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MBA-FinanceMBA-Finance
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Presentation
On
Allied Bank Ltd.
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Brief Introduction of the Brief Introduction of the OrganizationOrganization
ABL was established in Lahore before ABL was established in Lahore before independence in 1942 .independence in 1942 .It is one of the largest banks in Pakistan now It is one of the largest banks in Pakistan now with more than 800 Branches in over 300 with more than 800 Branches in over 300 cities. cities. It is engaged in Commercial & Retail Banking It is engaged in Commercial & Retail Banking and related services domestically and and related services domestically and overseas.overseas.The bank leads the way by having the largest The bank leads the way by having the largest network of 560 ATM’s in more than 145 cities network of 560 ATM’s in more than 145 cities and towns across Pakistan. and towns across Pakistan.
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Competitors:Competitors:
Following are the competitors of Allied Bank Ltd.Following are the competitors of Allied Bank Ltd.
United Bank Ltd.United Bank Ltd.
Habib Bank Ltd.Habib Bank Ltd.
National Bank Ltd.National Bank Ltd.
Muslim Commercial Bank Ltd.Muslim Commercial Bank Ltd.
Bank Al-FalahBank Al-Falah
Meezan Bank Ltd.Meezan Bank Ltd.
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Business volume.Business volume.
Business volume of Allied Bank Ltd as on 31Business volume of Allied Bank Ltd as on 31stst December 2010n is as follows. (All amounts are in December 2010n is as follows. (All amounts are in Million Rupees)Million Rupees)
Total AssetsTotal Assets 449,931.526 449,931.526
Share CapitalShare Capital 7,821.009 7,821.009
Total EquityTotal Equity 35,974.857 35,974.857
Total SalesTotal Sales 44,992.69644,992.696
Net ProfitNet Profit 12,343.10612,343.106
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Hierarchy Chart:Hierarchy Chart:President
Senior Executive Vice President
Executive Vice President
Vice President
Assistant Vice President
Grade I Officer
Grade II Officer
Grade III Officer
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Training ProgramTraining Program
I did my internship at Allied Bank Chowk I did my internship at Allied Bank Chowk Phullarwan from Phullarwan from 04 May 201104 May 2011 till till 24 June, 24 June, 20112011
The assignments given to me during the The assignments given to me during the session and the tasks done by me are as session and the tasks done by me are as follows: follows:
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Filling-up the deposit slipsFilling-up the deposit slips
Providing information regarding cheque Providing information regarding cheque books and ATM cards.books and ATM cards.
Customer Service DepartmentCustomer Service Department
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Account Opening Department:Account Opening Department:
Providing information regarding deferent Providing information regarding deferent type of accounts.type of accounts.
Filling up the Account-Opening form.Filling up the Account-Opening form.
Issuing cheque books and ATM cards.Issuing cheque books and ATM cards.
Closing an account.Closing an account.
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Clearing Department:Clearing Department:
Filling up the deposit slips for the cheques.Filling up the deposit slips for the cheques.
Pasting stamps on the cheques to cross Pasting stamps on the cheques to cross the cheques in favor of branch.the cheques in favor of branch.
Keeping record of cheques sent through Keeping record of cheques sent through clearing.clearing.
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Government Service DepartmentGovernment Service Department
Making record of utility bills scrolls.Making record of utility bills scrolls.
Making payment orders in favor of income Making payment orders in favor of income tax officertax officer
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Financial StatementsFinancial Statements
Balance sheetBalance sheet
www.vustudents.ning.comwww.vustudents.ning.com 449,931,526418,374,331366,680,192TOTAL LIABILITIES & EQUITY
35,974,85729,959,97822,355,614
4,808,4054,068,7001,550,497Surplus on revaluation of assets – net of tax
31,166,45225,891,27820,805,117
15,828,53312,198,4258,536,697Unappropriated profits
7,516,9106,582,8455,804,776Reserves
7,821,0097,110,0086,463,644Share capital
EQUITY
35,974,85735,974,85729,959,97822,355,614Net Assets
413,956,669413,956,669388,414,353344,324,578Total Liabilities
12,284,36011,059,48413,620,616Other liabilities
--1,871-Deferred tax liabilities
----Liabilities against assets subject to finance lease
5,494,8005,497,0002,498,000Sub ordinate loans
371,284,268328,875,037297,475,321Deposits & other accounts
20,774,45039,818,53227,778,151Borrowings
4,118,7913,162,4292,952,490Bills Payable
LIABILITIES
449,931,526418,374,331366,680,192TOTAL ASSETS
16,480,37217,955,04517,369,691Other assets
484,387-1,029,223Deferred tax assets
15,359,74212,446,74811,134,436Operating fixed assets
253,099,509237,344,038212,972,008Advances
121,173,40994,789,49282,631,118Investments
11,488,94428,122,93215,793,183Lending to financial institutions
579,5551,280,4432,096,779Balances with other banks
31,265,60826,435,63323,653,754Cash & balances with treasury banks
ASSETS
201020092008
Rupees in “000”Description
449,931,526418,374,331366,680,192TOTAL LIABILITIES & EQUITY
35,974,85729,959,97822,355,614
4,808,4054,068,7001,550,497Surplus on revaluation of assets – net of tax
31,166,45225,891,27820,805,117
15,828,53312,198,4258,536,697Unappropriated profits
7,516,9106,582,8455,804,776Reserves
7,821,0097,110,0086,463,644Share capital
EQUITY
35,974,85735,974,85729,959,97822,355,614Net Assets
413,956,669413,956,669388,414,353344,324,578Total Liabilities
12,284,36011,059,48413,620,616Other liabilities
--1,871-Deferred tax liabilities
----Liabilities against assets subject to finance lease
5,494,8005,497,0002,498,000Sub ordinate loans
371,284,268328,875,037297,475,321Deposits & other accounts
20,774,45039,818,53227,778,151Borrowings
4,118,7913,162,4292,952,490Bills Payable
LIABILITIES
449,931,526418,374,331366,680,192TOTAL ASSETS
16,480,37217,955,04517,369,691Other assets
484,387-1,029,223Deferred tax assets
15,359,74212,446,74811,134,436Operating fixed assets
253,099,509237,344,038212,972,008Advances
121,173,40994,789,49282,631,118Investments
11,488,94428,122,93215,793,183Lending to financial institutions
579,5551,280,4432,096,779Balances with other banks
31,265,60826,435,63323,653,754Cash & balances with treasury banks
ASSETS
201020092008
Rupees in “000”Description
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Profit & Loss Account Profit & Loss Account
24,153,44524,153,44520,160,23915,006,838
5,671,7865,671,7865,958,0344,152,105Total Non mark up/Interest Income
251,14435,98559,154Other income
(23,884)(7,897)-Unrealized loss on revaluation of investments classified as held for trading –net
1,416,5321,085,043151,068Gain on sale of securities
418,524761,934230,060Income from dealing in foreign currencies
1,118,2701,374,9671,420,364Dividend Income
2,491,2002,708,0022,291,459Fee, commission & brokerage income
NON MARK UP/INTEREST INCOME
18,481,65914,202,20510,854,733Net mark up/Interest Income after provisions
4,083,3854,497,6043,156,001Total provisions & bad debts
---2,736Bad debts written off directly
(280,595)280,595-Provisions against lending to financial institutions
1,289,4041,054,0461,781,110Provision/(Reversal) for diminution in the value of Investments – net
3,074,5763,162,9631,372,155Provisions against non performing loans & advances & general provisions– net
22,565,04422,565,04418,699,80914,010,734Net mark up/Interest Income
22,427,65222,421,69416,559,806Mark up/Return/Interest expensed
44,992,69641,121,50330,570,540Mark up/Return/Interest earned
201020092008
Rupees in “000”Description
24,153,44524,153,44520,160,23915,006,838
5,671,7865,671,7865,958,0344,152,105Total Non mark up/Interest Income
251,14435,98559,154Other income
(23,884)(7,897)-Unrealized loss on revaluation of investments classified as held for trading –net
1,416,5321,085,043151,068Gain on sale of securities
418,524761,934230,060Income from dealing in foreign currencies
1,118,2701,374,9671,420,364Dividend Income
2,491,2002,708,0022,291,459Fee, commission & brokerage income
NON MARK UP/INTEREST INCOME
18,481,65914,202,20510,854,733Net mark up/Interest Income after provisions
4,083,3854,497,6043,156,001Total provisions & bad debts
---2,736Bad debts written off directly
(280,595)280,595-Provisions against lending to financial institutions
1,289,4041,054,0461,781,110Provision/(Reversal) for diminution in the value of Investments – net
3,074,5763,162,9631,372,155Provisions against non performing loans & advances & general provisions– net
22,565,04422,565,04418,699,80914,010,734Net mark up/Interest Income
22,427,65222,421,69416,559,806Mark up/Return/Interest expensed
44,992,69641,121,50330,570,540Mark up/Return/Interest earned
201020092008
Rupees in “000”Description
www.vustudents.ning.comwww.vustudents.ning.com 10.5210.026.43Earnings per share - Basic & Diluted (In Rupees)
20,459,80315,691,22411,145,535PROFIT AVAILABLE FOR APPROPRIATION
12,234,4718,569,0576,988,849
36,04632,36017,541Transfer from surplus on revaluation of fixed assets –net of tax
12,198,4258,536,6976,971,308Unappropriated profit brought forward
8,225,3327,122,1674,156,686PROFIT AFTER TAXATION
4,117,7743,413,9531,964,254
(417,346)(132,509)134,829Taxation – Deferred
373,941--Taxation – Prior years
4,161,1793,546,4621,829,425Taxation – Current
12,343,10612,343,10610,536,12010,536,1206,120,9406,120,940PROFIT BEFORE TAXATION
----Extra ordinary/unusual items
11,810,3399,624,1198,885,898Total non mark up/Interest expenses
71,24867,377390,877Other charges
254,666215,023-Worker welfare fund
(88,239)(25,353)190,824Provision against off balance sheet obligations net
331,077(56,431)214,284Provision against other assets – net
11,241,5879,423,5038,089,913Administrative expenses
NON MARK UP/INTEREST EXPENSES
10.5210.026.43Earnings per share - Basic & Diluted (In Rupees)
20,459,80315,691,22411,145,535PROFIT AVAILABLE FOR APPROPRIATION
12,234,4718,569,0576,988,849
36,04632,36017,541Transfer from surplus on revaluation of fixed assets –net of tax
12,198,4258,536,6976,971,308Unappropriated profit brought forward
8,225,3327,122,1674,156,686PROFIT AFTER TAXATION
4,117,7743,413,9531,964,254
(417,346)(132,509)134,829Taxation – Deferred
373,941--Taxation – Prior years
4,161,1793,546,4621,829,425Taxation – Current
12,343,10612,343,10610,536,12010,536,1206,120,9406,120,940PROFIT BEFORE TAXATION
----Extra ordinary/unusual items
11,810,3399,624,1198,885,898Total non mark up/Interest expenses
71,24867,377390,877Other charges
254,666215,023-Worker welfare fund
(88,239)(25,353)190,824Provision against off balance sheet obligations net
331,077(56,431)214,284Provision against other assets – net
11,241,5879,423,5038,089,913Administrative expenses
NON MARK UP/INTEREST EXPENSES
www.vustudents.ning.comwww.vustudents.ning.com(806,565)(67,385)32,397Held for trading securities
16,914,583(12,610,344)2,626,058Lending to financial institutions
(Increase)/decrease in operating assets
16,413,50814,223,0798,692,749
5,188,6725,061,9263,992,173
-2,736Bad debts written off directly
(11,977)(4,220)(9,889)Gain on sale of operating fixed assets
59,37320,711Operating fixed assets written off
331,077(56,431)214,284(Reversal)/Provisions against other assets – net
(88,239)(25,353)190,824(Reversal)/Provisions against off balance sheet obligations – net
23,8847,897-Unrealized loss on revaluation of held for trading securities
(280,595)280,595-Provision against landings to financial institutions
1,289,4041,054,0461,781,110Provisions for diminution in the value of investments –net
3,074,5763,162,9631,372,155Provisions against non performing loans & advances and general provisions – net
850,537633,056420,242Depreciation/amortization
Adjustment for non cash charges
11,224,8369,161,1534,700,576
(1,118,270)(1,374,967)(1,420,364)Less: Dividend income
12,343,10610,536,1206,120,940Profit before taxation
CASH FLOWS FROM OPERATING ACTIVITIES
201020092008
Rupees in “000”Description
(806,565)(67,385)32,397Held for trading securities
16,914,583(12,610,344)2,626,058Lending to financial institutions
(Increase)/decrease in operating assets
16,413,50814,223,0798,692,749
5,188,6725,061,9263,992,173
-2,736Bad debts written off directly
(11,977)(4,220)(9,889)Gain on sale of operating fixed assets
59,37320,711Operating fixed assets written off
331,077(56,431)214,284(Reversal)/Provisions against other assets – net
(88,239)(25,353)190,824(Reversal)/Provisions against off balance sheet obligations – net
23,8847,897-Unrealized loss on revaluation of held for trading securities
(280,595)280,595-Provision against landings to financial institutions
1,289,4041,054,0461,781,110Provisions for diminution in the value of investments –net
3,074,5763,162,9631,372,155Provisions against non performing loans & advances and general provisions – net
850,537633,056420,242Depreciation/amortization
Adjustment for non cash charges
11,224,8369,161,1534,700,576
(1,118,270)(1,374,967)(1,420,364)Less: Dividend income
12,343,10610,536,1206,120,940Profit before taxation
CASH FLOWS FROM OPERATING ACTIVITIES
201020092008
Rupees in “000”Description
Cash Flow StatementsCash Flow Statements
www.vustudents.ning.comwww.vustudents.ning.com (28,821,798)(28,821,798)(9,999,771)(9,999,771)(3,543,746)(3,543,746)Net cash flows used in investing activities
22,48921,058155,480Proceeds from sale of fixed assets
(3,774,048)(1,971,579)(2,659,638)Investments in operating fixed assets
1,113,5621,374,0381,362,722Dividend income received
---Net investment in subsidiaries
1,021,1791,865,280(3,749,608)Net investments in held to maturity securities
(27,204,980)(11,288,568)1,347,298Net investments in available for sale securities
CASH FLOWS FROM INVESTING ACTIVITIES
36,199,58536,199,58510,811,07710,811,077563,633563,633Net cash flow from operating activities
(1,725,871)(2,004,490)(3,535,489)Income tax paid – net
37,925,45612,815,5674,099,122
25,894,92240,875,17643,802,432
1,306,263(2,546,450)6,074,203Other liabilities
42,409,23131,399,71633,502,939Deposits
(18,776,934)11,811,9714,767,184Borrowings from financial institutions
956,362209,939(541,894)Bills payable
Increase/(decrease) in operating liabilities
(4,382,974)(42,282,688)(48,396,059)
(1,660,945)(2,069,966)(5,114,895)Other assets (excluding advance taxation)
(18,830,047)(27,534,993)(45,939,619)Advances – net
(28,821,798)(28,821,798)(9,999,771)(9,999,771)(3,543,746)(3,543,746)Net cash flows used in investing activities
22,48921,058155,480Proceeds from sale of fixed assets
(3,774,048)(1,971,579)(2,659,638)Investments in operating fixed assets
1,113,5621,374,0381,362,722Dividend income received
---Net investment in subsidiaries
1,021,1791,865,280(3,749,608)Net investments in held to maturity securities
(27,204,980)(11,288,568)1,347,298Net investments in available for sale securities
CASH FLOWS FROM INVESTING ACTIVITIES
36,199,58536,199,58510,811,07710,811,077563,633563,633Net cash flow from operating activities
(1,725,871)(2,004,490)(3,535,489)Income tax paid – net
37,925,45612,815,5674,099,122
25,894,92240,875,17643,802,432
1,306,263(2,546,450)6,074,203Other liabilities
42,409,23131,399,71633,502,939Deposits
(18,776,934)11,811,9714,767,184Borrowings from financial institutions
956,362209,939(541,894)Bills payable
Increase/(decrease) in operating liabilities
(4,382,974)(42,282,688)(48,396,059)
(1,660,945)(2,069,966)(5,114,895)Other assets (excluding advance taxation)
(18,830,047)(27,534,993)(45,939,619)Advances – net
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31,750,99527,354,76025,617,627Cash & cash equivalents at the end of year
78,838428,027510,618Effects of exchange rate changes on cash and cash equivalents
27,275,92225,189,60029,842,093Cash & cash equivalents at beginning of the year
4,396,2351,737,133(4,735,084)Increase/(decrease) in cash & cash equivalents during the year
(2,981,552)925,827(1,754,971)Net cash flows from/(used in) financing activities
(2,979,352)(2,073,173)(1,753,971)Dividends paid
(2,200)2,999,000(1,000)Net receipt/(payment) of sub ordinate loan
---Proceeds from issuance of sub ordinate loan
CASH FLOWS FROM FINANCING ACTIVITIES
31,750,99527,354,76025,617,627Cash & cash equivalents at the end of year
78,838428,027510,618Effects of exchange rate changes on cash and cash equivalents
27,275,92225,189,60029,842,093Cash & cash equivalents at beginning of the year
4,396,2351,737,133(4,735,084)Increase/(decrease) in cash & cash equivalents during the year
(2,981,552)925,827(1,754,971)Net cash flows from/(used in) financing activities
(2,979,352)(2,073,173)(1,753,971)Dividends paid
(2,200)2,999,000(1,000)Net receipt/(payment) of sub ordinate loan
---Proceeds from issuance of sub ordinate loan
CASH FLOWS FROM FINANCING ACTIVITIES
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Ratio analysisRatio analysis
Financial ratios are useful indicators of a Financial ratios are useful indicators of a firm's performance and financial situation.firm's performance and financial situation.
With the help of ratio analysis conclusion With the help of ratio analysis conclusion can be drawn regarding several aspects can be drawn regarding several aspects such as financial health, profitability and such as financial health, profitability and operational efficiency of the undertaking.operational efficiency of the undertaking.
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Ratios AnalysisRatios Analysis
Following ratios are covered in ratio analysis:Following ratios are covered in ratio analysis:
1)1) Liquidity RatiosLiquidity Ratios
2)2) Leverage RatiosLeverage Ratios
3)3) Profitability RatiosProfitability Ratios
4)4) Activity RatiosActivity Ratios
5)5) Market RatiosMarket Ratios
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Liquidity RatiosLiquidity Ratios
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Current RatioCurrent Ratio
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Current ratio= current assets/current liabilitiesCurrent ratio= current assets/current liabilities
20082008 20092009 20102010
Current Current RatioRatio
355,545,756 / 355,545,756 / 46,849,257 46,849,257
=7.59=7.59
405,927,583 / 405,927,583 / 59,539,316 59,539,316
=6.82=6.82
434,571784 434,571784 /42,672,401/42,672,401
=10.18=10.18
7.589 6.817
10.184
0
5
10
15
2008 2009 2010
Current Ratio
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Working of Current AssetsWorking of Current Assets
CURRENT ASSETS 2008 2009 2010
Cash & balances with treasury banks
23,653,754 26,435,633 31,265,608
Balances with other banks 2,096,779 1,280,443 579,555
Lending to financial institutions 15,793,183 28,122,932 11,488,944
Investments 82,631,118 94,789,492 121,173,409
Advances 212,972,008 237,344,038 253,099,509
Deferred tax assets 1,029,223 - 484,387
Other assets 17,369,691 17,955,045 16,480,372
Total Current Assets 355,545,756 405,927,583 434,571784
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Working of Current LiabilitiesWorking of Current Liabilities
CURRENT LIABILITIES 2007 2008 2009
Bills Payable 2,952,490 3,162,429 4,118,791
Borrowings 27,778,151 39,818,532 20,774,450
Sub ordinate loans 2,498,000 5,497,000 5,494,800
Liabilities against assets subject to finance lease
- - -
Deferred tax liabilities - 1,871 -
Other liabilities 13,620,616 11,059,484 12,284,360
Total LiabilitiesTotal Liabilities 46,849,257 59,539,316 42,672,401
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Acid Test Ratio:Acid Test Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Acid Test Ratio = Liquid Assets / Current LiabilitiesAcid Test Ratio = Liquid Assets / Current Liabilities
20082008 20092009 20102010
Acid test Acid test ratioratio
124,174,834 / 124,174,834 / 46,849,25746,849,257
==2.652.65
150,628,500 / 150,628,500 / 59,539,31659,539,316
==2.522.52
164,507,516 / 164,507,516 / 42,672,40142,672,401
==3.863.86
2.65 2.52
3.86
0
2
4
2008 2009 2010
Acid Test Ratio
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Working of Liquid AssetsWorking of Liquid Assets
Liquid assets 2008 2009 2010
Cash & balances with treasury banks
23,653,754 26,435,633 31,265,608
Balances with other banks 2,096,779 1,280,443 579,555
Lending to financial institutions 15,793,183 28,122,932 11,488,944
Investments 82,631,118 94,789,492 121,173,409
Total 124,174,834124,174,834 150,628,500150,628,500 164,507,516164,507,516
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Working Capital Ratio:Working Capital Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Working Capital Ratio = Current Assets – Current LiabilitiesWorking Capital Ratio = Current Assets – Current Liabilities
20082008 20092009 20102010
Working Working Capital Capital RatioRatio
355,545,756 -355,545,756 -46,849,25746,849,257
==308,696,499308,696,499
405,927,583 - 405,927,583 - 59,539,31659,539,316
==346,388,267346,388,267
434,571,784 - 434,571,784 - 42,672,40142,672,401
==391,899,383391,899,383
308,696,499346,388,267
391,899,383
0
200,000,000
400,000,000
2008 2009 2010
Working Capital
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Leverage RatiosLeverage Ratios
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Times Interest Earned:Times Interest Earned:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Times Interest Earned = EBIT / Total Interest ExpenseTimes Interest Earned = EBIT / Total Interest Expense 20082008 20092009 20102010
Times Times Interest Interest EarnedEarned
15,006,838 / 15,006,838 / 8,885,8988,885,898
==1.691.69
20,160,239 / 20,160,239 / 9,624,1199,624,119
==2.092.09
24,153,445 / 24,153,445 / 11,810,33911,810,339
2.052.05
1.6882.094 2.045
0
1
2
3
2008 2009 2010
Times Interest Earned
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WorkingWorking of of EBITEBIT
EBIT 2008 2009 2010
PROFIT BEFORE PROFIT BEFORE TAXATION TAXATION 6,120,940 6,120,940 10,536,120 10,536,120 12,343,10612,343,106
Total non mark up/Interest expenses 8,885,898 9,624,1199,624,119 11,810,339
Total 15,006,838 20,160,239 24,153,445
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Debt Ratio:Debt Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Debt Ratio = Total Assets / Total DebtDebt Ratio = Total Assets / Total Debt
20082008 20092009 20102010
Debt RatioDebt Ratio 344,324,578 / 344,324,578 / 366,680,192366,680,192
=0.94=0.94
388,412,482 / 388,412,482 / 418,374,331418,374,331
=0.93=0.93
413,956,669 / 413,956,669 / 449,931,526449,931,526
==0.920.92
0.939
0.928
0.92
0.91
0.92
0.93
0.94
2008 2009 2010
Debt Ratio
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Debt / Equity Ratio:Debt / Equity Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Debt / Equity Ratio = Total long term debt / EquityDebt / Equity Ratio = Total long term debt / Equity
20082008 20092009 20102010
Debt / Debt / Equity Equity RatioRatio
344,324,578 / 344,324,578 / 22,355,61422,355,614
=15.40=15.40
388,412,482 / 388,412,482 / 29,959,97829,959,978
==12.9612.96
413,956,669 / 413,956,669 / 35,974,85735,974,857
==11.5111.51
15.412.96 11.51
0
10
20
2008 2009 2010
Debt / Equity Ratio
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Debt / Tangible Net Worth Ratio:Debt / Tangible Net Worth Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank Ltd
Debt / Tangible Net Worth Ratio = Total Debt / Tangible Net Debt / Tangible Net Worth Ratio = Total Debt / Tangible Net WorthWorth
20082008 20092009 20102010
Debt / Debt / Tangible Tangible Net Worth Net Worth RatioRatio
344,324,578 / 344,324,578 / 22,355,61422,355,614
=15.40=15.40
388,412,482 / 388,412,482 / 29,959,97829,959,978
=12.96=12.96
413,956,669 / 413,956,669 / 35,974,85735,974,857
==11.5111.51
15.412.96 11.51
0
10
20
2008 2009 2010
Debt / Tangible Net Worth
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Working of Tangible Net WorthWorking of Tangible Net Worth
Tangible Net WorthTangible Net Worth 2008 2009 2010
Total AssetsTotal Assets366,680,192366,680,192 418,374,331418,374,331 449,931,526449,931,526
Less: Total LiabilitiesLess: Total Liabilities344,324,578344,324,578 388,414,353388,414,353 413,956,669413,956,669
Tangible Net Worth22,355,61422,355,614 29,959,97829,959,978 35,974,85735,974,857
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Total Capitalization Ratio:Total Capitalization Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdTotal capitalization ratio = Long term debt / (Long term debt + Total capitalization ratio = Long term debt / (Long term debt +
Equity)Equity)
20082008 20092009 20102010
Total Total capitalizaticapitalization ratioon ratio
297,475,321 / 297,475,321 / 319,830,935319,830,935
==0.930.93
328,875,037 / 328,875,037 / 358,835,015358,835,015
==0.920.92
371,284,268 / 371,284,268 / 407,259,125407,259,125
==0.910.91
0.93
0.92
0.91
0.9
0.92
0.94
2008 2009 2010
Total Capitalization Ratio
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Profitability RatiosProfitability Ratios
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Net Profit Margin:Net Profit Margin:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdNet Profit Margin = (Net profit / net sales) × 100Net Profit Margin = (Net profit / net sales) × 100
20082008 20092009 20102010
Net Profit Net Profit MarginMargin
41,56,686 / 41,56,686 / 30,570,54030,570,540
==13.60%13.60%
7,122,167 / 7,122,167 / 41,121,50341,121,503
==17.32%17.32%
8,225,332 / 8,225,332 / 44,992,69644,992,696
==18.28%18.28%
13.60%17.32% 18.28%
0.00%
10.00%
20.00%
2008 2009 2010
Net Profit Margin
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Return on Assets:Return on Assets:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdReturn on Assets = (Net profit / Total assets) × 100Return on Assets = (Net profit / Total assets) × 100
20082008 20092009 20102010
Return on Return on AssetsAssets
4,156,686 / 4,156,686 / 366,680,192366,680,192
=1.13%=1.13%
7,122,167 / 7,122,167 / 418,374,331418,374,331
==1.70%1.70%
8,225,332 / 8,225,332 / 449,931,526449,931,526
==1.83%1.83%
1.13%
1.70% 1.83%
0.00%
1.00%
2.00%
2008 2009 2010
Return on Assets
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DuPont Return on Assets:DuPont Return on Assets:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdDuPont Return on Assets = (Net Income / Sale) × (Sale / Total DuPont Return on Assets = (Net Income / Sale) × (Sale / Total
Assets)Assets)
20082008 20092009 20102010
DuPont DuPont Return on Return on AssetsAssets
0.13597 / 0.083370.13597 / 0.08337
==1.13%1.13%
0.17319 / 0.098240.17319 / 0.09824
==1.70%1.70%
0.1828 / 0.09990.1828 / 0.0999
=1.83%=1.83%
1.13%
1.70% 1.83%
0.00%
1.00%
2.00%
2008 2009 2010
DuPont Return on Assets
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Operating Income Margin:Operating Income Margin:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdOperating income margin = (Operating income / Net sales) × Operating income margin = (Operating income / Net sales) ×
100100
20082008 20092009 20102010
Operating Operating income income marginmargin
2,764,820 / 2,764,820 / 30,570,54030,570,540
==9.04%9.04%
4,778,702 / 4,778,702 / 41,121,50341,121,503
==11.62%11.62%
7,240,072 / 7,240,072 / 44,992,69644,992,696
==16.09%16.09%
9.04%11.62%
16.09%
0.00%
10.00%
20.00%
2008 2009 2010
Operating Income Margin
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Return on Operating Assets:Return on Operating Assets:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdReturn on operating assets = Net profit / Net operating assetsReturn on operating assets = Net profit / Net operating assets
20082008 20092009 20102010
Return on Return on operating operating assetsassets
4,156,686 / 4,156,686 / 11,134,43611,134,436
=37%=37%
7,122,167 / 7,122,167 / 12,446,74812,446,748
=57%=57%
8,225,332 / 8,225,332 / 15,359,74215,359,742
=54%=54%
37%
57% 54%
0%
20%
40%
60%
2008 2009 2010
Return on Operating Assets
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Return on Total Equity:Return on Total Equity:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdROE = Net profit after tax / shareholders equityROE = Net profit after tax / shareholders equity
20082008 20092009 20102010
Return on Return on Total Total EquityEquity
4,156,686 / 4,156,686 / 22,355,61422,355,614
=18%=18%
7,122,167 / 7,122,167 / 29,959,97829,959,978
=23%=23%
8,225,332 / 8,225,332 / 35,974,85735,974,857
=23%=23%
18%23% 23%
0%
10%
20%
30%
2008 2009 2010
Return on Total Equity
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Gross Profit Margin:Gross Profit Margin:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdGross Profit Margin = (Gross Profit / Net Sales) × 100Gross Profit Margin = (Gross Profit / Net Sales) × 100
20082008 20092009 20102010
Gross Gross Profit Profit MarginMargin
14,010,734 / 14,010,734 / 30,570,54030,570,540
==45.83%45.83%
18,699,809 / 18,699,809 / 41,121,50341,121,503
==45.47%45.47%
22,565,044 / 22,565,044 / 44,992,69644,992,696
==50.15%50.15%
45.83% 45.47%
50.15%
40.00%
45.00%
50.00%
55.00%
2008 2009 2010
Gross Profit Margin
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Activity RatiosActivity Ratios
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Total Assets Turnover Ratio:Total Assets Turnover Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdTotal assets turnover ratio = Net sales / Total assetsTotal assets turnover ratio = Net sales / Total assets
20082008 20092009 20102010
Total Total assets assets turnover turnover ratioratio
30,570,540 / 30,570,540 / 366,680,192366,680,192
=8.34%=8.34%
41,121,503 / 41,121,503 / 418,374,331418,374,331
=9.82%=9.82%
44,992,696 / 44,992,696 / 449,931,526449,931,526
=9.99%=9.99%
8.34
9.82 9.99
7
8
9
10
2008 2009 2010
Total Assets Turnover
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Fixed Assets Turnover Ratio:Fixed Assets Turnover Ratio:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdFixed assets turnover ratio = Net sales / Fixed assetsFixed assets turnover ratio = Net sales / Fixed assets
20082008 20092009 20102010
Fixed Fixed assets assets turnover turnover ratioratio
30,570,540 / 30,570,540 / 11,134,43611,134,436
==2.752.75
41,121,503 / 41,121,503 / 12,446,74812,446,748
==3.303.30
44,992,696 / 44,992,696 / 15,359,74215,359,742
==2.932.93
2.75
3.3
2.93
2
2.5
3
3.5
2008 2009 2010
Fixed Assets Turnover
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Market RatiosMarket Ratios
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Dividend per Share:Dividend per Share:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdDividend per share = Dividend amount / number of common Dividend per share = Dividend amount / number of common
sharesshares
20082008 20092009 20102010
Dividend Dividend per shareper share
1,615,913 / 646,3651,615,913 / 646,365
==2.502.50
2,844,004 / 711,0012,844,004 / 711,001
==4.004.00
3,127,504 / 781,8763,127,504 / 781,876
==4.004.00
2.5
4 4
0
2
4
2008 2009 2010
Fixed Assets Turnover
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Earning Per Share:Earning Per Share:
Ratio Ratio AnalysisAnalysis
Allied Bank LtdAllied Bank LtdEPS ratio = (Net profit after tax – preference dividend) / No. of EPS ratio = (Net profit after tax – preference dividend) / No. of
common sharescommon shares
20082008 20092009 20102010
EPS ratioEPS ratio 4,156,686 / 646,3654,156,686 / 646,365
==6.436.43
7,122,167 / 711,0017,122,167 / 711,001
==10.0210.02
8,225,332 / 782,1008,225,332 / 782,100
==10.5210.52
6.43
10.02 10.52
0
5
10
15
2008 2009 2010
Earning Per Share
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SWOT ANALYSISSWOT ANALYSIS
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Strengths:Strengths:
Strong financial basisStrong financial basis
Highly capable and committed Highly capable and committed management management
Fully computerized and online networkFully computerized and online network
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Weaknesses:Weaknesses:
Non-mobilization of authorityNon-mobilization of authority
Slow and lengthy working processSlow and lengthy working process
Heavy load of work on employeesHeavy load of work on employees
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Opportunities:Opportunities:
Global marketGlobal market
New domestic marketsNew domestic markets
Expansion of branch and ATM networkExpansion of branch and ATM network
AdvertisementAdvertisement
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Threats:Threats:
New entrantsNew entrants
Contraction of marketsContraction of markets
Bargaining power of customersBargaining power of customers
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ConclusionConclusion::
Highly capable management.Highly capable management.Fully computerized and online network of Fully computerized and online network of branches.branches.Allied Bank adopted bottom to top management Allied Bank adopted bottom to top management style.style.ABL has huge amount in current deposits.ABL has huge amount in current deposits.Investments have raise in 2008 and also Investments have raise in 2008 and also improved in 2009 contrast to year 2008 improved in 2009 contrast to year 2008 Increasing trend in net income.Increasing trend in net income.ABL is in the strong position to pay off its short ABL is in the strong position to pay off its short term liabilities term liabilities
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RecommendationsRecommendations
The productivity can be increased by providing proper The productivity can be increased by providing proper equipment to branches.equipment to branches.
IT problems can be solved by hiring new efficient IT IT problems can be solved by hiring new efficient IT staff.staff.
More customers can be attracted by proper More customers can be attracted by proper advertisement.advertisement.
Business can be enhanced by exploring new Business can be enhanced by exploring new business areas and opening branches there.business areas and opening branches there.
Bad debts can be decreased by lending after careful Bad debts can be decreased by lending after careful evaluation of borrower credibility.evaluation of borrower credibility.
Gross Profit margin can be increased by cutting off Gross Profit margin can be increased by cutting off un-necessary expenditures.un-necessary expenditures.
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Thank youThank you