Financial Ratio

Analysis Of
Standard
Chartered Bank,
Bank Al Falah and
JS Bank
For The Period 30 September 2009

Submitted To
Ms. Munazza

Date Submitted By:

December
Khawaja Naveed Haider14, 2009
073605-085
Syed Hassan Askari
073605-098
Raja Qasim Jamil 073605-
086
 Financial Ratio Analysis Of Standard Chartered
Bank, Bank Al Falah and JS Bank

Main Bank: Standard Chartered Bank

Standard Chartered
Bank
Current Ratio is 27.62
The current ratio of SCB
is less than both the
banks. It is because of
very less current assets
among our portfolio
banks and SCB could be
good for Long Term
Investments.
Bank Al Falah JS Bank
LIQUIDITY RATIOS
Current Ratio is 32.34 Current Ratio is 46.10
Ratio is greater than Its current ratio is high.
SCB but less than JS. It But overall its financial
is good sign of good position is not good than
financial position. The BAF and SCB. JS is good
bank is better than JS for short term but bad for
in Short Term and long term.
better than SCB in
Long Term.
Current Ratio

Bank Al Falah SCB JS Bank

50 JS Bank, 46.1

Bank Al Falah,
40
32.34
Current Ratio

SCB, 27.62
30

20

10

0
1
Banks

Debt To Equity Ratio is
5.97%
Debt To Equity Ratio of
SCB is low than BAF but
higher than JS.
DEBT RATIOS
Debt To Equity Ratio is Debt To Equity Ratio is
16.01% 3.6%
This ratio is very high
among banks we have The liabilities and equity
chosen. Because it has is less than the SCB and
Lower liabilities and BAF. It could be because
equity than other of new entrance in the
banks. market.
Total Debt Ratio Is 86% Total Debt Ratio Is Total Debt Ratio Is 77%
Banking is all about 93% It is all because of new
finances whether in form As described above entry in the market and
debts or credits. 86% that bank has more don’t have much assets
assets are financed by liabilities and equity and debts as compared
Debts. and as well as assets. to BAF and SCB. 77%
93% Assets are assets are finance by
financed by Debt. Debt.
Total Debt Ratio

SCB Bank Al Falah JS Bank

Bank Al Falah,
100% 93%
SCB, 86%
JS Bank, 77%
80%
Debt Percentage

60%

40%

20%

0%
1
Banks

PROFITABLITY RATIOS
EPS Ratio Is 0.003 EPS Ratio Is 1.16 EPS Ratio Is –0.57
Though EPS is low than Even the issued JS bank is showing loss in
BAF, but one more thing capital is low than JS the net profit/loss.
is that the issued capital and SCB but still it has
is very high. high EPS because of
its high net profit that
shows good financial
position.

ROA Is 0.04% ROA Is 0.13% ROA Is -1.16%

There is a great As compared to SCB, JS bank is suffering loss
difference in Net Profit BAF has high net profit due to heavy interest
ratio between SCB and compared with assets expense that the bank
BAF. But slight difference to SCB’s net profit has to pay as compared
in Total Assets. with assets. It is better to both the banks.
It is better than JS but than both the banks.
worst than BAF.
ROE Is 0.30% ROE Is 4.48% ROE Is -5.40%
It is because of Common Common stock equity Common stock equity is
Stock Equity. SCB has is about 3 times less low and bank is also
about 3 times more than SCB and net facing losses in its
Common Stock Equity profit as compared to operations due to heavy
than BAF. The ratio with equity is the reason expenses.
net income is low. for high ROE.

MARKET RATIO
Price Earning Ratio Is 23 Price Earning Ratio Is Price Earning Ratio Is 9.5
Investors are willing to 40 Investors are willing to
pay 23 rupees when EPS Investors are willing to pay 9 rupees because it’s
is increases by one pay 40 rupees which EPS is not good and will
rupee. is very high as it is take time.
growing.
Market/Book Value Is
0.91
Book value is 10 that can
be said like normal. But it
is negative here due to
slight decrease in market
value.
Market/Book Value Is Market/Book Value Is 0.4
8.1 JS’s market value is very
The book value is very low that is about 5
low that is 1 and it rupees
shows the good
financial position.
 Over All Analysis Graph

DuPont Analysis

2.5 ROE 2.23

2
1.5
1
Values

ROA
0.5 ROE 0.28 ROA 0.13 ROE 0.18
ROA 0.04 ROE
0
-0.5 Standard Bank Alfalah JS Bank
Chartered
-1
-1.5 ROA -1.16
Banks

Bank Al Falah is Better Than Standard Chartered Bank and JS Bank in

September 30, 2009.