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Defining Banks in Terms of Assets
According to Pakistani Context, Banks have been divided into 4 categories depends upon the assets:1. Large Banks: total assets exceeding Rs 500 Bln2. Medium Size Banks: total assets between Rs100 Bln –
Rs500 Bln3. Small Banks: Total Assets less than Rs100 Bln4. Islamic Banks: Any bank possessing above assets (either
small, medium or large) using Islamic Operations
Number of Banks and BranchesLarge Banks Short NameNumber of Branches (2013)
Habib Bank Limited HBL 1546
National Bank of Pakistan
NBP 1342
United Bank Limited
UBL 1283
MCB Bank Limited MCB 1208
Allied Bank Limited ABL 948
Bank Alfalah Limited
BAF 423
Total 6750
Product B• Feature 1• Feature 2• Feature 3
Medium Banks Short NameNumber of Branches (2013)
Bank Al-Habib BAH 320
Standard Chartered Bank SCB 116
Askari Bank Limited Askari 281
Bank of Punjab BOP 334
Faysal Bank Limited Faysal 269
Habib Metropolitan Bank HMB 174
Meezan Bank Limited Meezan 351
NIB Bank Limited NIB 179
Soneri Bank Limited Soneri 239
Summit Bank Summit !87
JS Bank Limted JS 211
Bank of Khayeber BOK 100
Small Banks Short Name Number of Branches (2013)
Sindh Bank Sindh 200
Silk bank Limited Silk 88
Citibank Citi 3
Bank Islami Pakistan Limited
Islami 201
Al-Baraka Bank Limited Albaraka 110
Dubai Islamic Bank Limited DIB 125
HSBC Bank HSBC 10
Barclays Bank Barclays 7
Burj Bank Burj 75
Samba Bank Limited SAMBA 28
Deutsche Bank Limited DB 3
Industrial & Commercial Bank of China
ICBC 2
Bank of Tokyo BOT 1
The Comparison of Banks at Different Levels
HBL NBP UBL MCB ABL BAF0
5000
10000
15000
20000
25000
30000
35000
40000
Profit Before Taxation
PBT 2013 PBT 2012
Non Performing Loans Large Banks: • NBP has not improved its position. In 2012 NBP
nonperforming loan ratio was 12.6% now in 2013 its ratio has increased to 16.3 %
• MCB has improve its ratio from 9.7% in 2012 to 8.7 % to 2013.
• BAF,ABL and UBL have improve their nonperforming loans to great extent.
• HBL has also shown great improvement in recovering non performing loan there non performing loan has decrease to 9.2 % in 2013 from 10.9% in 2012 .
HBL NBP UBL MCB ABL BAF0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
Total Assets of Banks
BAH SCB Askari Faysal BOP
-10,000
-5,000
0
5,000
10,000
15,000
20,000
Profit Before Taxation
PBT 2013 PBT 2012
HMB NIB SoneriSummit JS BOK
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
Profit before TaxationPBT 2013 PBT 2012
BAH SCB Askari Faysal BOP0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000 Assets ComparisonAssets 2013 Assets 2012
HMB NIB Soneri Summit JS BOK0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
Total Assets2013 2012
HMB
NIB
Soneri
Summit
JS
BOK
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
CASA Comparison
2012 2013
Non Performing Loans• SCB performed very well • They reduced their non performing loans to 14.8% in 2013
from 16.2 % in 2012 . • Summit banks also reduce their non performing loans to
28.6% in 2013 from 16.2 % in 2012. • JS and BOK have also reduce their non performing loans, on
the other hand Askari bank and BOP do not perform well in recovering loan their non performing loan has increase as compare to last year.
Silk Sindh ICBC CITI Barclays HSBC
-2,000
-1,000
0
1,000
2,000
3,000
4,000
Profit Before Taxation
PBT 2013 PBT 2012
Silk Sindh ICBC CITI Barclays HSBC0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Total assets Comparison2013 2012
Samba DB FWB BOT0
5,00010,00015,00020,00025,00030,00035,00040,00045,000
Total Asset Comparison2013 2012
Silk
Sindh
ICBC
CITI
Barclays
HSBC
0.00% 20.00% 40.00% 60.00% 80.00% 100.00%
CASA Comparison
2012 2013
Non Performing Loans• The non performing loan ratio is not very high if we
compare it with medium size and large size banks .• There is great improvement as compared with previous year.• Silk bank non performing loans in 2012 was 20.0% and in
2013 its nonperforming loans is 16 % . • Al Baraka shown great improvement, their non performing
ratio in 2012 is 19.3% and in 2013 is 13.2 %. • Citi bank also improve its ratio it non performing loans in
2012 is 25.4% and in 2013 is 2.8% .
Meezan AlBaraka Islamic Banks
DIB Burj
-3,000
-2,000
-1,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Profit Before TaxationPBT 2013 PBT 2012
Meeza
n
AlBaraka
Islamic
Banks DIBBurj
0
50000
100000
150000
200000
250000
300000
350000Total Assets Comparison
Meezan
AlBaraka
Islamic Banks
DIB
Burj
0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00%
CASA Comparison2012 2013
Changes occurred in Commercial Banks
• The banks that were losing money due to inefficiencies, waste and limited product range have become highly profitable business.
• The quality of new assets has improved as tough measures are taken to evaluate new loans
• Credit Information Bureau reports provide updated information to the banks about the credit history and track record of the borrowers
• Banking Technology that was almost non-existent in Pakistan until a few years ago
• Average spread of large banks in 2013 was 5.5% as compared to 7% in 2012.
• Average spread of medium sized banks in 2013 was 4.3% as compared to 5.2% in 2012.
• Average spread of small banks in 2013 was 4.1% as compared to 5.5% in 2012.
• Average spread of Islamic banks in 2013 was 6.4% as compared to 7.6% in 2012.
Spread Rates EPSLarge Banks 2013 2012 2013 2012HBL 4.7 6.3 17.2 17NBP 6 7 2.5 7.3UBL 5.3 6.7 15.8 15.7MCB 6.3 8 21.6 20.6ABL 5.4 7.2 14.3 11.4BAF 5.2 6.2 3.5 3.4
Medium BanksBAH 3.5 4.5 5.1 5.4SCB 8.2 9.1 2.7 1.5ASKARI 4.1 5.5 -6.2 1.5BOP 2.2 1.6 1.8 1.4FAYSAL 6.1 6.7 2.3 2.8HMB 4.1 4.9 4 3.5
Small Banks 2013 2012 2013 2012
Sindh 6.8 7.7 -0.4 -0.1Silk 4.4 6.4 0.7 0.9Citibank 4.6 7--- ---HSBC 3.6 5--- ---SAMBA 3.1 5.1--- ---ICBC -1 5.8--- ---Islamic BanksMeezan 4 3.5 3.6 5.2AlBaraka -0.1 -0.7 3.5 2.5Islami 0.4 0.6 5.4 6.6DIB 0.2 0.5 10.4 12.7Burj -1.5 0.1 8.9 11.1
Large Banks Medium Banks Small Banks Islamic Banks0
5
10
15
20
25
30
35
40
Loans & Advances Market Share
2013 2012
Concluding RemarksLARGE BANKS• HBL performed very well as compared to other banks . • PBT has increased, non performing loans has reduced, CASA ratio
has improved • MCB is also performed very well they increased their CASA ratio, It
has highest CASA ratio in 2013. MCB has highest EPS in 2013.• NBP performed very poor in 2013, their PBT is very low and their
EPS is very low, their non performing loans has increased . • UBL , ABL and BAF have good performances as compared them with
their past year performance .
MEDIUM BANKS• New entrants performed very well like NIB,BOK,HMB, and
BAH • SCB performed very well as compared, their CASA ratio is
the highest in all the medium size banks. They reduced their operating cost and performed very well in CY2013.
• Askari bank , Summit bank , Soneri and JS bank had high operating cost
• Meezan bank performed very well in medium size banks • They maintain their assets and has good EPS as compared it
with other banks.
• ISLAMIC BANKS • Islamic banks performed very well in CY 2013 • Their CASA ratio has improved, their non performing
loans as reduced and their assets has increased . • Islamic banking is the new concept in banking and
people are showing great interest toward them.• Meezan bank performed very well if we compare it with
other islamic banks.
• Banking industry faces a high tax rate which affects its profitability and attractiveness for new entrants.
• Within the banking system, government discharged Rs.10.5 billion to SBP against a borrowing of Rs. 416.8 billion in the same period last year.
Latest Updates• On 20th October 2014, State Bank of Pakistan gave the
confirmation report on Merging of HSBC Bank into Meezan Bank ltd. Therefore, Meezan bank also possessed all the branch all business of HSBC Pakistan will automatically turn business of Meezan Bank.es that HSBC had before.
• Like HSBC, Europe-based Barclays Bank is also withdrawal a Pakistan marketplace for good.
• Recently, Habib Bank announced that it was negotiating with Barclays Bank for a merger of a Pakistan operations.