horizonatal analysis 2011

8/2/2019 Horizonatal Analysis 2011.

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1

HORIZONTAL ANALYSIS

Horizontal Analysis is a procedure in fundamental analysis in which an analyst compares ratios

or line items in a Bank's financial statements over a certain period of time. The analyst will use

his or her discretion when choosing a particular timeline; however, the decision is often based

on the investing time horizon under consideration.

This technique is also known as comparative analysis. It is conducted by setting consecutive

balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in

individual categories on a year-to-year or multiyear basis.

The most important item revealed by comparative financial statement analysis is trend. A

comparison of statements over several years reveals direction, speed and extent of a trend(s).

The horizontal financial statements analysis is done by restating amount of each item or group of

items as a percentage. Such percentages are calculated by selecting a base year and assign a

weight of 100 to the amount of each item in the base year statement. Thereafter, the amounts of

similar items or groups of items in prior or subsequent financial statements are expressed as apercentage of the base year amount. The resulting figures are called index numbers or trend

ratios.

Formula

= Current Year amount / Base Year amount * 100


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2

BALANCE SHEET

De scri pti on 2007 Change

in 2007

2008 Change in

2008

2009 Change

in 2009

2010 Change in

2010

2011 Change in

2011

ASSETS

Cash with treasury banks 57,526,451 100 50,069,965 (13) 61,470,047 7 67,461,668 17 86,409,551 50

Balance with other banks 4,191,128 100 7,497,174 79 5,407,470 29 18,192,142 334 16,546,311 295

Lending to financial

institutions24,781,723 100 22,805,341 (8) 23,162,130 (7) 12,384,778 (50) 9,536,211 (62)

Investments 115,585,646 100 116,328,288 1 136,145,524 18 224,578,556 94 294,410,661 155

Advances 299,354,736 100 371,139,675 24 354,091,713 18 333,732,172 11 325,347,208 9

Operating Fixed Assets 16,943,950 100 18,021,445 6 21,925,669 29 22,424,072 32 22,981,878 36

Deferred Tax Asset s-Net ------------ 100 2,055,609 ------------ 608,876 ------------ 1,298,403 ------------ 1,991,185 ------------

Other Assets 11,740,697 100 17,154,985 46 16,905,004 44 19,746,096 68 20,836,736 77

Total Assets 530,124,331 100 605,072,482 14 619,716,433 17 699,817,887 32 778,059,741 47

LIABILITIES

Bills Payable 6,079,341 100 5,194,449 (15) 5,147,259 (15) 5,045,815 (17) 5,879,043 (3)

Borrowing From F.I 59,103,350 100 44,195,886 (25) 35,144,823 (41) 45,104,849 (24) 49,953,251 (15)

Deposits & Other

Accounts400,974,539 100 483,560,062 21 492,036,103 23 550,645,767 37 612,980,139 53

Sub-Ordinate Loans 5,996,696 100 11,993,848 200 11,989,800 200 11,985,748 200 11,317,080 189

Liability Against Lease

Finance------------ ------------ ------------ ------------ ------------

Other liabilities 13,316,657 100 16,265,478 22 14,461,725 9 18,620,643 40 18,777,320 41

Deferred Tex Liability 2,232,344 ------------ ------------ ------------ ------------

Total Liability 487,702,927 100 561,209,723 15 558,779,710 15 631,402,822 29 698,906,833 43

NET ASSETS 42,421,404 100 43,862,759 3 60,936,723 44 68,415,065 56 79,152,908 30

Share capital 8,093,750 100 10,117,188 25 11,128,907 38 12,241,798 51 12,241,798 51

Reserves 10,261,958 100 15,501,513 51 18,959,537 85 21,688,637 111 24,847,019 142

Un appropriated Profit 15,653,703 100 16,604,076 6 22,187,802 42 26,250,489 68 33,534,116 114

34,009,411 100 42,222,777 24 55,914,736 64 60,180,924 77 70,622,933 108

Surplus on revaluation of

assets - net8,411,993 100 1,639,982 (81) 8,660,477 3 8,234,141 (2) 8,529,975 1

42,421,404 100 43,862,759 3 60,936,723 44 68,415,065 61 79,152,908 87

BALANCE SHEET (Rs 000)

(UBL Balance Sheet Horizontal Analysis 2007-2011)


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Trend Analysis

Cash & Balances analysis:

10087

107117

150

0

50

100

150

200

2007 2008 2009 2010 2011

Cash

The UBLs Cash shows an increasing trend during all years. It was increased by 107 % in 2009,

117 % in 2010 and 50 % in 2011. The year 2008 shows decrease in 13 % while 2011 shows the

highest rate as compare to base year.

Balances with other Banks Analysis:

100

179129

434395

0

100

200

300

400

500

2007 2008 2009 2010 2011

Balances with other banks

The Balances of UBL with other banks shows a mixed trend during all years. The year 2010

represents highest percentage of 334%. While in the other years shows decreasing trends like

2008 shows 79 %, 2009 shows 29%, and 2011 shows 295% as compare to base year.

Lendings to Financial Institutions Analysis:


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100 92 93

5062

0

20

40

60

80

100120

2007 2008 2009 2010 2011

Lending's to financial insitutions

The lendings to financial institutions by UBL shows decreasing trend during all years. The

percentages show 8 %, 7 %, 50% and 38 % respectively in 2008, 2009, 2010 and 2011.

Investments Analysis:

100 101118

194

255

0

50

100

150

200

250

300

2007 2008 2009 2010 2011

Investments

The investments made by UBL increasing during all years. The year 2008 indicates an increase

of 1 %, 2009 shows 18 %, 2009 shows 94%, and 2011 shows 255 % in investments. The

percentage in 2011 as compare to base year shows highest among all years.

Advances Analysis:


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5

100124 118 111 109

0

20

40

6080

100

120

140

2007 2008 2009 2010 2011

Advances

The advances made by UBL shows an increasing trend in all years as compare to base year. The

advances were increased 24 % in the year 2008, 18 % in 2009, 11 % in 2010 and 9 % in 2011 as

compare to base year. The year 2008 represents highest percentage among all years as compare

to base year.

Fixed Assets Analysis:

100 106

129 132 136

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Fixed Assets

The fixed assets of UBL show an increasing trend during all years. There was an increase of 6 %

in 2008, 29 in 2009, 32 in 2010 & 36 % in 2011; there was a very sharp increase in fixed assets

in all years as compare to base year.

Total Assets Analysis:


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100114 117

132147

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Total Assets

The Total Assets of UBL shows an increasing trend in every year. The total assets are increased

14 % in 2008, 17 % in 2009 and 32% in 2010. The year 2011 represents highest percentage on

account of total assets as it was increased to 47 %.

Bills Payable Analysis:

100

85 85 83

97

0

20

40

60

80

100

120

2007 2008 2009 2010 2011

Bills Payable

The UBLs bills payable is showing an decreasing trend during all years. It represents 15 % in

2008 which is a highest rate, 15 % in 2009, 17 % in 2010 & 3 % in 2011.


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Borrowings Analysis:

100

75

59

7685

0

20

40

60

80

100

120

2007 2008 2009 2010 2011

Borrowings

The borrowings of UBL show a mixed trend. The borrowings were decreased 25 % in 2008,

41 % in 2009 & 24% in 2010 and 15 % in 2011 as compare to base year.

Deposits & Other Accounts Analysis:

100

121 123137

153

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011

Deposits & Other Accounts

The deposits & other accounts of UBL show an increasing trend during all years. The deposits

are increased 21 %, 23 %, 37 %, & 53 % in the years 2008, 2009, 2010 and 2011 respectively.

The year 2011 shows the highest ratio of 53 %.


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Other Liabilities Analysis:

100

122109

140 141

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Other Liabilities

The other liabilities of UBL are showing an increasing trend. . The other liabilities are increased

22 %, 9 %, 40%, & 41% in the years 2008, 2009, 2010 and 2011 respectively. The year 2011

shows the highest ratio of 41%.

Total Liabilities Analysis:

100115 115

129143

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Total Liabilities

The total liabilities of UBL are showing an increasing trend. . The total liabilities are increased

15 %, 15%, 29%, & 43 % in the years 2008, 2009, 2010 and 2011 respectively. The year 2011

shows the highest ratio of 43 %.


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Share Capital Analysis:

100

125138

151 151

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Share Capital

The share capital of UBL shows an increasing trend in all years. It shows 25% in 2008, 38% in

2009, 51% in 2010 and 51% in 2011 as compare to base year. In the year 2101 and 2011, the

percentage jumped to 51% showing a significant change in the capital.

Reserves Analysis:

100

151

185211

242

0

50

100

150

200

250

300

2007 2008 2009 2010 2011

Reserves

The reserves of UBL show an increasing trend in every year. The reserves are increased 51%,

85%, 111% & 142% in the years 2008, 2009, 2010 & 2011 respectively. The year 2011

represents highest increasing percentage of 142% as compare to base and previous years.


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Un-Appropriated Profit:

100 106

142168

214

0

50

100

150

200

250

2007 2008 2009 2010 2011

Fixed Assets

The Un-appropriated profit of UBL shows an increasing trend during all. These are increased

6%, 42%, 68 % & 114% in the year 2008, 2009, 2010 & 2011. The year 2011 shows highest

trends among all years.

Surplus Analysis:

100

19

103 98 101

0

20

40

60

80

100

120

2007 2008 2009 2010 2011

Surplus

The UBL's surplus on revaluation of assets fluctuates and shows a mixed trend during all years.

It was decreased 81 % in 2008, 2 % in 2010 & and increased 3 % in 2009 , 1 % in 2011.


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11

INCOME STATEMENT

2007 Change in

2007

2008 Change in

2008

2009 Change in

2009

2010 Change in

2010

2011 Change in

2011

Ma rk up/Return/Interest Earned 41,045,543 100 52,253,361 127 61,107,025 149 59,331,761 145 70,450,475 172

Ma rk up/Return/Interest Expense 16,936,187 100 24,117,702 142 28,163,787 166 25,223,253 149 31,025,869 183

Net Mark up/Interest income 24,109,356 100 28,135,659 117 32,943,238 137 34,108,508 141 39,424,606 164

P rovis ion against loans a nd advances - net 1,689,467 100 5,879,185 348 9,623,204 570 6,803,355 403 6,194,551 367

Provision against lending to financial institutions --- 100 --- --- 560,852 --- --- --- 345,858 ---

(Reversa l )Additional provisioning arising/decling on account of

change

in Prudential Regulations

3,803,759 100 -1,369,229 (36) --- --- --- --- --- ---

Provision against loans and advances - total 5,493,226 100 4,509,956 82 10,184,056 185 6,803,355 124 6,540,409 119

Provision for / (reversal of) diminution in value of investments - -6,303 100 2,219,815 (35218) 945,342 (14998) 204,573 (3246) 410,085 (6506)

Bad debts written off directly 935,123 100 1,367,514 146 1,485,976 159 996,772 107 340,416 36

Total 6,422,046 100 8,097,285 126 12,615,374 196 8,004,700 125 7,290,910 114

Net mark-up / return / interest income after provisions 17,687,310 100 20,038,374 113 20,327,864 115 26,103,808 148 32,133,696 182

Non Markup/ Interest Income

Fee, Commission & Brokerage Income 5,165,066 100 6,304,927 122 5,925,082 115 6,337,745 123 6,949,191 135

Dividend Income 548,782 100 587,989 107 606,347 110 591,017 108 786,496 143

827,328 100 1,819,250 220 1,213,881 147 1,653,793 200 2,078,260 251

849,367 100 254,046 30 629,418 74 158,885 19 518,710 61

Unrealised gain / (loss) on revaluation of investmentsclassified as held for trading

-15,755 100 -19,547 124 -3,006 19 -38,365 244 -43,750 278

Other Income 1,617,563 100 1,454,729 90 3,047,849 188 1,417,557 88 2,429,346 150

Total Non-Markup/Interest Income 8,992,351 100 10,401,394 116 11,419,571 127 10,120,632 113 12,718,253 141

Net Mark-up/Non Mark-up Income 26,679,661 100 30,439,768 114 31,747,435 119 36,224,440 136 44,851,949 168

Non-Markup/Interest Expense

Administration Expenses 13,420,977 100 15,519,634 116 16,608,561 124 17,765,056 132 19,784,894 147

Other provisions / write offs / reversals - net 236,281 100 450,390 191 642,274 272 63,233 27 226,204 96

Workers' Welfare Fund --- 100 336,999 --- 397,547 --- 413,542 --- 513,121 ---

Other Charges 17,430 100 258,321 1482 64,552 370 240,391 1379 104,939 602

Total Non Mark-up/Interest Expense 13,674,688 100 16,565,344 121 17,712,934 130 18,482,222 135 20,629,158 151

Profit / Loss Before Taxation 13,004,973 100 13,874,424 107 14,034,501 108 17,742,218 136 24,222,791 186

Taxation

Current 5,075,600 100 6,090,351 120 6,930,585 114 6,805,506 134 8,946,039 131

Prior Year 442,667 100 435,072 98 76,328 18 415,136 94 679,290 153

Deferred -915,884 100 -984,119 107 -2,165,099 220 -638,354 70 -902,201 99

Total 4,602,383 100 5,541,304 120 4,841,814 105 6,582,288 143 8,723,128 190

Profit/Loss After Taxation 8,402,590 100 8,333,120 99 9,192,687 109 11,159,930 133 15,499,663 184

Profit And Loss Account For Five Year:

Profit And Loss Account(2007-2011) Rs 000

Description in Years

Income From Dea ling in Foreign Currencies

Gain on sale of securities

(UBL Income Statement Horizontal Analysis 2007-2011)

Trend Analysis


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Interest Earned Analysis:

100

127

149 145

172

0

50

100

150

200

2007 2008 2009 2010 2011

Interest Earned

The interest earned by UBL was increased during all years as compare to base year. The interest

earned is increased 27 % in 2008, 49 % in 2009, 45 % in 2010 and 72 % in 2011. The year 2011

represents highest percentage on account of interest earned as it was increase 72 %.

Interest Expensed Analysis:

100

142

166149

183

0

50

100

150

200

2007 2008 2009 2010 2011

Interest Expensed

The interest expensed UBL was increased during all years as compare to base year. The interest

expensed is increased 42% in 2008, 66% in 2009, 49 % in 2010 and 83 % in 2011. The year

2011 represents highest percentage on account of interest earned as it was increase 83 %.

Interest Income Analysis:


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13

100117

137 141

164

0

20

40

6080

100

120

140

160

180

2007 2008 2009 2010 2011

Interest Income

The net markup/ Interest income of United Bank limited shows an increasing trend. The interest

earned is increased 17% in 2008, 37% in 2009, 41% in 2010 and 64% in 2011. The year 2011

represents highest percentage on account of interest earned.

Provision against loans and advancesTotal Analysis:

100

348

570

403367

0

100

200

300

400

500

600

2007 2008 2009 2010 2011

Provision against loans and advances

The Provision against loans & advances of United Bank limited shows an increasing trend. The

interest earned is increased 248 % in 2008, 470 % in 2009, 303% in 2010 and 267% in 2011.

The year 2009 represents highest percentage on account of interest earned.

Bad debts written off directly Analysis:


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14

100

146159

107

64

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011

Bad debts written off directly

The Bad debts written off directly shows an increasing trend during all years. It was increased

46% in 2008, 59 % in 2009, 7 % in 2010 and decreased 36 % in 2011. 2009 represents highest

rate.

Net markup/interest income after provisions Analysis:

100113 115

148182

0

50

100

150

200

2007 2008 2009 2010 2011

Net markup/interest income after provisions

The interest income after provisions of United Bank limited shows a mixed trend. It is increased

13 % in 2008, 15% in 2009, 48% in 2010, and 82% in 2011.

Fee, Commission & brokerage income Analysis:


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15

100

122115

123135

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Fee, Commission & brokerage income

The Fee, Commission and brokerage income of UBL are increasing during all the years. It was

increased 22 % in the year 2008, 15 % in 2009, 23 % in 2010 and 35 % in the year 2011. The

year 2011 represents peak percentage.

Dividend income Analysis:

100107 110 108

143

0

20

40

60

80

100

120

140160

2007 2008 2009 2010 2011

Dividend

The dividend income of UBL was decreasing during all years. The dividend income is

decreasing 7% in the year 2008, 10% in 2009, 8% in 2010 and 43 % in 2011.

Income from Dealing in Foreign Currencies Analysis:


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16

100

220

147

200

251

0

50

100150

200

250

300

2007 2008 2009 2010 2011

Income from Dealing in Foreign Currencies

The UBLs income from dealing in foreign securities fluctuates, shows an increasing trend. It

was increased 120 % in 2008, 47 % in 2009, 100 % in 2010 and 151 % in 2011. The year 2011

represents highest percentage on account of banks income from dealing in foreign securities.

Gain on sale & redemption of securities-net Analysis:

100

30

74

19

61

0

20

40

60

80100

120

2007 2008 2009 2010 2011

Gain on sale & redemption of securities -net

The other income of UBL fluctuates during all years as it shows a decrease trend. It was

decreased 70 % in 2008, 26 % in 2009, 81 % in 2010 and 39% in 2011 as compare to base year.

Other Income Analysis:


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17

10090

188

88

150

0

50

100

150

200

2007 2008 2009 2010 2011

Other Income

The other income of UBL shows mixed trend. It was decreased 10 % in 2008 and 12 % in 2010.

It was increased 88 % in 2009 and 50 % in 2011 as compare to base year.

Total non-markup/ Interest income Analysis:

100116

127113

141

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Total non -markup/ Interest income

The Total non- markup/ Interest income of UBL shows an increasing trend during all years. It

was increased 16% in 2008, 27% in 2009, 13% in 2010 and 41% in 2011. The year 2011 shows

highest income.

Total Income Analysis:


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18

100 114 119

136

168

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011

Total Income

The total income of UBL shows an increasing trend. It was increased 14% in 2008, 19% in

2009, 36 % in 2010 and 68 % in 2011. The year 2011 shows highest rate.

Administration expenses Analysis:

100116

107

132147

0

20

40

60

80

100

120

140

160

2007 2008 2009 2010 2011

Administration expenses

The administration expense of UBL shows an increasing trend. It was increased 16 % in 2008,

7 % in 2009, 47 % in 2010 and 11 % in 2011. The year 2011 shows highest rate.

Other provisions written off Analysis:


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19

100

191

272

27

96

0

50

100

150

200

250300

2007 2008 2009 2010 2011

Other provisions written off

The Other provisions written off of UBL shows a mixed trend as compare to base year. It was

increased 91 % in 2008, 172 % in 2009. It was decreased 73% in 2010 and 4 % in 2011.

Other charges Analysis:

100

1482

370

1379

602

0

200

400

600

800

1000

1200

1400

1600

2007 2008 2009 2010 2011

Fixed Assets

The Other charges of UBL show a mixed trend as compare to base year. It was increased 1482

% in 2008, 370 % in 2009, 1379 % in 2010 and 602 % in 2011.

Total non markup/ Interest expenses Analysis:


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20

100

121130 135

151

0

20

40

60

80

100

120

140160

2007 2008 2009 2010 2011

Total non markup/ Interest expenses

The Total non markup/ Interest expenses of UBL shows an increasing trend as compare to base

year. It was increased 21%, 30%, 35% and 51% in the years 2008, 2009, 2010 and 2011

respectively. The year 2011 represents peak percentage.

Profit before Taxation Analysis:

100 107 108

136

186

0

50

100

150

200

2007 2008 2009 2010 2011

Profit before Taxation

The profit before taxation of UBL shows an increasing trend during all years. It was increased

7% in 2008, 8% in 2009, 36% in 2010 and 86% in 2011.

Current Taxation Analysis:


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21

100

120 114

134 131

0

20

40

60

80

100

120

140160

2007 2008 2009 2010 2011

Current Taxation

The current taxation of UBL shows an increasing trend during all years as compare to base year.

It was increased 20 % in 2008, 14 % in 2009, 34 % in 2010 and 31 % in 2011. 2010 shows

highest percentage.

Prior years Taxation Analysis:

100 98

18

94

153

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011

Prior years Taxation

The prior year's taxation of UBL shows an increasing trend during all years as compare to base

year. It was increased 878.81 % in 2008, 862.02 % in 2009, 68.77 % in 2010 and 817.93 % in

2011. 2008 shows highest percentage.


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Profit after Taxation Analysis:

100 99109

133

184

0

50

100

150

200

2007 2008 2009 2010 2011

Profit after Taxation

The UBLs Profit after taxation shows a mixed trend during all years. The profit after

taxation is increased 9 % in 2009, 33 % in 2010, and 84% in 2011. It was decreased 1% in

2008.

horizonatal analysis 2011

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