c
   

 

  

 

 

  
  
2004 85,557,449 / 98,952,499 = 86.46%
2003 57,424,113 / 65,167,031 = 88.12%

Earning assets to total ratio tells us about the bank management efficiency to utilize the earning assets to
get return. Earning assets include loans, investment securities and money market assets. The BAL
earning assets to total assets is slightly decline as compare to previous year. But after comparison with
last year we can easily find out that total assets and earning assets are increasing because BAL is going
to expand its network.

 
 
2004 2,123,234 / 85,557,449 = 2.48%
2003 445,679 / 57,424,113 = 0.78%

Return on earning assets can help us about the measurement of profitability. Better ratio means good
utilization of earning assets by bank management to earn profit. If we compare this years ratio that is
2.48% as compare to previous year that is 0.78%. The difference shows incredible change in positive
direction. With the help of better utilization of assets and expansion of its network BAL increase its
ratio.



 
!c" 
2004 2,004,803 / 85,557,449 = 2.34%
2003 1,439,016 / 57,424,113 = 2.50%
This is a key determinant of bank profitability, for it provides an indication of management¶s ability to
control the spread between interest income and interest expense. The ratio of 2004 is 2.34% as compare
to 2003 value that is 2.50%. The ratio is decline, may be the reason behind is that continues decline in
rate of interest by SBP. Government gives more relaxation for investors to increase their investment in
different areas like SME sector etc.


#$% 
#$  
2004 3,253,416 / 98,952,499 = 3.29%
2003 1,615,777 / 65,167,031 = 2.48%

The ratio another name is funds to total assets. This ownership provides the cushion against the risk of
using debt and leverages. The higher the ratio then more cushions is there and lower cushion with lower
ratio. BAL ratio in 2004 is 3.29% as compare to 2.48% in 2003, which show the improvement and recently
more shares are floating in the market that will make this ratio even better than 2003 value.

&%%&% 
%
 2004 76,698,322 / 3,253,416 = 23.54t
2003 51,684,984 / 1,615,777 = 31.98t

The ratio of deposits time¶s capital concerns both depositors and stockholders. To some extent, it is a
type of debt/equity ratio, indicating a bank¶s debt position. As I define above, more capital implies a
greater margin of safety, while a larger deposit base gives a prospect of higher return to stockholders,
since more money is available for investment purpose. The overall this ratio is very good in last two years.
But this ratio is decrease in 2004 than 2003 from 23.54t to 31.98t respectively. Deposits are increased by
48% so more deposits are available for investments are there and equity is double approximately.

&% 
&%
2004 49,216,120 / 76,698,322 = 64.17%
2003 28,319,401 / 51,684,984 = 54.79%

Average total loans to average deposits are a type of asset to liability ratio. As we know, loans make up a
large portion of the bank¶s assets, and its principal obligations are the deposits that can be withdraw on
request. This ratio is increased from 54.79%in 2003 to 64.17% in 2004, but it¶s not a good sign from debt
point of view because it¶s indicating the increase in risk.


This ratio indicates the liquidity of the bank. well this ratio has been decreased during the year to a small
extent due to
ãBank has increased its deposits so liabilities have been increased.
ãBank has increased its assets as well to overcome the liabilities.
So overall we can say bank is the liquid enough to pay its liabilities

Current assets / current liabilities

= 22892473 / 147673570
= 0.155

loan loss coverage ratio

 This important figure is a reserve account to cover unexpected defaults on loans by borrowers. These are
generally referred to as no performing loans. The higher the no performing loan and charge-off
percentages, the higher the provision for loan losses should probably be. Consequently, this would
reduce net income and earnings per share.

Well in the year 2004 bank¶s this ratio has been increased to a great extent due to different reasons
theses are as follows.
Profit before taxation is low for the 2004 due to more expenses because bank is in expanding mode that¶s
why it¶s expenses are increasing day by day.
Provisions and bad debts also increased in the year 2004 because bank also has invested more in this
year and ad more also granted more loans.
So overall impact of these decrease the profit for the bank and also decrease the earning per share of the
bank. that is not in favor of bank because bank can be failed to cover it¶s loss if it follows the same trend.

Formula :
Provision against non-performing loasn and advances / profit (loss) before tax
= 370208 / 1653734
= 0.22

 ' $c()c 
)*++,-*++.
%/+++/ '

    

*++. *++, c*++,


     

         

Cash and balances with treasury banks  

19,708,523  8,423,399  
133.97%

Balances with other banks   

3,194,776  626,917  
409.60%

Lendings to financial institutions   

- 7,437,733   

Investments    
35,427,596  28,861,596  
22.75%

Advances     
88,838,824  49,216,120  
80.51%

Other assets    
3,588,083  1,586,890  
126.11%

Operating fixed assets   

4,298,464  2,792,710  
53.92%

     
0112+132*33 4524.12,31 
56.71%

6        

Bills payable    
2,233,671  1,208,671  
84.80%

Borrowings from financial institutions  

12,723,830  13,127,754  
-3.08%

Deposits and other accounts   

129,654,561  76,673,157  
69.10%

Sub-ordinated loans    
1,899,480  649,740  
0.00%

Liabilities against assets subject to finance lease 2,429  - 

100.00%

Other liabilities    
2,967,258  2,186,785  
35.69%

Deferred tax liabilities   

275,654  323,010  
0.00%

6    
0.42713255, 4.20342007 
148+,9

     
12*442,5, .27732*.5 
0+8419

"#$        

Share capital    
2,500,000  2,000,000  
25.00%

Reserves     
1,008,772  790,374  
27.63%

Unappropriated profit    
856,297  963,042  
-11.08%
 (:-/#$   
.2,312+34 ,271,2.03 
038,+9

Surplus on revaluation of assets   

892,412  1,004,832  
-11.19%

Minority Interest    
41,902  18,000  
132.79%

#$    
12*442,5, .27732*.5 
0+8419

#$-6$   
0112+132*33 4524.12,31 
56.71%

' $ (c 

)*++,-*++.
%;+++ '

    

*++. *++, c


     

Mark-up/return earned   
5,616,984  4,033,380  
39.26%

Mark-up/return expensed   
2,434,642  2,028,577  
20.02%

Net mark-up income    

3,182,342  2,004,803  
58.74%
Provision against non-
performing  Loans and 370,208  87,091  
325.08%

Provision for diminution in the value of investments 2,165  0  

Bad debts written off directly   

351  418  
-16.03%

372,724  87,509  325.93%


:% (
     

%  
*25+42305 024072*4. 
46.54%

< =>

<       

Fee, commission and brokerage income 

691,382  399,383  
73.11%

Dividend income    
52,539  112,017  
-53.10%

Income from dealing in foreign currencies 

218,820  106,848  
104.80%

Other income    
574,860  2,773,503  
-79.27%

Total non mark-up income   

1,537,601  3,391,751  
-54.67%

.2,.72*04 12,+42+.1 =0580*9


     

< =>?
       

Administrative expenses   
2,697,707  1,799,490  
49.92%

Other provisions     
2,000  
100.00%

Other charges    
1,700  1,875  
-9.33%
 Total non mark-up expenses   
2,699,407  1,803,365  
49.69%

%    
023.7250* ,21+1235+ 
=1,8++9

Extraordinary items / unusual items  

0 0 
0.00%

c   
023.7250* ,21+1235+ 
=1,8++9

Taxation - Current    
586,917  1,364,723  
-56.99%

Deferred (3,843) (13,671) -71.89%


    

= Prior years   
(30,000) 22,887  
-

- Deferred    
9,249  8,507  
8.72%

Total Taxes    
562,323  1,382,446  
-59.32%


   ? 

   
02+512.54 *20*,2*,. 
=.58559

Loss attributable to minority interest   

2,497    

1,087,986  2,123,234  -48.76%


     

Unappropriated profit brought forward as previous rptd 463,042  250,050   

Effect of change in accounting policy w.r.t dvd

declared     

after the balance sheet date   

500,000  250,000  
100.00%

>%%%-%6)"-- 43,2+.* 1++2+1+ 

4*8149

%  *,2337 0.2.+1 

64.30%

 6%%%  
*2+7.2341 *23,72354 
=*08,.9


 

        

Transfer to:        

statutory reserve   
(218,398) (424,647) 
-48.57%

Bonus Shares   
(500,000) (1,000,000) 
0.00%

Final Dividend paid for 2003 @ 25%   

(500,000) (250,000) 
100.00%

     
@02*052,45A @0237.23.7A 
=*78*.9

Unappropriated profit carried forward  

5132*47 43,2+.* 
=008+59
 Earnings per Share    
4.35  8.49  
-48.76%

 
B( $c()c 
)*++,-*++.
&
 %/+++/ B( $
    

(
*++. *++, *++. *++,

     

          

Cash and balances with treasury banks  

19,708,523  8,423,399  12.71% 8.51% 4.197%

Balances with other banks   

3,194,776  626,917  2.06% 0.63% 1.427%

Lendings to financial institutions   

0 7,437,733  0.00% 7.52% -

Investments    

35,427,596  28,861,596  22.85% 29.17% -

Advances     

88,838,824  49,216,120  57.29% 49.74% 7.554%

Other assets    

3,588,083  1,586,890  2.31% 1.60% 0.710%

Operating fixed assets   

4,298,464  2,792,710  2.77% 2.82% -

     

0112+132*33 4524.12,31 0++8++9 0++8++9



6         

Bills payable    

2,233,671  1,208,671  1.44% 1.22% 0.219%

Borrowings from financial institutions  

12,723,830  13,127,754  8.21% 13.27% -

Deposits and other accounts   

129,654,561  76,673,157  83.62% 77.49% 6.127%

Sub-ordinated loans    

1,899,480  649,740  1.23% 0.66% 0.568%

Liabilities against assets subject to finance lease 

2,429  0 0.00% 0.00% 0.002%

Other liabilities    

2,967,258  2,186,785  1.91% 2.21% -

Deferred tax liabilities   

275,654  323,010  0.18% 0.33% -

6    

0.42713255, 4.20342007
  

"#$         

Share capital    

2,500,000  2,000,000  1.61% 2.02% -

Reserves     

1,008,772  790,374  0.65% 0.80% -

Unappropriated profit    

856,297  963,042  0.55% 0.97% -

 (:-/#$   

.2,312+34 ,271,2.03
 

0.000%
Surplus on revaluation of assets   

892,412  1,004,832  0.58% 1.02% -

Minority Interest    

41,902  18,000  0.03% 0.02% 0.009%

#$    

12*442,5, .27732*.5
  

#$-6$   

0112+132*33 4524.12,31 0++8++9 0++8++9 

B( $ (c 

)$--&(6,02*++.
&
%;+++ B( $
      (
*++. *++,
        
Mark-up/return earned 5,616,984 4,033,380
     
Mark-up/return expensed 2,434,642 2,028,577 43.34% 50.29% -6.95%
  
Net mark-up income 3,182,342 2,004,803 138339 .48709 38419
   
Loans and
Provision against non-performing 370,208 87,091
Advances   
Provision for diminution in the value of
2,165
investments    
Bad debts written off directly 351 418
     
Lending to financial institutions written
0 0
off     
372,724 87,509 6.64% 2.17% 4.47%
     

: %%  *25+42305 024072*4. 1+8+*9 .781.9 *8.59
  
          
 



       
Fee, commission and brokerage income 691,382 399,383
    
Dividend income 52,539 112,017
      
Income from dealing in foreign
218,820 106,848
currencies     
Other income 574,860 2,773,503
      
Total non mark-up income 1,537,601 3,391,751 27.37% 84.09% -56.72%
  
.2,.72*04 12,+42+.1
        



< =>?

       
 Administrative expenses 2,697,707 1,799,490
     
Other provisions 2,000
       
Other charges 1,700 1,875
      
Total non mark-up expenses 2,699,407 1,803,365 48.06% 44.71% 3.35%
  

% 023.7250* ,21+1235+ *48,.9 5384*9 =178159
   
Extraordinary items / unusual items 0 0
    
c 023.7250* ,21+1235+ *48,.9 5384*9 =178159
  
Taxation - Current 586,917 1,364,723
      
Deferred (3,843) (13,671)
       
= Prior years (30,000) 22,887
     
- Deferred 9,249 8,507
      
Total Taxes 562,323 1,382,446 10.01% 34.28% -24.26%
   

   ? 

 02+512.54 *20*,2*,. 048,,9 1*83.9 =,,8,*9
  
Loss attributable to minority interest 2,497
     
1,087,986 2,123,234
        
Unappropriated profit brought forward as pre
463,042 250,050
reported   
Effect of change in accounting policy w.r.t dvd dec
    
after the balance sheet date 500,000 250,000
 
   
>%%%-%6)"- 43,2+.* 1++2+1+
  
          
% 
*,2337 0.2.+1
   
 6%%% *2+7.2341 *23,72354
    
          
          
          

 


        
Transfer to:
        
statutory reserve (218,398) (424,647)
     
Bonus Shares (500,000) (1,000,000)
     
Final Dividend paid for 2003 @ 25% (500,000) (250,000)
    
 @02*052,45A @0237.23.7A
       
Unappropriated profit carried forward 5132*47 43,2+.*
    
Earnings per Share 4.35 8.49