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S# Titles Page No.

1 Table of contents 01

2 Acknowledgement 02

3 Introduction 03

4 Functions 04

5 Services 05

6 Balance Sheets 06

7 Income Statements 07

8 Income Statement Division 08

9 Ratio Analysis Of Askari Bank Limited 09

10 Ratio Analysis Of The Bank Industry 10

11 Graphical Explanation 11

12 Vertical Analysis 17

13 Horizontal Analysis 19

14 Description Of Vertical & Horizontal Analysis 21

15 Performa Statement 22

16 Projected Statements 23

17 Executive Summary 25

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Acknowledgement

“IN THE NAME OF ALLAH, THE MOST GRACIOUS AND


MERCIFUL, THE BENIFICANT”

First of all us thankful to Allah who blessed us the potential and ability
to accomplish this project. Then we deep it a great honor and privilege
to record sense for gratitude to the respected teacher for the
construction and exuberant stage of teaching. We great fully
acknowledge the encouragement, support receive from them. The
interest, commitment patience and valuable advice given by them
remained a source of inspiration and motivation throughout the process
of project.

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INTRODUCTION

Askari Bank Ltd (formerly Askari Commercial Bank) was incorporated in Pakistan on
October 9, 1991, as a Public Limited Company. It started its operations during April 1,
1992. The bank principally deals with mainly banking, as defined in the Banking
Companies Ordinance, 1962. The Bank is listed on the Karachi, Lahore & Islamabad
Stock Exchanges and its shares are currently the highest quoted from among the new
private sector banks in Pakistan.
Askari Bank has expanded into a nation wide presence of 136 branches, and an offshore
banking Unit in Bahrain. A shared network of over 1,100 online ATMs covering all
major cities in Pakistan supports the delivery channels for customer service. As on
December 31, 2005, the bank had equity of PKR 8.6 billion and total assets of PKR 145.1
billion, with over 600,000 banking customers, serviced by our 2,754 employees.

Mission
To be the leading private sector bank in Pakistan with an international presence,
delivering quality service through innovative technology and effective human resource
management in a modern and progressive organizational culture of meritocracy,
maintaining high ethical and professional standards, while providing enhanced value to
all our stake-holders, and contributing to society.

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FUNCTIONS

 Services
Askari Bank offers a wide range of services to its customers and recognizes the
importance of efficient business delivery and providing timely solutions.

• Personal Banking
• Mortgage Finance
• Corporate & Investment Banking
• Business Finance
• ASKCAR - Car Finance
• ASKCARD
• Travelers Cheques
• Ask Smart
• Profit / Markup Rates on Retail Products

Internet banking
Askari Bank has also introduced online banking. Customers are able to view their
bank information and use their accounts for money transfer and use other features.

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Services
 Personal Finance

 ASKCARDS:

 Business Finance:

 Auto Financing:

 Travelers Cheques

 Agriculture finance

• Kissan Ever Green Finance

• Kissan Tractor Finance

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BALANCE SHEETS
OF THE YEARS ENDED
(2004 – 2007)
assets Year 2004 Year 2005 Year 2006 Year 2007
current
Assets
cash and balances with
treasury
banks 8762866 11766925 14879230 13356055
balances with other banks 4847899 5550148 7333002 3497054
lending to financial
institutions 2324839 10172242 8392950 14444143
Investments 17239156 25708194 28625915 39431005
Advances 69838392 85976895 99179372 100780162
fixed assets
operating fixed Assets 2595023 3192862 3810331 5128428
deferred tax 0 0 0 0
other Assets 1559365 2732641 3812788 5535038
107167540 145099907 166033588 182171885
Liabilities
Current
Liabilities
Bills Payable 1227093 1315680 1839077 2627051
Borrowing 13781555 10562338 14964087 17553525
Deposits & other Accounts 83318795 118794690 131839283 143036707
Non-current
Liabilities
sub-ordinate Loans 1000000 2999700 2998500 2997300
Liabilities against assets
Subject
to finance lease 14159 1459 0 0
deferred tax liabilities 526866 567217 736298 471519
other liabilities 1282980 2271393 2603113 3219796
101151448 136512477 154980358 169905898
Share
holder’s
Equity
share capital 1255848 1507018 2004333 3006499
Reserves 4317301 5862074 5814754 6948336
inappropriate income 0 0 1799979 2144810
surplus on revaluation of
assets
- net of tax 442943 1218338 1434164 166342
107167540 145099907 166033588 182171885

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INCOME STATEMENTS
OF THE YEARS ENDED
(2004 – 2007)
Year 2004 Year 2005 Year 2006 Year 2007
SALES
Mark-up/Return/Interest earned 4487206 8780698 12596921 15143241

COGS Mark-up/Return/Interest expensed 1117206 4278374 6977313 8685624


Provision against non-performing loans
and advances-net 277398 638547 1128137 3920240
Provision /(Reversal) for diminution in
the value of investment-net 38066 -36555 376 1501
Bad debts Written off directly 7 0 0 0
3054529 3900332 4491095 2535876
Other
Income Non-mark-up/interest income
Fee, commission, and brokerage income 708377 838561 1013660 1072868
Dividend income 26318 51143 109326 137079
Income from dealing in foreign currencies 180992 356218 584344 655761
Income from sale and Purchase of securities 540193 99825 112474 2361251
Unrealized loss on revaluation of
investments
classified as held for trading-net 0 0 -2308 1728
Other Income 177648 206819 321758 336809
4688057 5452898 6630349 7101372
Other
Expenses Non-Mark Up/Interest Expenses
Administrative expenses 1845179 2591985 3277353 4789536
provision against other assets-net 0 0 0 0
other charges 138 1832 6141 12051
Extra-ordinary/unusual items 0 0 0 0
2842740 2859081 3346855 2299785
Gross
Profit Profit Before Taxation 2842740 2859081 3346855 2299785
Taxation Taxation-current 876089 828774 983875 98535
-prior years 0 -188247 0 -233950
-Deferred 43611 196558 113006 -245812

Net Profit Profit After Taxation 1923040 2021996 2249974 2681012

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AMOUN T in Rs. INCOME


25000000

20000000

10333264
15000000

7474183
6120734

10000000
3277994
2842740

1923040

5000000
919700

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RATIOS ANALYSIS
OF
ASKARI BANK LIMITED
2004 2005 2006 2007
Liquidity
Current ratios 0٫001 0٫001 0٫001 0٫001
Quick ratios 0٫000 0٫000 0٫000 0٫000

Leverage
Debt to Equity 0٫17 0٫01 0٫01 0٫01
Debt to Total assets 0٫001 0٫001 0٫001 0٫001

Activity Ratio
Receivable turnover 0٫001 0٫001 0٫001 0٫001
Receivable turnover (in days) 583 654 456 432
Total asset Turnover 0٫000 0٫000 0٫000 0٫000

Profitability Ratios
Net profit margin 0٫000 0٫000 0٫000 0٫000
Return on investments 0٫000 0٫000 0٫000 0٫000
Return on equity 0٫000 0٫000 0٫000 0٫000
Gross profit Margin 0٫001 0٫000 0٫000 0٫000

Equity Multiplier 0٫18 0٫17 0٫15 0٫15

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RATIOS ANALYSIS
OF
THE BANK INDUSTRY
2004 2005 2006 2007
Liquidity
Current ratios 0٫001 0٫001 0٫001 0٫001
Quick ratios 0٫000 0٫000 0٫000 0٫000

Leverage
Debt to Equity 0٫16 0٫08 0٫07 0٫07
Debt to Total assets 0٫001 0٫001 0٫001 0٫001

Activity Ratio
Receivable turnover 0٫000 0٫001 0٫001 0٫003
Receivable turnover (in days) 827 408 429 272
Total asset Turnover 0٫000 0٫000 0٫000 0٫000

Profitability Ratios
Net profit margin 0٫000 0٫000 0٫000 0٫000
Return on investments 0٫000 0٫000 0٫000 0٫000
Return on equity 0٫000 0٫000 0٫000 0٫000
Gross profit Margin 0٫000 0٫001 0٫000 0٫000

Equity Multiplier 0٫17 0٫14 0٫13 0٫13

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GRAPHICAL EXPLAINATION
OF
RATIO ANALYSIS

CURRENT RATIO:

CURRENT RATI
The most common liquidity ratio is the current ratio, which is also the ratio of current
asset to current liabilities. It is also expressed as how many times the assets can cover the
liabilities. 1.08 1.072
Askari Bank is a developed bank but the current ratio of the bank is less than the 1.07industry 1.07
average as shown in diagram in 2004. In 2005-06-071.07 the bank has improved this
1.059
deficiency. As there is no significant deviation in bank’s ratio and the industry average,
1.06
the bank is being at better stage. Both the bank’s and the average
1.05 ratios are in line and
RATIOS

with in range suggesting that Bank’s liquidity1.05 policy is in compliance with the most of
the other banks in industry. 1.037
1.04
Quick Ratio: 1.03
1.02
1.01
2004 2005 2006
YEARS
QUI
It is also a liquidity measure but it is conservative than the current ratio because it doesn’t
involve the inventory in it. This ratio provides a more penetrating measure of the liquidity
than the current ratio. 0.25
If we see at the bank’s ratio, we find it worse and the bank being weak in position 0.21
because the analyst and experts says that, this ratio must be greater than one. But0.182
if we
0.20
compare it with the industry average, we find it in line with the industry and0.16
most of the 0.160
other banks in the industry.
RATIOS

0.15
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Debt to Equity Ratio:


DEBT TO EQUITY RATIO

0٫20 0٫16
0٫15
RATIOS

0٫08 0٫07 0٫07 Bank Ratio


0٫10
0٫05 0٫01 0٫01 0٫01 Ind. Average
0٫00
2004 2005 2006 2007
YEARS

Creditors generally want this ratio to be lower than one because the lower the ratio, the
higher the financing provided by the shareholders. If we see at the bank’s ratio it is in a
worst condition especially in 2004 (2004 ratio 15.91). It means that the bank was
provided with Rs.15.91 by creditors for financing against each Rs.1 of the shareholders.
In 2005, 2006, and 2007 the creditors provide Rs.8.33, Rs.7.19, and Rs.7.49 respectively
against each Rs.1 provided by the shareholders.
Now by comparing the Bank’s ratios with the industry we find it as satisfactory in 2004,
but have a bad position in the next three years. Most of the other banks in the industry
have a good position in 2005-06-07, because they are provided with Rs.0.94, Rs.0.93, and
Rs.0.93 respectively by the creditors against each Rs.1 of the shareholders. Thus we
conclude that Askari bank is not good at this ratio.

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Debt to Total Assets:

DEBT TO TO
This ratios shows what percentage of total assets are the company’s long term debt and
will the company will be able to pay their long term debt? As this value will be, the
company will be in strong position for long term financing.
The ratio again must be low because the higher ratio has a0.95 0.94
higher financial risk. In 2004 0.94
0.941
the Bank’s ratio is 0.941 which suggests that about 94.10% of the assets have been
financed by the debts, which shows a high financial risk. 0.94
Same is the case with 2005,
2006, and 2007 having assets financed with the debts are 92.9%, 91.5%, and 91.20% 0.929
respectively. 0.93
RATIOS
But if we compare it with the industry average we find them as in line with the most of
the other bank’s in the industry and conclude the Askari bank is in good position at this
ratio. 0.92

Receivable Turnover Ratio:


0.91
0.90
0.89
2004 2005
Y
RE
This ratio tells us that how many times the account receivable has been turned into cash.
If we see at the Askari Bank ratio in 2004 that is 0.489-too low. This shows that the Bank
3.00
is not a quality firm at its collection, but in 2005 it has improved it to 1.066 and again fall
in 2006 to 0.854 in worsen the Bank’s position in the collection process but in 2007 it has
improved it to 2.832 which suggests the Bank has improved its collection process. 2.50
Now if we compare this ratio to the industry average we find the Bank to be better in
2004 and 2006 but in a bad position in 2005 and 2007. Although bank is individually in
2.00
RATIOS

good position in 2005 and 2007 but the industry average told that bank is actually faster
in collection than the most of the banks in the industry in 2005-06-07, and is slower in
2004. 1.50
1.00 0.63
0.489
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Receivable Turnover in Days:

RECEIVEABLE T
This ratio told how many days the receivables are outstanding. In 2004, 2005, 2006, and
2007 they are outstanding for 827, 408, 429, and 272 days respectively. The credit
standard in this regard decides that for how many days should the receivables
outstanding.
1000.00
By comparing the Bank’s ratio to the industry average of 583, 653, 455, and 432 days in
2004, 2005, 2006, and 2007 respectively told that the bank is not in compliance with the827
most of the other banks in industry in 2004, 2005, and 2007. But in 2006 the bank is in
800.00
line with the most of the other banks in the industry. 653.
583.45
RATIOS
Total Assets Turnover: 600.00

400.00

200.00

0.00
2004 20
The total assets turnover shows that how much sales do the total assets generates. If we
see at the ratios we see that the bank is generating a mildly less sales than does the
TOTAL
industry. See the diagram the blue bars are less than the brown ones because the blue bars
shows the banks sales generated by the total assets.
0.10

0.08
RATIOS

0.06
0.04
0.037
0.04
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0.02
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Net Profit Margin:

It gives the firm net income per rupee of sales. In 2004 the bank’s NPM is less than the
Industry average. It shows that the Bank’s has less level of sales profitability than most of
the other firms or banks in the industry. But in the next three years the Bank NPM is
more than the average ratios suggesting high level of profit from sales than most of 0.50
the
other Banks in the Industry. 0.43
Return on Investment: 0.40

RATIOS
0.30 0.2
0.20

0.10
RETU
It measures overall effectiveness in generating profit with the available assets. The0.00Bank
ratio is very low, it means that the bank is not good at this ratio and is producing fewer
revenues by its assets. The Bank must improve it as it does in 2006 and 2007. 0.03 It has 2004
improved it from 0.020 of 2005 to 0.022 in 2006 and 2007.
But if we compare the bank ratio with the industry average we find it as good in 2004 and
2005 because the bank ratio is nearer to the industry average. The bank is0.02 best in 2004 0.02
because the bank is producing more revenues than all of the other banks in the industry.
RATIOS

In the next three years the bank produces fewer revenues than the other banks in the
industry. 0.02
0.010
0.01

0.01

0.00
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2004
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Return on Equity:

This ratio tells us the earning power on the shareholder’s equity. The higher ratio tells us
the firm’s acceptance of strong investment opportunities and effective expense
management. The Bank’s ratio are greater than the Industry average in all years showing
0.35
that the Bank accepts more investments and has an effective expense management criteria 0.32
than most of the other Banks in the Industry.
0.30
Gross Profit Margin:
0.25

RATIOS
0.20 0
0.15
0.10
0.05
0.00
This ratio tells us the profit of the firms relative to sales. It measures the efficiency of the
200
firm’s pricing their products. In banks the pricing of loans etc is being seen in this ratio.
In the first three years the Bank GPM is less than the Industry average which shows that
Bank is not relatively effective at producing and selling of loans etc. above than their
cost. In 2007 the Bank GPM exceeds the industry average suggesting that Bank produces
and sell Products (loans etc.) more effectively than most of the other banks in the
industry.

0.70 0
0.60
0.50
IOS

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0.40
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VERTICAL ANALYSIS
OF
BALANCE SHEETS
(COMMON-SIZE)
2004 2005 2006 2007

cash and balances with


treasury banks 0٫0008 0٫0008 0٫0009 0٫0007
balances with other
banks 0٫0005 0٫0004 0٫0004 0٫0002

lending to financial
institutions 0٫0002 0٫0007 0٫0005 0٫0008
investments 0٫0016 0٫0018 0٫0017 0٫0022
Advances 0٫0065 0٫0059 0٫0060 0٫0055

operating fixed Assets 0٫0002 0٫0002 0٫0002 0٫0003


deferred tax 0٫0000 0٫0000 0٫0000 0٫0000
other Assets 0٫0001 0٫0002 0٫0002 0٫0003
100 100 100 100
Bills Payable 0٫0001 0٫0001 0٫0001 0٫0001
Borrowing 0٫0013 0٫0007 0٫0009 0٫0010
Deposits & other
Accounts 0٫0078 0٫0082 0٫0079 0٫0079
sub-ordinate Loans 0٫0001 0٫0002 0٫0002 0٫0002
Liabilities against
assets
Subject to finance
lease 0٫0000 0٫0000 0٫0000 0٫0000
deferred tax liabilities 0٫0000 0٫0000 0٫0000 0٫0000
other liabilities 0٫0001 0٫0002 0٫0002 0٫0002
0٫0094 0٫0094 0٫0093 0٫0093
share capital 0٫0001 0٫0001 0٫0001 0٫0002
Reserves 0٫0004 0٫0004 0٫0004 0٫0004
inappropriate income 0٫0000 0٫0000 0٫0001 0٫0001
surplus on revaluation
of
assets- net of tax 0٫0000 0٫0001 0٫0001 0٫0000
100 100 100 100

VERTICAL ANALYSIS

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OF
PROFIT & LOSS ACCOUNTS
(COMMON-SIZE)

SALES 2004 2005 2006 2007


Mark-up/Return/Interest earned 100 100 100 100
CGS Mark-up/Return/Interest expensed 0٫025 0٫049 0٫055 0٫057
Provision against non-performing loans
and advances-net 0٫006 0٫007 0٫009 0٫026

Provision /(Reversal) for diminution in


the value of investment-net 0٫001 0٫000 0٫000 0٫000
Bad debts Written off directly 0٫000 0٫000 0٫000 0٫000
0٫068 0٫044 0٫036 0٫017
Other
Income Non-mark-up/interest income
Fee, commission, and brokerage income 0٫016 0٫010 0٫008 0٫007
Dividend income 0٫001 0٫001 0٫001 0٫001
Income from dealing in foreign currencies 0٫004 0٫004 0٫005 0٫004
Income from sale and
Purchase of securities 0٫012 0٫001 0٫001 0٫016

Unrealized loss on revaluation of


investments held for trading-net 0٫000 0٫000 0٫000 0٫000
Other Income 0٫004 0٫002 0٫003 0٫002
0٫104 0٫062 0٫053 0٫047
Other
Expenses Non-Mark Up/Interest Expenses
Administrative expenses 0٫041 0٫030 0٫026 0٫032

provision against other assets-net 0٫000 0٫000 0٫000 0٫000


other charges 0٫000 0٫000 0٫000 0٫000
Extra-ordinary/unusual items
0٫063 0٫033 0٫027 0٫015
Gross
Profit Profit Before Taxation 0٫063 0٫033 0٫027 0٫015
Taxation Taxation-current 0٫020 0٫009 0٫008 0٫001
-prior years 0٫000 -0٫002 0٫000 -0٫002
-Deferred 0٫001 0٫002 0٫001 -0٫002

Net Profit Profit After Taxation 0٫043 0٫023 0٫018 0٫018

HORIZONTAL ANALYSIS

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OF
BALANCE SHEETS
(INDEXED)
assets
current Assets 2004 2005 2006 2007
cash and balances with
treasury banks 100 1٫34 1٫70 1٫52
balances with other banks 100 1٫14 1٫51 0٫72
lending to financial
institutions 100 4٫38 3٫61 6٫21
Investments 100 1٫49 1٫66 2٫29
Advances 100 1٫23 1٫42 1٫44
fixed assets
operating fixed Assets 100 1٫23 1٫47 1٫98
deferred tax 0 0٫00 0٫00 0٫00
other Assets 100 1٫75 2٫45 3٫55
100 1٫35 1٫55 1٫70
Liabilities
Current
Liabilities
Bills Payable 100 1٫07 1٫50 2٫14
Borrowing 100 0٫77 1٫09 1٫27
Deposits & other
Accounts 100 1٫43 1٫58 1٫72
Non-current
Liabilities
sub-ordinate Loans 100 3٫00 3٫00 3٫00

Liabilities against assets


Subject to finance lease 100 0٫10 0٫00 0٫00
deferred tax liabilities 100 1٫08 1٫40 0٫89
other liabilities 100 1٫77 2٫03 2٫51
100 1٫35 1٫53 1٫68
Equity
share capital 100 1٫20 1٫60 2٫39
Reserves 100 1٫36 1٫35 1٫61
inappropriate income 0 0٫00 0٫00 0٫00
surplus on revaluation of
assets- net of tax 100 2٫75 3٫24 0٫38
100 1٫35 1٫55 1٫70

HORIZONTAL ANALYSIS

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--- ANALYSIS OF FINANCIAL STATMENTS ---

OF
PROFIT & LOSS ACCOUNTS
(INDEXED)
SALES 2004 2005 2006 2007
Mark-up/Return/Interest earned 100 1٫96 2٫81 3٫37

CGS Mark-up/Return/Interest expensed 100 3٫83 6٫25 7٫77

Provision against non-performing loans


and advances-net 100 2٫30 4٫07 14٫13

Provision /(Reversal) for diminution in


the value of investment-net 100 -0٫96 0٫01 0٫04
Bad debts Written off directly 100 0٫00 0٫00 0٫00
TOTAL CGS
REMAINING REVENUES 100 1٫28 1٫47 0٫83
Other
Income Non-mark-up/interest income
Fee, commission, and brokerage income 100 1٫18 1٫43 1٫51
Dividend income 100 1٫94 4٫15 5٫21
Income from dealing in foreign currencies 100 1٫97 3٫23 3٫62
Income from sale and
Purchase of securities 100 0٫18 0٫21 4٫37
Unrealized loss on revaluation of
investments held for trading-net 0 0٫00 0٫00 0٫00
Other Income 100 1٫16 1٫81 1٫90
100 1٫16 1٫41 1٫51
Other
Expenses Non-Mark Up/Interest Expenses

Administrative expenses 100 1٫40 1٫78 2٫60


provision against other assets-net 0 0٫00 0٫00 0٫00

other charges 100 13٫28 44٫50 87٫33


Extra-ordinary/unusual items 0 0٫00 0٫00 0٫00
100 1٫01 1٫18 0٫81
Gross
Profit Profit Before Taxation 100 1٫01 1٫18 0٫81
Taxation Taxation-current 100 0٫95 1٫12 0٫11
-prior years 0 0٫00 0٫00 0٫00
-Deferred 100 4٫51 2٫59 -5٫64
Net Profit Profit After Taxation 100 1٫05 1٫17 1٫39

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--- ANALYSIS OF FINANCIAL STATMENTS ---

HORIZONTAL AND VETICAL ANALYSIS OF


THE FINANCIAL STATEMENTS
If we look at horizontally there are 96%, 181% and 237% increase in interest earned
(sales) in 2005, 2006 and 2007, respectively as compare to 2004. But if we look at there
interest expense, so, it increases almost 40% in 2005, 78% in 2006 and 160% in 2007.
If we look the net income horizontally so, there is increase of 05%, 17% and 93% in
2005, 2006 and 2007 respectively as compare to 2004. But if we look vertically so net
income decreases by 20% in 2005, 25% in 2006 and 2007 as compare to 2004. So we can
see and can say easily that the performance of Askari bank in 2007 was very good while
there is clear decrease in their performance in 2005 & 2006.
Now come to balance sheet, if we look horizontally to investments activities of Askari
bank, it is more than double in 2007 as compare to 2004, which means that they had a lot
of investment opportunities and they availed it too. As their debt to equity ratio is very
much high, which is not a good sign, so they are slowly and tenderly lowering their debt
portion in financing activities, which is showing in their vertical analysis.
While looking horizontally, the equity portion is gone more than double in 2007 as
compare to that of 2004, while the debt portion is 70% increase in just 4 years.

PERFORMA STATMENT

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--- ANALYSIS OF FINANCIAL STATMENTS ---

Financial planning formulates the way financial goal are to be achieved. A financial is
thus a statement of what is to be done in the future. Most decisions have a long lead time,
which means they take a long time to implement. In an uncertain world, this requires that
decisions to be made far in advance of their implementation. If a firm wants to build a
company in 2010, for example, it might have to began lining up contractors and financing
in 2008, or even earlier.
There are two approaches to make the Performa statements, one, the balance sheet
approach and 2nd the percentage of sales approach.
To make the forecasted financial statements of Askari bank, I use the percentage of sales
approach. I increase the sales as well as the expenses and other income by 10%, which is
the inflation rate of Pakistan.

PERFORMA STATEMENT

HAMDARD UNIVERSITY KARACHI [ISLAMABAD CAMPUS]


222
--- ANALYSIS OF FINANCIAL STATMENTS ---

(PROFIT & LOSS ACCOUNT)


FOR THE YEAR ENDED 2008-2012
(Rupee in Thousands)
2008 2009 2010 2011 2012
Assets
Cash and Balances With Treasury
Banks 16367153 18003868 19804255 21784681 23963149
Balances With Other Banks 8066302.2 8872932.4 9760225.7 10736248 11809873
Lending to Financial Institutions 9232245 10155470 11171016 12288118 13516930
Investments 31488507 34637357 38101093 41911202 46102322
Advances 109097309 120007040 132007744 145208519 159729370
Operating Fixed Assets 4191364.1 4610500.5 5071550.6 5578705.6 6136576.2
Deferred Tax Assets
Other Assets 4194066.8 4613473.5 5074820.8 5582302.9 6140533.2

Total Assets 182636947 200900641 220990706 243089776 267398754


Liabilities
Bills Payment 2022984.7 2225283.2 2447811.5 2692592.6 2961851.9
Borrowings 16460496 18106545 19917200 21908920 24099812
Deposits and Other Accounts 145023211 159525532 175478086 193025894 212328484
Sub-ordinate Loans 3298350 3628185 3991003.5 4390103.9 4829114.2
Liabilities Against Assets Subject to
Finance Lease
Deferred Tax Liabilities 809927.8 890920.58 980012.64 1078013.9 1185815.3
Other Liabilities 2863424.3 3149766.7 3464743.4 3811217.7 4192339.5
Total Liabilities 170478394 187526233 206278856 226906742 249597416
Net Assets 12158553 13374408 14711849 16183034 17801337
Shared Capital 2204766.3 2425242.9 2667767.2 2934543.9 3227998.3
Reserves 6396229.4 7035852.3 7739437.6 8513381.3 9364719.5
Inappropriate Profit 1979976.9 2177974.6 2395772 2635349.3 2898884.2
10580973 11639070 12802977 14083275 15491602
Surplus on Revaluation of Assets- Net
of Tax 1577580.4 1735338.4 1908872.3 2099759.5 2309735.5
Total Liabilities & Owner Equity 182636947 200900641 220990706 243089776 267398754

PERFORMA STATEMENT

HAMDARD UNIVERSITY KARACHI [ISLAMABAD CAMPUS]


223
--- ANALYSIS OF FINANCIAL STATMENTS ---

(BALANCE SHEETS)
FOR THE YEARS ENDED 2008-2012

(Rupee in Thousands)
2008 2009 2010 2011 2012
Assets
Cash and Balances With Treasury
Banks 16367153 18003868 19804255 21784681 23963149
Balances With Other Banks 8066302.2 8872932.4 9760225.7 10736248 11809873
Lending to Financial Institutions 9232245 10155470 11171016 12288118 13516930
Investments 31488507 34637357 38101093 41911202 46102322
Advances 109097309 120007040 132007744 145208519 159729370
Operating Fixed Assets 4191364.1 4610500.5 5071550.6 5578705.6 6136576.2
Deferred Tax Assets
Other Assets 4194066.8 4613473.5 5074820.8 5582302.9 6140533.2
Total Assets 182636947 200900641 220990706 243089776 267398754
Liabilities
Bills Payment 2022984.7 2225283.2 2447811.5 2692592.6 2961851.9
Borrowings 16460496 18106545 19917200 21908920 24099812
Deposits and Other Accounts 145023211 159525532 175478086 193025894 212328484
Sub-ordinate Loans 3298350 3628185 3991003.5 4390103.9 4829114.2
Liabilities Against Assets Subject to
Finance Lease
Deferred Tax Liabilities 809927.8 890920.58 980012.64 1078013.9 1185815.3
Other Liabilities 2863424.3 3149766.7 3464743.4 3811217.7 4192339.5
Total Liabilities 170478394 187526233 206278856 226906742 249597416
Net Assets 12158553 13374408 14711849 16183034 17801337
Shared Capital 2204766.3 2425242.9 2667767.2 2934543.9 3227998.3
Reserves 6396229.4 7035852.3 7739437.6 8513381.3 9364719.5
Inappropriate Profit 1979976.9 2177974.6 2395772 2635349.3 2898884.2
10580973 11639070 12802977 14083275 15491602
Surplus on Revaluation of Assets- Net
of Tax 1577580.4 1735338.4 1908872.3 2099759.5 2309735.5
Total Liabilities & Owner Equity 182636947 200900641 220990706 243089776 267398754

HAMDARD UNIVERSITY KARACHI [ISLAMABAD CAMPUS]


224
--- ANALYSIS OF FINANCIAL STATMENTS ---

EXECUTIVE SUMMARY

Formerly known as Askari Commercial Bank Ltd The Group's principal activities are to
provide lending, depository and related financial services. Financial services include
credit risk management, foreign trade, treasury, corporate and merchant banking, retail
banking, electronic banking, credit cards, marketing and customer service. The Bank
operates through 150 branches.
If we look at horizontally there are 96%, 181% and 237% increase in interest earned
(sales) in 2005, 2006 and 2007, respectively as compare to 2004. But if we look at there
interest expense, so, it increases almost 40% in 2005, 78% in 2006 and 160% in 2007.
If we look the net income horizontally so, there is increase of 05%, 17% and 93% in
2005, 2006 and 2007 respectively as compare to 2004. But if we look vertically so net
income decreases by 20% in 2005, 25% in 2006 and 2007 as compare to 2004. So we can
see and can say easily that the performance of Askari bank in 2007 was very good while
there is clear decrease in their performance in 2005 & 2006.
Now come to balance sheet, if we look horizontally to investments activities of Askari
bank, it is more than double in 2007 as compare to 2004, which means that they had a lot
of investment opportunities and they availed it too. As their debt to equity ratio is very
much high, which is not a good sign, so they are slowly and tenderly lowering their debt
portion in financing activities, which is showing in their vertical analysis.
While looking horizontally, the equity portion is gone more than double in 2007 as
compare to that of 2004, while the debt portion is 70% increase in just 4 years.

HAMDARD UNIVERSITY KARACHI [ISLAMABAD CAMPUS]


225
--- ANALYSIS OF FINANCIAL STATMENTS ---

Financial planning formulates the way financial goal are to be achieved. A financial is
thus a statement of what is to be done in the future. Most decisions have a long lead time,
which means they take a long time to implement. In an uncertain world, this requires that
decisions to be made far in advance of their implementation. If a firm wants to build a
company in 2012, for example, it might have to began lining up contractors and financing
in 2010, or even earlier.
There are two approaches to make the Performa statements, one, the balance sheet
approach and 2nd the percentage of sales approach.
To make the forecasted financial statements of Askari bank, we use the percentage of
sales approach. We increase the sales as well as the expenses and other income by 10%,
which is the inflation rate of Pakistan.

HAMDARD UNIVERSITY KARACHI [ISLAMABAD CAMPUS]


226