440 7,433 4,931 2,502 361 325 37 1,755 1,214 1,109 (105) (106) 1 0.0% 0.0% 33,031 33,815 120,218 8,323 9,184 204,572 23,289 157,324 2,996 7,342 190,951 5,073 7,279 1,269 13,621 6,140 5,563 3,167 2,397 577 375 202 1,676 791 1,298 507 190 317 9.5% 0.6% 34,363 39,620 129,130 9,493 9,573 222,179 16,735 180,658 2,996 7,686 208,074 5,073 7,547 1,485 14,105 5,989 5,416 3,073 2,343 573 332 241 1,682 860 1,234 374 106 268 7.7% 0.5%
2 0 0 9
3rd Qtr
4th Qtr
38,251 58,332 124,959 8,641 10,611 240,793 19,965 191,449 5,370 9,137 225,921 5,073 8,138 1,660 14,871 6,252 5,483 3,479 2,004 769 285 484 1,809 70 963 894 302 592 16.3% 1.0%
32,364 67,046 135,034 9,262 10,621 254,327 19,300 205,970 5,995 8,113 239,378 5,073 8,070 1,806 14,949 6,835 6,199 3,910 2,289 636 315 321 1,863 1,194 1,062 (132) (63) (69) -1.9% -0.1%
Share & Debt Information 1. Share Information The ordinary shares of Askari Bank Limited are listed on the Karachi, Lahore and Islamabad stock exchanges. The audited financial statements have been submitted to the stock exchanges within the requisite notice periods as required by the relevant regulations. Askari Banks Central Depository System ID is 05132. 1.1 Market symbols Karachi StockAExchange A K BL,Reuters ASKB.KA, Bloomberg K B L PA : 1.2 Share price and volume (R upees) A A skari kA s k ari k ari mar k aris A s A ari Ass Ass S EKs shars s A s num s Shar M ar ket e in Nu ber 20 103,5 2. 1. 29 0. 16 10 13 51,3 20 108,7 5. 4. 2. 95 59 0. 27 13 51 36,9 20 125,5 6. 11. 1,7 114,1 5. 0. 53 50 94 1,04 21 26 96,0 20 150,7 8. 19. 2,7 0. 13 70 12 612, 98 20 200,4 11. 21. 2,7 0. 14 68 10 444, 20 300,6 12. 29. 4,3 0. 12 75 99 1,62 20 405,8 12. 5. 1,8 0. 10 14 14 382, 20 507,3 14. 13. 2,7 0. 20 642,7 16. 11. 3,2 0. 28 12 17 190, 20 0. 31 12 27 132, 1.3 Record of share issues Y Issue Number of Share to public 15,000,00 150, 199 PriorRights issue @ Public issue issue 15,000,00 150, 199 Bonus @ 15% 50% 15,000,00 150, 199 50% Rights issue @ 6,750,000 67,5 199 Bonus @ 10% 22,500,00 225, 199 Bonus @ 15% 7,425,000 74,2 199 Bonus @ 5 % 12,251,25 122, 199 Bonus @ 5 % 4,696,312 46,9 200 Bonus @ 5 % 4,931,101 49,3 200 Bonus @ 5 % 5,177,712 51,7 200 Bonus @ 10% 5,436,568 54,3 200 Bonus @ 20% 11,416,79 114, 200 Bonus @ 33% 25,116,94 251, 200 Bonus @ 50% 49,731,55 497, 200 Bonus @ 35% 100,216,6 1,00 200 Bonus @ 25% 105,227,4 1,05 200 Shares issued to 101,469,3 1,01 201 Bonus @ 20% 28,273,31 282, 201 107,123,9 1,07 642,743,9 6,42 2. Askari Bank has issued the following Term Finance Debts Information Certificates (TFCs)- unsecured sub-ordinated debt, listed on the Lahore Stock Exchange (LSE). (Rupees in million) TFC TFC TF IPO investors 1,0 1,12 2, General Public 50 226 1 Underwriters 149 6 1,5 1,50 3, Market by PACRA IDs at LSE / AKB AKB AK Rating Symbols at December AA AA A Market Price as 5,0 5,00 5,
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Applicable Interest Rate (p.a.) Horizontal & Vertical Analysis Price Volume Chart (2010) No. of Sh are s in 0 0 0 9 , 0 0 0 8,0 00 7 , 0 0 0 6 , 0 0 0 5 , 0 0 0
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R u p ee s Pe r Sh ar e 3 5 3 0 2 5
14.3 14.7 15 Quarterly Price Volume Chart to 2010) (2005 Rs. per sha re High Closing 16 Closing Price > Opening Price 0 Opening Low 14 High Closing 0 12 0 10 0
0 00 0 1 , 0
20 15 10
8 0 6 0 4 0 0 Jan Feb Mar Apr May Jul Jun Aug Sep Oct Nov Dec Volume Avg Share Price
50 20 0Q1 Q3 Q1 Q3
Q2 Q4 Q2 Q4
Q3 Q1 Q3 Q1
2 0 0 5
2 0 0 6
2 0 0 7
2 0 0 8
2 0 0 9
2010
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F IN A N C I AL P O S IT IO N
Vertical Analysis
Horizontal Analysis
V a r ia n c e A a s a n sdb a la n c e2s 2 , 1 9 , 1 6 , 1 6 2 1 2 0 sset C a lahn cw s h 3 , 7 8 , 3 3 , 9 - 1 1 1 3 B e n d i nteo it Ln v e s tmg es n ts 190, 1 64 7, 6, 34 5, 4, 9 9 83 8 -I dvances A e f e r r tadx 1 5 2 1 3 5 1 2 8 50 3 5 20 8 2 D p e r a tifn g e d 9-, 9 9-, 2 8-, 2 18 3 10 2 6 1 e ix O th ears s e ts O 1 9 , ,3 2 , 6 96 % 4 % 3 % 3 6 1 % 2 % 3171444 21 5024, 280,49 3 4 1 8 6 2 % L ii alpbai y iat bel se , 3 , 0 2 , 9 2 , 5 25 1 4 1 l i B ol r r o w in g s 29 50 , 14 96 , 18 55 , 3%2 2 7 --2 s B e p o s a n do th e r 5 5 2 0 5 1 6 7 2 4 % 3 1 7 D u b - o ritsin a t e d25 , 9 5 , 9 2 , 9 0 12 0 0 S i a b i l i tai g a i n s t - - - 0 0 0 L e f e r rt edde s D t h el ira b il i t ie s 88, 0 43, 8 41, 7 -6 7 2 24 7 -4 8 ax O 81 33 59 % % % N e A s s e ts t 21696, 4, 21534, 0, 11292, 0, 27 5 11 55 -16 4 8 9 3 % S h a rceravpeit a l/ 07 0, 6 97 4, 2 95 7, 8 2%7 2 4 - % R e saep p r osp r i a t e 7 8 1 , 8 -6 -2 4 U rn f i t d p uor p lo n 1104, 1, 1133, 8, 0 06 1%63 53 47 7 6 -2 1 Se v a l uuas toi o n 88 24 , 10 46 , 19 1,94, -37 4 % 6 2 % 25 16 1 ,4 r f 1 6 1 4 03 5 % % -1 0 3 00 94 % 2/ 2/ 2/ 0 0 0 P R O F I& T 2 0 2a0v a2i 0a b2l 0 2 0 2 0 s a o inli v iffeoserrtm e n t lev s o n M eatukr/-n/u p r Pi m p a i r mi n tnhte r rin te r e s t v avl uos ftm een ts e e aa rrn e-/u p d M e tukr/n Pinv evrirsseiapgoa i n s t ro e o n rin te r e s t r e a d e b tw r i t t e n B f fd i r e c tsl y ex pen sed o N em a rk -/ p t u in te r e s t in c o m e P rgoavi nnsioonnis t a e r f o r m in g p a nasn d lod v a n c e s Iam spoani r m e n t lo s
2 7 ,9 5 2 1 7 ,9 3 7 1 0 ,0 1 6 2 ,3 1 9 383 2 2 ,5 8 7 1 3 ,5 5 4 9 ,0 3 3 2 ,3 2 4 431 1 8 ,3 9 3 1 0 ,6 5 1 7 ,7 4 3 3 ,8 2 5 24% 32% 11% 23% 27% 17% 21% 23% 20% -2 % -3 9 % 297 66 3 ,0 6 4 6 ,9 5 1 77 83 2 ,9 1 5 6 ,1 1 8 1 ,3 0 8 163 528 144 (2 ) 404 2 ,5 4 4 8 ,6 6 2 1 247 4 ,0 7 3 3 ,6 7 0 286% 100% 5% 14% -3 % 29% -9 8 % 48% -8 2 % 16% -1 4 % 5% 15015% -2 8 % 67% 4% -6 % -4 0 % 291% 109% 18% -6 % 36% -6 6 % 4% 45% 1 ,2 7 1 210 13 213 470 2 ,1 7 7 9 ,1 2 8 1 ,2 5 8 174 874 37 22 343 2 ,7 0 7 6 ,3 7 7 17% 27% 33% -9 8 % 1195% 2% -4 1 % -1 0 % 23% -9 % 23% -8 0 % -8 0 % -8 2 % -7 9 % -1 4 4 % -1 2 0 % -8 6 % 19% -4 4 % -8 8 % 7 ,8 1 3 42 7 ,8 5 5 1 ,2 7 3 1 ,2 7 3 330 330 943 834 1 ,7 7 7 1 .4 8 6 ,9 9 6 34 7 ,0 3 0 1 ,6 3 2 1 ,6 3 2 562 120 (14 7 ) 534 1 ,0 9 8 309 1 ,4 0 6 1 .7 9 5 ,9 0 4 11 5 ,9 1 6 461 461 17 (5 0 ) 108 75 386 2 ,1 4 5 2 ,5 3 1 0 .7 6 12% 100% 24% 12% -2 2 % -2 2 % -4 1 % 100% 100% 38% -1 4 % 170% 26% -1 7 % 18% 213% 19% 254% 254% 3138% -1 0 0 % -2 3 7 % 611% 184% -8 6 % -4 4 % 135%
C o m p o s itio n 23 2, 7, 18 9, 3, 13 6, 9, 7 8 90, 1 64 7, 6, 34 5, 4, 31 2 23 6 1 5 2 1 3 5 1 2 8 43 9 52 3 1 -2 - - 0 0 1914, 9, 21950, 2, 280,,42 13 0 14 0 31 944 ,3 224 , 8 99 05 % 04 % ,7 , 0 62 , 9 6 , 5 % % 1 6 1 1 3 2 % 2295509, 2140969, 1186559, 82 6 88 6 5 5 ,5 2 ,7 8 % 5-, - - 0 3 8, 0 43,3 41, 7 0 0 8 1 3 38 5 9 3 0 8 % 2 % 21696, 4, 21534, 0, 11292, 0, 145 00 13604 8 9 49 9 73 % % 00 77, 6 78, 2 5 ,, 8 45 8 46 8 1104, 1, 1133, 8, 1 08 9%3 8%8 9 ,4 7 1 88 24 , 10 46 , 10 1,96, 1%0 1%02 1 6 1 4 01 54 0%% 0%% 00 94 3
2 7 ,9 5 2 1 7 ,9 3 7 1 0 ,0 1 6 2 ,3 1 9 383 2 2 ,5 8 7 1 3 ,5 5 4 9 ,0 3 3 2 ,3 2 4 431 1 8 ,3 9 3 1 0 ,6 5 1 7 ,7 4 3 3 ,8 2 5 100% 64% 36% 8% 100% 60% 40% 10% 297 66 3 ,0 6 4 6 ,9 5 1 1 ,2 7 1 210 13 213 470 2 ,1 7 7 9 ,1 2 8 77 83 2 ,9 1 5 6 ,1 1 8 1 247 4 ,0 7 3 3 ,6 7 0 11% 25% 5% 1% 1% 13% 27% 6% 1% 2% 1%
20 20 20 20 20 20 R u p e ein m illio n s s V a r ia n c e
1 ,3 0 8 163 528 144 1 ,2 5 8 174 874 37 (2 ) 404 2 ,5 4 4 8 ,6 6 2 6 ,9 9 6 34 7 ,0 3 0 1 ,6 3 2 1 ,6 3 2 562 120 (1 4 7 ) 534 1 ,0 9 8 309 1 ,4 0 6 22 343 2 ,7 0 7 6 ,3 7 7 5 ,9 0 4 11 5 ,9 1 6 461 461 17 (5 0 ) 108 75 386 2 ,1 4 5 2 ,5 3 1 2% 8% 33% 28% 28% 5% 5% 1% 1% 3% 3% 6% 2% 11% 38% 31% 31% 7% 7% 2% 1% -1 % 2% 5% 1% 6% 2% 15% 35% 32% 32% 3% 3% 1% 2% 12% 14%
R u p e ein s
m illio n s
N e m a r k - u p / i n t ienr c o tma fet epr r o v i s i o n s t es N o n a r k u p / i ni n ecroem te m t s F ei vc,io m nm o sma inodb r o k e r a n ce o m e e d ei c i s e n ig D dd I n ac ioo msreo le fein lvi nnsftmr e-innts tr r e n c i e s f a m a ego e ge i cn G n rn n li g o dn nr e v a l u a tiufin v e s tm e n ts U la ses aif iaeseh ieold o rt r a d i n- o oe n a c t h ei n c os m e f d n O o t anlro n - m a r/k inpt e r eintgc o tm e T u s NAo d mairnkist u p / i netxe p e s ts e s n m r n r a xiv e n s e s e t tp e r O r ohve i s i o n s p w r i te / ffO th e r o h asr g e s c o t an lo n - m a r/k inpte r ees x p e n s e s T u t E x tra o r d i n a/r y unusual ite m s P r o fbi te f o trae x a t i o n T a xa t iocnu r r e n t pr y e iaor rs d refde e r P r o fai ft t et ra x a t i o n U n a p p r o p rpi a oef b tr o u g fhot r w a r d rt d i P r o fai tv a i l a b ol ea p p r o p r i a t i o n f r B a s i/cd i lu te d e a r n in p es r g s h a r R u p e e s e
C o m p o s itio n
Balance Sheet Horizontal Analysis Cumul ative average growth rate for the last three year - annualised 1 5 % Cash and balan ces with treasu ry banks 2 5 3% Balan ces 0 3 3 with other 1 8 % % 52 % banks 4 % Lending to % 5 0% financial 5 % institutions Investme nts Advances Operatin g fixed assets Deferred tax assets Other assets Total assets 27% 45
5 1
6%
19 % 20 % 4 6 25 %% 26 4 % 7 0 % % 1 3 % 1 0 %
Bills payabl e Borro wings Depos its and other accou nts Subordin ated loans Liabili ties agains
t a s s e t s s u b je ct t o fi n a n
ce lease Deferred tax liabilities Other liabilities Net assets Share capital/ Head office capital Rese rves Unappropriated profit Surplus on revaluation of assets - net of tax
Balance Sheet Vertical Analysis Composition for the last three year 100 90% 80% 70% 60% 50% 40% 30% 20% 10% 90% 80% 70% 60% 50% 40% 30% 20% 10% 1 9 8 7 6 5 4 3 2 1
46
02 0 Other 2 2 assets Operating fixed assets Advances Investme nts Lending to financial institution s Balances with other banks Cash and balance with treasury banks
2 2009 0 Surplus on-revaluation of asset s ne t of tax unappropriated profit Reserves Share capital/ Head office capital account Other tax liabili ties Defer red tax liabili ties Subordin ated loans Deposits and other accounts Borrowings Bill payable
47
December 31
2005 2008
2006 2009
Shareholders funds Total shareholders funds 8,813 11,053 12,266 12,971 14,949 16,004 Share capital 1,507 2,004 3,006 4,059 5,073 6,427 Reserves 6,088 7,615 9,093 7,976 8,070 8,393 Surplus on revaluation of assets 1,434 166 936 1,218 1,806 1,184 Profitability Interest income 8,781 12,597 15,143 18,394 22,587 27,952 Interest expenditure 4,278 6,977 8,686 10,651 13,554 17,937 Net interest income 4,503 5,620 6,458 7,743 9,033 10,016 Provision against non-performing 3,922 assets 602 1,129 4,073 2,915 3,064 Fee, commission and exchange income 839 1,014 1,073 1,258 1,308 1,271 Other income 713 1,125 3,493 1,449 1,236 906 Operating expenses 2,594 3,283 4,802 5,916 7,030 7,855 Profit before taxation 2,859 3,347 2,300
39
12,269 8,356 8,370 2,597 36,245 35,810 Investing activities (8,319) (3,715) (13,527) 155 (32,063) (37,311) Financing activities 1,736 (226) (203) (446) 2,998 (3) Changes in cash & cash equivalents 5,6862,306 4,415 (5,359) 7,191 (1,501) Cash & cash equivalents at end of the year 19,297 23,712 18,353 20,659 27,850 26,350 Business transacted Rupees in billion Imports 98.30 119.30 119.27 148.24 140.16 177.32 Exports 92.00 97.30 82.98 99.70 105.41 105.11
40
Ratios Return on average shareholders funds (RoE) - % 27.70 22.60 22.99 3.06 7.86 6.09 Return on average assets (RoA) - % 1.60 1.40 1.54 0.20 0.48 0.33 Profit before tax ratio - % 32.56 26.57 15.19 2.51 7.23 4.55 Gross spread ratio - % 51.28 44.61 42.64 42.10 39.99 35.83 Income / Expense ratio - Times 1.38 1.29 1.13 1.02 1.07 1.04 Advance to deposits (CDR)- % 72.40 75.23 70.46 76.83 65.56 59.70 Earning assets to total assets Operating fixed assets to average shareholders funds 43.70 38.36 43.98 65.51 66.34 64.54 Capital adequacy ratio (CAR) 11.00 10.90 9.35 9.22 11.75 10.30 Rate of cash dividends 15.00 10.00 15.00 Rate of bonus issue * 33.00 50.00 35.00 25.00 20.00 10.00 Price earning ratio (PE) 9.60 9.30 11.19 15.32 15.28 11.97 Dividend yield ratio - % 1.18 0.95 1.50 Dividend
41
11.18 -
13.37 16.82 -
43
44