HORIZONTAL ANALYSIS

Horizontal Analysis is a procedure in fundamental analysis in which an analyst compares ratios

or line items in a Bank's financial statements over a certain period of time. The analyst will use
his or her discretion when choosing a particular timeline; however, the decision is often based
on the investing time horizon under consideration.

This technique is also known as comparative analysis. It is conducted by setting consecutive

balance sheet, income statement or statement of cash flow side-by-side and reviewing changes in
individual categories on a year-to-year or multiyear basis.

The most important item revealed by comparative financial statement analysis is trend. A
comparison of statements over several years reveals direction, speed and extent of a trend(s).

The horizontal financial statements analysis is done by restating amount of each item or group of
items as a percentage. Such percentages are calculated by selecting a base year and assign a
weight of 100 to the amount of each item in the base year statement. Thereafter, the amounts of
similar items or groups of items in prior or subsequent financial statements are expressed as a
percentage of the base year amount. The resulting figures are called index numbers or trend
ratios.
Formula
= Current Year amount / Base Year amount * 100

BALANCE SHEET

BALANCE S HEET
Description

(Rs 000)
2007

Change
in 2007

2008

Change in
2008

2009

Change
in 2009

2010

Change in
2010

2011

Change in
2011

Cash with treasury banks

57,526,451

100

50,069,965

(13)

61,470,047

67,461,668

17

86,409,551

50

Balance with other banks

4,191,128

100

7,497,174

79

5,407,470

29

18,192,142

334

16,546,311

295

ASSETS

Lending to financial
institutions
Investments
Advances
Operating Fixed Assets
Deferred Tax Assets-Net
Other Assets
Total Assets

24,781,723

100

22,805,341

(8)

23,162,130

(7)

12,384,778

(50)

9,536,211

(62)

115,585,646
299,354,736
16,943,950

100
100
100

116,328,288
371,139,675
18,021,445

1
24
6

136,145,524
354,091,713
21,925,669

18
18
29

224,578,556
333,732,172
22,424,072

94
11
32

294,410,661
325,347,208
22,981,878

155
9
36

------------

100

2,055,609

------------

608,876

------------

1,298,403

------------

1,991,185

------------

11,740,697

100

17,154,985

46

16,905,004

44

19,746,096

68

20,836,736

77

530,124,331

100

605,072,482

14

619,716,433

17

699,817,887

32

778,059,741

47

6,079,341
59,103,350

100
100

5,194,449
44,195,886

(15)
(25)

5,147,259
35,144,823

(15)
(41)

5,045,815
45,104,849

(17)
(24)

5,879,043
49,953,251

(3)
(15)

400,974,539

100

483,560,062

21

492,036,103

23

550,645,767

37

612,980,139

53

5,996,696

100

11,993,848

200

11,989,800

200

11,985,748

200

11,317,080

189

LIABILITIES

Bills Payable
Borrowing From F.I
Deposits & Other
Accounts
S ub-Ordinate Loans
Liability Against Lease
Finance
Other liabilities
Deferred Tex Liability

------------

------------

------------

13,316,657
2,232,344

100

16,265,478
------------

22

14,461,725
------------

487,702,927
42,421,404

100
100

561,209,723
43,862,759

15

558,779,710
60,936,723

S hare capital

8,093,750

100

10,117,188

25

Reserves

10,261,958

100

15,501,513

51

Un appropriated Profit

15,653,703

100

16,604,076

34,009,411

100

42,222,777

8,411,993

100

1,639,982

(81)

Total Liability
NET ASSETS

S urplus on revaluation of
assets - net

42,421,404

100

43,862,759

-----------9

18,620,643
------------

15

44

631,402,822
68,415,065

11,128,907

38

18,959,537

85

22,187,802

24

55,914,736
8,660,477

60,936,723

-----------40

18,777,320
------------

41

29

56

698,906,833
79,152,908

12,241,798

51

12,241,798

51

21,688,637

111

24,847,019

142

42

26,250,489

68

33,534,116

114

64

60,180,924

77

70,622,933

108

8,234,141

(2)

8,529,975

44

68,415,065

61

79,152,908

87

43

30

(UBL Balance Sheet Horizontal Analysis 2007-2011)

Trend Analysis
Cash & Balances analysis:

200
150
150
100
100

87

107

117

2009

2010

50
0
2007

2008

2011

Cash

The UBLs Cash shows an increasing trend during all years. It was increased by 107 % in 2009,
117 % in 2010 and 50 % in 2011. The year 2008 shows decrease in 13 % while 2011 shows the
highest rate as compare to base year.

Balances with other Banks Analysis:

500

434

400
300
200

179

100

395

129

100
0

2007

2008

2009

2010

2011

Balances with other banks

The Balances of UBL with other banks shows a mixed trend during all years. The year 2010
represents highest percentage of 334%. While in the other years shows decreasing trends like
2008 shows 79 %, 2009 shows 29%, and 2011 shows 295% as compare to base year.

Lendings to Financial Institutions Analysis:

3

120
100
80
60
40
20
0

100

92

93
50

2007

2008

2009

2010

62

2011

Lending's to financial insitutions

The lendings to financial institutions by UBL shows decreasing trend during all years. The
percentages show 8 %, 7 %, 50% and 38 % respectively in 2008, 2009, 2010 and 2011.

Investments Analysis:

300

255

250

194

200
150

100

101

2007

2008

118

100

50
0
2009

2010

2011

Investments

The investments made by UBL increasing during all years. The year 2008 indicates an increase
of 1 %, 2009 shows 18 %, 2009 shows 94%, and 2011 shows 255 % in investments. The
percentage in 2011 as compare to base year shows highest among all years.

Advances Analysis:

140
120
100
80
60
40
20
0

124

118

111

109

2008

2009

2010

2011

100

2007

Advances

The advances made by UBL shows an increasing trend in all years as compare to base year. The
advances were increased 24 % in the year 2008, 18 % in 2009, 11 % in 2010 and 9 % in 2011 as
compare to base year. The year 2008 represents highest percentage among all years as compare
to base year.

Fixed Assets Analysis:

160
140
120
100
80
60
40
20
0

100

106

2007

2008

129

132

136

2009

2010

2011

Fixed Assets

The fixed assets of UBL show an increasing trend during all years. There was an increase of 6 %
in 2008, 29 in 2009, 32 in 2010 & 36 % in 2011; there was a very sharp increase in fixed assets
in all years as compare to base year.

Total Assets Analysis:

5

160
140
120
100
80
60
40
20
0

114

117

2008

2009

100

2007

147

132

2010

2011

Total Assets

The Total Assets of UBL shows an increasing trend in every year. The total assets are increased
14 % in 2008, 17 % in 2009 and 32% in 2010. The year 2011 represents highest percentage on
account of total assets as it was increased to 47 %.

Bills Payable Analysis:

120

100

100

97
85

85

83

2008

2009

2010

80

60
40

20
0
2007

2011

Bills Payable

The UBLs bills payable is showing an decreasing trend during all years. It represents 15 % in
2008 which is a highest rate, 15 % in 2009, 17 % in 2010 & 3 % in 2011.

Borrowings Analysis:

120

100

100

76

75

80

85

59

60
40

20
0
2007

2008

2009

2010

2011

Borrowings

The borrowings of UBL show a mixed trend. The borrowings were decreased 25 % in 2008,
41 % in 2009 & 24% in 2010 and 15 % in 2011 as compare to base year.

Deposits & Other Accounts Analysis:

180
160
140
120
100
80
60
40
20
0

121

123

2008

2009

137

153

100

2007

2010

2011

Deposits & Other Accounts

The deposits & other accounts of UBL show an increasing trend during all years. The deposits
are increased 21 %, 23 %, 37 %, & 53 % in the years 2008, 2009, 2010 and 2011 respectively.
The year 2011 shows the highest ratio of 53 %.

Other Liabilities Analysis:

160
140
120
100
80
60
40
20
0

122
100

2007

2008

140

141

2010

2011

109

2009

Other Liabilities

The other liabilities of UBL are showing an increasing trend. . The other liabilities are increased
22 %, 9 %, 40%, & 41% in the years 2008, 2009, 2010 and 2011 respectively. The year 2011
shows the highest ratio of 41%.

Total Liabilities Analysis:

160
140
120
100
80
60
40
20
0

100

2007

115

115

2008

2009

129

2010

143

2011

Total Liabilities

The total liabilities of UBL are showing an increasing trend. . The total liabilities are increased
15 %, 15%, 29%, & 43 % in the years 2008, 2009, 2010 and 2011 respectively. The year 2011
shows the highest ratio of 43 %.
8

Share Capital Analysis:

160
140
120
100
80
60
40
20
0

125

151

151

2010

2011

138

100

2007

2008

2009
Share Capital

The share capital of UBL shows an increasing trend in all years. It shows 25% in 2008, 38% in
2009, 51% in 2010 and 51% in 2011 as compare to base year. In the year 2101 and 2011, the
percentage jumped to 51% showing a significant change in the capital.

Reserves Analysis:

300

242

250
185

200

150

211

151
100

100

50
0
2007

2008

2009

2010

2011

Reserves

The reserves of UBL show an increasing trend in every year. The reserves are increased 51%,
85%, 111% & 142% in the years 2008, 2009, 2010 & 2011 respectively. The year 2011
represents highest increasing percentage of 142% as compare to base and previous years.

Un-Appropriated Profit:

250

214

200

168
142

150
100

106

2007

2008

100

50
0

2009

2010

2011

Fixed Assets

The Un-appropriated profit of UBL shows an increasing trend during all. These are increased
6%, 42%, 68 % & 114% in the year 2008, 2009, 2010 & 2011. The year 2011 shows highest
trends among all years.

Surplus Analysis:

120

100

103

98

101

2009

2010

2011

100
80
60
40

19

20
0

2007

2008

Surplus

The UBL's surplus on revaluation of assets fluctuates and shows a mixed trend during all years.
It was decreased 81 % in 2008, 2 % in 2010 & and increased 3 % in 2009 , 1 % in 2011.

10

INCOME STATEMENT
Profit And Loss Account For Five Year:
Profit And Loss Account(2007-2011)

Rs 000
2007

Description in Years
Mark up/Return/Interest Earned
41,045,543
Mark up/Return/Interest Expense
16,936,187
Net Mark up/Interest income
24,109,356
Provision against loans and advances - net
1,689,467
Provision against lending to financial institutions
--(Reversal )Additional provisioning arising/decling on account of
change
3,803,759
in Prudential Regulations
Provision against loans and advances - total
5,493,226
Provision for / (reversal of) diminution in value of investments - net -6,303
Bad debts written off directly
935,123
Total
6,422,046
Net mark-up / return / interest income after provisions
17,687,310
Non Markup/ Interest Income
Fee, Commission & Brokerage Income
5,165,066
Dividend Income
548,782
Income From Dealing in Foreign Currencies
827,328
Gain on sale of securities
849,367
Unrealised gain / (loss) on revaluation of investments
-15,755
classified as held for trading
Other Income
1,617,563
Total Non-Markup/Interest Income
8,992,351
Net Mark-up/Non Mark-up Income
26,679,661
Non-Markup/Interest Expense
Administration Expenses
13,420,977
Other provisions / write offs / reversals - net
236,281
Workers' Welfare Fund
--Other Charges
17,430
Total Non Mark-up/Interest Expense
13,674,688
Profit / Loss Before Taxation
13,004,973
Taxation
Current
5,075,600
Prior Year
442,667
Deferred
-915,884
Total
4,602,383
Profit/Loss After Taxation
8,402,590

Change in
2007

2008

Change in
2008

2009

Change in
2009

2010

Change in
2010

2011

Change in
2011

100
100
100
100
100

52,253,361
24,117,702
28,135,659
5,879,185
---

127
142
117
348
---

61,107,025
28,163,787
32,943,238
9,623,204
560,852

149
166
137
570
---

59,331,761
25,223,253
34,108,508
6,803,355
---

145
149
141
403
---

70,450,475
31,025,869
39,424,606
6,194,551
345,858

172
183
164
367
---

100

-1,369,229

(36)

---

---

---

---

---

---

100
100
100
100
100

4,509,956
2,219,815
1,367,514
8,097,285
20,038,374

82
(35218)
146
126
113

10,184,056
945,342
1,485,976
12,615,374
20,327,864

185
(14998)
159
196
115

6,803,355
204,573
996,772
8,004,700
26,103,808

124
(3246)
107
125
148

6,540,409
410,085
340,416
7,290,910
32,133,696

119
(6506)
36
114
182

100
100
100
100

6,304,927
587,989
1,819,250
254,046

122
107
220
30

5,925,082
606,347
1,213,881
629,418

115
110
147
74

6,337,745
591,017
1,653,793
158,885

123
108
200
19

6,949,191
786,496
2,078,260
518,710

135
143
251
61

100

-19,547

124

-3,006

19

-38,365

244

-43,750

278

100
100
100

1,454,729
10,401,394
30,439,768

90
116
114

3,047,849
11,419,571
31,747,435

188
127
119

1,417,557
10,120,632
36,224,440

88
113
136

2,429,346
12,718,253
44,851,949

150
141
168

100
100
100
100
100
100

15,519,634
450,390
336,999
258,321
16,565,344
13,874,424

116
191
--1482
121
107

16,608,561
642,274
397,547
64,552
17,712,934
14,034,501

124
272
--370
130
108

17,765,056
63,233
413,542
240,391
18,482,222
17,742,218

132
27
--1379
135
136

19,784,894
226,204
513,121
104,939
20,629,158
24,222,791

147
96
--602
151
186

100
100
100
100
100

6,090,351
435,072
-984,119
5,541,304
8,333,120

120
98
107
120
99

6,930,585
76,328
-2,165,099
4,841,814
9,192,687

114
18
220
105
109

6,805,506
415,136
-638,354
6,582,288
11,159,930

134
94
70
143
133

8,946,039
679,290
-902,201
8,723,128
15,499,663

131
153
99
190
184

(UBL Income Statement Horizontal Analysis 2007-2011)

Trend Analysis

11

Interest Earned Analysis:

200

172

150

149

145

2009

2010

127
100

100
50

0
2007

2008

2011

Interest Earned

The interest earned by UBL was increased during all years as compare to base year. The interest
earned is increased 27 % in 2008, 49 % in 2009, 45 % in 2010 and 72 % in 2011. The year 2011
represents highest percentage on account of interest earned as it was increase 72 %.

Interest Expensed Analysis:

200

183

166

149

142

150
100

100
50

0
2007

2008

2009

2010

2011

Interest Expensed

The interest expensed UBL was increased during all years as compare to base year. The interest
expensed is increased 42% in 2008, 66% in 2009, 49 % in 2010 and 83 % in 2011. The year
2011 represents highest percentage on account of interest earned as it was increase 83 %.

Interest Income Analysis:

12

180
160
140
120
100
80
60
40
20
0

164

100

2007

137

141

2009

2010

117

2008

2011

Interest Income

The net markup/ Interest income of United Bank limited shows an increasing trend. The interest
earned is increased 17% in 2008, 37% in 2009, 41% in 2010 and 64% in 2011. The year 2011
represents highest percentage on account of interest earned.

Provision against loans and advances Total Analysis:

570

600
500

403

348

400

367

300
200

100

100
0
2007

2008

2009

2010

2011

Provision against loans and advances

The Provision against loans & advances of United Bank limited shows an increasing trend. The
interest earned is increased 248 % in 2008, 470 % in 2009, 303% in 2010 and 267% in 2011.
The year 2009 represents highest percentage on account of interest earned.

Bad debts written off directly Analysis:

13

180
160
140
120
100
80
60
40
20
0

146

159

107

100

64

2007

2008

2009

2010

2011

Bad debts written off directly

The Bad debts written off directly shows an increasing trend during all years. It was increased
46% in 2008, 59 % in 2009, 7 % in 2010 and decreased 36 % in 2011. 2009 represents highest
rate.

Net markup/interest income after provisions Analysis:

182

200
148

150
100

113

115

2008

2009

100
50

0
2007

2010

2011

Net markup/interest income after provisions

The interest income after provisions of United Bank limited shows a mixed trend. It is increased
13 % in 2008, 15% in 2009, 48% in 2010, and 82% in 2011.

Fee, Commission & brokerage income Analysis:

14

160
140
120
100
80
60
40
20
0

122

115

2008

2009

100

2007

123

2010

135

2011

Fee, Commission & brokerage income

The Fee, Commission and brokerage income of UBL are increasing during all the years. It was
increased 22 % in the year 2008, 15 % in 2009, 23 % in 2010 and 35 % in the year 2011. The
year 2011 represents peak percentage.

Dividend income Analysis:

160
140
120
100
80
60
40
20
0

143
100

107

110

108

2007

2008

2009

2010

2011

Dividend

The dividend income of UBL was decreasing during all years. The dividend income is
decreasing 7% in the year 2008, 10% in 2009, 8% in 2010 and 43 % in 2011.

Income from Dealing in Foreign Currencies Analysis:

15

300

251

250

220

200

200
147

150

100

100

50
0
2007

2008

2009

2010

2011

Income from Dealing in Foreign Currencies

The UBLs income from dealing in foreign securities fluctuates, shows an increasing trend. It
was increased 120 % in 2008, 47 % in 2009, 100 % in 2010 and 151 % in 2011. The year 2011
represents highest percentage on account of banks income from dealing in foreign securities.

Gain on sale & redemption of securities-net Analysis:

120

100

100
74

80

61

60
30

40

19

20
0
2007

2008

2009

2010

2011

Gain on sale & redemption of securities -net

The other income of UBL fluctuates during all years as it shows a decrease trend. It was
decreased 70 % in 2008, 26 % in 2009, 81 % in 2010 and 39% in 2011 as compare to base year.

Other Income Analysis:

16

188

200

150
150
100

90

100

88

50

0
2007

2008

2009

2010

2011

Other Income

The other income of UBL shows mixed trend. It was decreased 10 % in 2008 and 12 % in 2010.
It was increased 88 % in 2009 and 50 % in 2011 as compare to base year.

Total non-markup/ Interest income Analysis:

160
140
120
100
80
60
40
20
0

116

127

100

2007

2008

2009

141
113

2010

2011

Total non -markup/ Interest income

The Total non- markup/ Interest income of UBL shows an increasing trend during all years. It
was increased 16% in 2008, 27% in 2009, 13% in 2010 and 41% in 2011. The year 2011 shows
highest income.

Total Income Analysis:

17

180
160
140
120
100
80
60
40
20
0

168

100

2007

114

119

2008

2009

136

2010

2011

Total Income

The total income of UBL shows an increasing trend. It was increased 14% in 2008, 19% in
2009, 36 % in 2010 and 68 % in 2011. The year 2011 shows highest rate.

Administration expenses Analysis:

160
140
120
100
80
60
40
20
0

132
116
100

2007

2008

147

107

2009

2010

2011

Administration expenses

The administration expense of UBL shows an increasing trend. It was increased 16 % in 2008,
7 % in 2009, 47 % in 2010 and 11 % in 2011. The year 2011 shows highest rate.

Other provisions written off Analysis:

18

272

300
250
191

200

150

100

96

100

27

50
0
2007

2008

2009

2010

2011

Other provisions written off

The Other provisions written off of UBL shows a mixed trend as compare to base year. It was
increased 91 % in 2008, 172 % in 2009. It was decreased 73% in 2010 and 4 % in 2011.

Other charges Analysis:

1600
1400
1200
1000
800
600
400
200
0

1482

1379

602
370
100

2007

2008

2009

2010

2011

Fixed Assets

The Other charges of UBL show a mixed trend as compare to base year. It was increased 1482
% in 2008, 370 % in 2009, 1379 % in 2010 and 602 % in 2011.

Total non markup/ Interest expenses Analysis:

19

160
140
120
100
80
60
40
20
0

151
130

135

2009

2010

121
100

2007

2008

2011

Total non markup/ Interest expenses

The Total non markup/ Interest expenses of UBL shows an increasing trend as compare to base
year. It was increased 21%, 30%, 35% and 51% in the years 2008, 2009, 2010 and 2011
respectively. The year 2011 represents peak percentage.

Profit before Taxation Analysis:

186

200
136

150
100

107

108

2007

2008

2009

100
50

0
2010

2011

Profit before Taxation

The profit before taxation of UBL shows an increasing trend during all years. It was increased
7% in 2008, 8% in 2009, 36% in 2010 and 86% in 2011.

Current Taxation Analysis:

20

160
140
120
100
80
60
40
20
0

120

114

2008

2009

100

2007

134

131

2010

2011

Current Taxation

The current taxation of UBL shows an increasing trend during all years as compare to base year.
It was increased 20 % in 2008, 14 % in 2009, 34 % in 2010 and 31 % in 2011. 2010 shows
highest percentage.

Prior years Taxation Analysis:

180
160
140
120
100
80
60
40
20
0

153
100

98

94

18

2007

2008

2009

2010

2011

Prior years Taxation

The prior year's taxation of UBL shows an increasing trend during all years as compare to base
year. It was increased 878.81 % in 2008, 862.02 % in 2009, 68.77 % in 2010 and 817.93 % in
2011. 2008 shows highest percentage.

21

Profit after Taxation Analysis:

184

200
133

150
100

99

2007

2008

100

109

50

0
2009

2010

2011

Profit after Taxation

The UBLs Profit after taxation shows a mixed trend during all years. The profit after
taxation is increased 9 % in 2009, 33 % in 2010, and 84% in 2011. It was decreased 1% in
2008.

22