Www.vustudents.ning.com. MBA-Finance Presentation On Allied Bank Ltd

www.vustudents.ning.comwww.vustudents.ning.com


MBA-FinanceMBA-Finance


Presentation

On

Allied Bank Ltd.


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.


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.


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


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


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:


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


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.


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.


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


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



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


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


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


(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


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


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


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.


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


Liquidity RatiosLiquidity Ratios


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


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


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


Acid Test Ratio:Acid Test Ratio:



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


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


Working Capital Ratio:Working Capital Ratio:



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


Leverage RatiosLeverage Ratios


Times Interest Earned:Times Interest Earned:



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


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


Debt Ratio:Debt Ratio:



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


Debt / Equity Ratio:Debt / Equity Ratio:



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


Debt / Tangible Net Worth Ratio:Debt / Tangible Net Worth Ratio:



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


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


Total Capitalization Ratio:Total Capitalization Ratio:


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


Profitability RatiosProfitability Ratios


Net Profit Margin:Net Profit Margin:


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


Return on Assets:Return on Assets:


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


DuPont Return on Assets:DuPont Return on Assets:


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


Operating Income Margin:Operating Income Margin:


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


Return on Operating Assets:Return on Operating Assets:


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


Return on Total Equity:Return on Total Equity:


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


Gross Profit Margin:Gross Profit Margin:


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


Activity RatiosActivity Ratios


Total Assets Turnover Ratio:Total Assets Turnover Ratio:


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


Fixed Assets Turnover Ratio:Fixed Assets Turnover Ratio:


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


Market RatiosMarket Ratios


Dividend per Share:Dividend per Share:


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


Earning Per Share:Earning Per Share:


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


SWOT ANALYSISSWOT ANALYSIS


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


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


Opportunities:Opportunities:

Global marketGlobal market

New domestic marketsNew domestic markets

Expansion of branch and ATM networkExpansion of branch and ATM network

AdvertisementAdvertisement


Threats:Threats:

New entrantsNew entrants

Contraction of marketsContraction of markets

Bargaining power of customersBargaining power of customers


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


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.


Thank youThank you

Documents

Www.vustudents.ning.com. MBA-Finance Presentation On Allied Bank Ltd