Interpretation (Horizontal)

8/10/2019 Interpretation (Horizontal)

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Habib Bank LimitedBalance Sheet

As at December 31 2010 to 2013

2010 2011 2012 2013

ASSETSCash/Balances with treasury banks 81,640,246 103,339,623 157,229,517 135,476,687

Balances with other banks 37,413,185 47,349,505 47,980,032 57,341,769

Landings to financial institutions 30,339,344 41,581,029 24,828,255 35,271,477

Investments 254,909,116 418,604,147 797,094,548 826,062,308

Advances 459,750,012 457,367,656 499,817,906 563,700,737

Operating fixed assets 16,155,290 19,167,654 23,632,324 25,706,315

Deferred tax assets 9,572,203 7,275,888 6,056,483 5,103,072

Other assets 34,920,007 44,808,703 53,835,409 66,609,013

Total Assets 924,699,403 1,139,554,205 1,610,474,474 1,715,271,378

EQUITY & LIABILITIES

LIABILITIES

Bills payable 9,775,093 13,894,502 18,943,207 19,422,316

Borrowings 40,459,860 39,473,670 196,588,138 107,864,424

Deposits and other accounts 747,374,799 933,631,525 1,214,963,700 1,401,229,814

Sub-ordinate loans 4,281,835 5,036,100 5,440,654 2,633,115

Other liabilities 26,557,045 37,931,420 41,809,119 41,687,455

Total Liabilities 828,448,632 1,029,967,217 1,477,744,818 1,572,837,124

SHARE CAPITAL & RESERVES

Share capital 10,018,800 11,020,680 12,122,748 13,335,023

Reserves 29,355,555 32,145,755 39,379,354 43,550,373

Un-appropriated profit 47,467,704 56,980,697 67,215,111 73,748,915

Total Equity 86,842,059 100,147,132 118,717,213 130,634,311

Non-controlling interest 1,212,656 1,236,290 1,227,207 1,886,116

Surplus on revaluation of assets 8,196,056 8,203,566 12,785,236 9,913,827

Total Liabilities & Equity 924,699,403 1,139,554,205 1,610,474,474 1,715,271,378


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Habib Bank LimitedProfit & Loss Account

As at December 31 2010 to 2013

2010 2011 2012 2013

MARK-UP / INTEREST INCOME AND PROVISION

Mark-up / interest earned 81,325,028 98,580,423 116,772,653 120,222,773Mark-up / interest expensed 34,330,255 42,182,220 59,012,392 65,207,109

Net mark-up / interest income 46,994,773 56,398,203 57,760,261 55,015,664

Provisions

Provision against non-performing

advances-net7,602,440 6,697,555 7,243,887 1,602,738

Provision against off balance sheet

obligations30,895 -9,141 7,015 22,427

Provision for diminution in the

value of investments-net-47,671 237,083 -483,865 -225,306

Total Provision 7,585,664 6,925,497 6,767,037 1,399,859

Net mark-up / interest income

after provisions39,409,109 49,472,706 50,993,224 53,615,805

NON MARK-UP / INTEREST INCOME

Fee, commission and brokerage

income5,432,706 6,085,970 6,785,687 8,291,686

Dividend income 343,252 434,606 490,213 759,345

Share of profit of associates and

joint venture713,678 1,081,358 1,690,100 1,785,462

Gain on sale of securities 316,823 542,118 1,360,596 2,313,847

Income from dealing in foreign

currencies

3,189,333 3,756,094 2,568,079

2 ,299,131Unrealized (loss) / gain onrevaluation of investments

classified as held-for-trading

6,409 -36,820 25,253 -12,815

Other income 2,760,230 2,919,535 3,040,178 3,886,624

Total non mark-up / interest

income12,762,431 14,782,861 15,960,106 19,323,280

NON MARK-UP / INTEREST EXPENSES

Administrative expenses 24,252,960 29,433,961 30,381,020 36,109,857

Other charges 178,700 77,588 18,285 23,175

Workers Welfare Funds 521,702 665,047 714,420 721,115

Total non mark-up / interestexpenses

25,131,510 29,934,169 31,391,573 36,805,757

Net non mark-up /interest income

(Loss)-12,369,079 -15,151,308 -15,431,467 -17,482,477

Profit Before Taxation 27,040,030 34,321,398 35,561,757 36,133,328

Taxation 10,005,650 11,988,376 12,770,159 13,106,233

Profit After Taxation 17,034,380 22,333,022 22,791,598 23,027,095


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This shows that how much amount bank are generating revenues from their main operations i.e,

from lending activities.The mark up interest earned of the bank is increasing from 2011 to 2013.

But the rate of increase in 2011 is more than 2012 and 2013 and the rate of increase in 2012 is

low as compare to previous year and the increase is very low in 2013 as compare to last two

years . This shows bank earns less from advances and other investments .

This shows that how much amount of money bank can paid to persons for using their funds .The

mark up interest Expense of the bank also increasing from 2011 to 2013 . The mark up expense

is increased by 23% from 2010 , in 2012 it increases to 40% as compare to previous year . the

mark up expenses also increases in 2013 but in less proportion to 2012 . This also shows bank

borrowing is made at higher rate of intersest as compare to lending .

The difference between the mark up interest earned and expense shows the banks net mark

up income. This is the banks income from its main operations .the banks net income is

increasing in 2011 as compare to 2010 , a slightly increase come in 2012 as compare to previous

year but the net income in 2013 is decreased by 5% as compare to last year.

Provision means the cutions against expected loss. The provision against NPLs is decreased by

12% in 2011 but this provision increased by 8 % in 2012 as compare to previous year. In2013,

provision against this is also decreased by 78% as compare to 2012 which shows good sign that

banks NPLs is decreasing.

The banks total provision is decreasing from year to year .this indicates the bankss ability to

manage its funds to. in 2011, Its provision is 9% less than from 2010 and 3% low as compare to

previous year.A major decreased in provision come in 2013 i.e, 79% less as compare to 2012

Net mark up / interest income after provision is increasing from year 2011 to 2013 . Because

banks provision on different items is decreasing this results increase the banks income.

Non mark up income of the banks shows that banks earning from secondary functions. Banks

income from Fee ,commission and brokerage income is increasing . bank charged fees against

Letter of Credit , commission from performing various functions and by providing underwriting

facilities to their customers. This income is 12% more in 2011 from 2010 , it is slightly less in

2012 and again increase in 2013 that is 22% .


4/5

Bank makes investments in different companies shares the dividend received from these is also

increasing . Because banks make investment in good companies and maintain a healthy

portfolio.

The total non mark up interest of the banks show a increase . In total income , non mark up

incomes contribution is 13% in 2011 12% in 2012 and almost 14% in 2013 . this shows banks

also active in performing other functions effectively.

Bank incure some expenses to manage the funds of people by giving salaries to its employees .

the admin cost is high in 2011, low in 2012 and again increase in 2013.

Total non mark up expenses of the bank increases but in more proportion to increase in non

mark up income. Thats why netnon mark up (loss) increased .in 2011 it was 22% and it

decrease in 2012 1nd 2013 . this shows that the banks non mark up income is less as compare to

non mark up expenses.

Profit before taxation still positive because total income of the bank is more than total expenses

of the bank and increases from 2011 to 2013 . its shows banks profitability .

Provision for taxation is also increases due to increase in profit .

The profit after taxation increases ,this shows the net profit of the banks which a bank earns by

performing different functions. The net profit is 33% more in 2011 as compare to 2010 ,there is

no increase come in 2012 but this is again increase in 2013.

BALANCE SHEET ITEMS :

The cash and balances with treasury banks shows banks liquidity position . cash in hand in

local and foreign currencies and treasury banks includes balances with state banks of Pakistan

and other state banks . this increase in 2011 by 27% and 52 % in 2012 but its decrease by 14% in

2013.

The balances with other banks means amount maintain by the bank with other financial

institutions. The balances increases in 2011 more ,minor change come in 2012 as comare to

previous year and this also increased by 20% in 2013.

Landing to financial institutions means bank give credit to other banks. This increases in 2011

and decreases in 2012 and again increases in 2013.


5/5

The investments of the banks in shares of different company increases from year to year .It

increases more in 2011 and 2012 but the percentage of increase is very low in 2013. This is a

source of revenue for banks .

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Interpretation (Horizontal)