FSA Assignment

ASKARI BANK
RATIO ANALYSIS
Type of Ratio
Liquidity Ratios
Current Ratio
Quick Ratio
Profitability Ratio
Profit before tax ratio
Net profit ratio
Return on Assets
Return on equity
Activity Ratios
Total asset turnover ratio
Fixed asset turnover ratio
Leverage Ratio
Debt to equity ratio
Debt to total asset ratio
Formulae
2010
2009
2008
CA/CL
0.97
CA-Inventory-prepaid/CL 0.13
1.22
0.17
1.26
0.15
PBT/T.I
EAT/IE
EAT/T.A
EAT/TSE
4.55%
11.42%
0.33%
6.09%
7.22%
11.48%
0.48%
7.85%
2.51%
11.02%
0.20%
3.06%
T.I/T.A
T.I/F.A
0.07
3.84
0.11
2.63
0.08
3.80
T.D/TSE
T.D/T.A
11.95
0.36
12.52
0.54
15.42
0.29
HORIZONTAL ANALYSIS OF ASKARI BANK BALANCE SHEET

Years
Cash and balances with treasury Banks
Balance with other Banks
Lending to the financial inst.
Investments
Advances
Operating fixed assets
Differed taxes
Other Assets
Total assets
LIABILITIES
Bill payments
Borrowings
Deposits and other accounts
Sub-ordinates loans
Deffered tax liabilities
Other liabilities
Total liabilities
Shares capital
Reserves
Un appropriate profit
2007 2008 2009
Surplus on revaluation of assets-net on taxes

Total liabilities and share capital
HORIZONTAL ANALYSIS OF INCOME STATEMENT
Years
2006 2007 2008
Mark up/return /interest earned
Mark up/return /interest expensed
Net markup/interest income
Provision of diminution in investment
Provision against loan and advances
Bad debts written off directly
Net markup/return /interest after provision
Non markup /interest income
Fees commission and brokerage income
Dividend income
Income from dealing foreign currencies
Gain on sales of securities
Un realized loss on revaluation of investments
Other income
Total non markup/return/interest income
Non markup/interest expenses
Administrative expense
Other provision net
Other charges
Total non markup/interest expense
Profit before taxation
Taxation
Profit after taxation
VERTICAL ANALYSIS OF BALANCE SHEET
Years
Investments
Advances
Differed taxes
Other Assets
Total assets
2006 2007 2008
LIABILITIES
Bill payments
Borrowings
Sub-ordinates loans
Deffered tax liabilities
Other liabilities
Total liabilities
Shares capital
Reserves
VERTICAL ANALYSIS OF INCOME STATEMENT
Years
2006 2007 2008
Dividend income
Un realized loss on revaluation of investments
Other income
Other provision net
Other charges
Taxation
INTERPRETATION OF HORIZONTAL ANALYSIS OF BALANCE SHEET
Horizontal Analysis of the Bank Balance Sheet has been prepared by taking the year 2007 as the base
year and the remaining years as compared to the base year. The most liquid asset of the Bank such as
cash and balances with treasury Bank has increased from the year 2008 to 2009 that is 96% in 2008 and
110% in 2009, where as other liquid assets such as balances with other Banks and lending to financial and
other institutions have shown a decreasing trend such as balances with other Banks is 90%in 2008 and
34% in 2009 and lending to financial institutions is 126% in 2008 and87% in 2009. The reason for this
declining trend might be the uncertain political and law and order situations in Pakistan. All other assets
such as mark-up accrued in local currency, rent and repayments, suspense account, stamps on hand etc
shows a increasing trend as well as fixed assets, advances and investment also have shown a positive
trend. The overall effect is increased in total assets. Liabilities especially current liabilities have shown a
significant increase in 2008 to2009. Bills payable increases from 76% in 2008 to 107% in 2009 and
similarly Borrowings from 144% to 160% and Deposits and other accounts from 102% to122%. This
increase in current liabilities depicts that the Bank is performing its operations successfully. Percentage of
sub-ordinated loans almost same in both theyears. Other liabilities also increase from 139% to 167%. In the
end the net assets increased from 108% to 118%. Soneri Bank Limited shows progress in all fieldsincluding
the financial position due to this the market share of Soneri Bank also increases
INTERPRETATION OF HORIZONTAL ANALYSIS OF INCOME STATEMENT
Horizontal Analysis is done by taking the year 2007 as the base year and the remaining years of the bank
income statement when compared with the years 2008and 2009 shows the following results the net markup interest income is 152% for 2008 and 141% for 2009 the percentage shows a negative trend the income
decreases due to the increase in interest expense for the bank this interest is paid by the bank on different
deposit offered to the public. Non mark-up interest income also decrease from 105% to 82% the non markup interest income is a major source of the bank income and includes fee, commission, dividend income,
income for dealing in foreign currencies and other incomes. There is increase in interest expense as
compared to 2008 i.e. in 2008 the interest expense is 151% and 161% in 2009. Profit after taxations 70% in
2008 and decreased in 2009 to 15% which is much lesser as compared to 2008. So the overall profit for the
bank increases from 68% to 73% the major source of increase in banks profit in 2009 is increase in
unappreciated profit brought forward, transfer from surplus on revaluation of fixed assets-net of tax.
INTERPRETATION OF VERTICAL ANALYSIS OF BALANCE SHEET
The financial position of the Soneri Bank is continued to be excellent. The Vertical Analysis of the Balance
Sheet of Soneri Bank shows fluctuation in its assets and liabilities but also shows a positive trend. When
different items of the Balance Sheet are compared with total assets the following results is obtained. The
cash and balance ratio is 7.6% in 2007 and 6.9% and 6.8% in 2008 and 2009, balances with other banks
shows the negative trend and decreases from 5.7% to 4.8% in 2008 and 1.6% in 2009,similarly lending to
financial institution also shows a negative trend. The advances were 52.2% in 2007 and increased in 2008
to 58.8% and then decreased in 2009 to51.1%. The Vertical Analysis of the fixed assets shows the similar
trend, 2.8% in2007 and increased in 2008 to 3.9% and then decreased in 2009 to 3.5%, the increase in
advances in 2008 was due to the increase in loans, cash credits and running finance. Bills payable as the
percentage of current assets is 2.1% in 2007 and 1.5% in 2008 but slightly increases in 2009 to 1.6%, the
increase is due to increase bills payable in Pakistan while outside the Pakistan there are no bills payable.
Borrowing increases from 7.6% in 2007 to 14.4% in 2008 and then decreases to 9.8% in 2009, the increase
in 2008 was due to the increase in borrowing outside the Pakistan. As compared to2007 the deposits
decrease in 2008 from 78.3% to 76.1% but increase in 2009 to77.2%, the reason for this increase in
deposit is increase in saving and current deposits. Other liabilities also have shown an increase from 1.3%
to 1.6% in 2008 and1.7% in 2009.Shared holders Equity is 8.1% in 2007 and it increases in 2008 to 8.6%
and then decreases to 7.5% in 2009. However the overall trend is positive and strengthens the banks
financial position
I N T E R P R E TAT I O N O F V E R T I C A L A N A LY S I S O F I N C O M E S TAT E M E N T
The vertical Analysis of the Income Statement indicates that the Net Mark-up for the Soneri Bank is
favorable and increases from 64% to 71% and then decreases to 70%in 2009, the increase is due to the
higher interest rate this is a positive trend because a bank principle revenue source is usually interest from
loans and interest. Total non-mark-up interest income as a percentage of profit shows a decreasing trend
and decreases from 92% to 70% in 2008 to 58% in 2009, usually falling interest rates are positive for a
banks interest and because of this bank profit increases. Taxation for the bank increase from 2007 to 2009
Soneri Bank has already achieved its target which is settled done by the higher authorities of the bank. The
bank income statement shows that the bank net income for the year 2009 has increased a s compared to
previous year.
The soneri bank has achieved broad based growth in non-interest income during the year just ended with
all categories but mortgage banking income showing improvements,
MUSLIM COMMERCIAL BANK

RATIO ANALYSIS
Type of Ratio
Liquidity Ratios
Current Ratio
Quick Ratio
Profitability Ratio
Profit before tax ratio
Net profit ratio
Return on investment
Return on equity
Activity Ratios
Total asset turnover ratio
Fixed asset turnover ratio
Leverage Ratio
formula
2010
2009
2008
CA/CL
0.92
CA-Inventory-prepaid/CL 0.92
0.99
0.89
0.88
0.87
PBT/T.I
EAT/IE
EAT/T.A
EAT/TSE
55.91%
44.86%
3.25%
27.35%
55.91%
54.60%
3.60%
31.49%
70.16%
67.03%
4.065
37.66%
T.I/T.A
T.I/F.A
0.11
3.17
0.10
2.65
0.09
2.35
Debt to equity ratio

Debt to total asset ratio
T.D/TSE
T.D/T.A
6.3
0.86
6.59
0.86
6.43
0.86
HORIZONTAL ANALYSIS OF BALANCE SHEET

Years
ASSETS
2006
2007
2008
2009
2010
100%
37%
67%
67%
163%
100%
348%
159%
199%
309%
100%
110%
-90%
-59%
-70%
Investments
100%
-9%
36%
39%
140%
Advances
100%
10%
21%
45%
40%
100%
11%
96%
110%
220%
Differed taxes
100
-10%
Other Assets
100%
102%
227%
262%
321%
Total assets
100%
15%
37%
53%
70%
CASH
LIABILITIES
Bill payments
100%
-17%
22%
23%
-4%
Borrowings
100%
-13%
-17%
44%
63%
100%
12%
27%
44%
60%
Sub-ordinates loans
100%
0%
-70%
Deferred tax liabilities
100%
-63%
171%
Other liabilities
100%
30%
36%
148%
115%
Total liabilities
9%
100%
9%
9%
40%
59%
Shares capital
100%
28%
47%
47%
62%
Reserves
100%
84%
153%
174%
186%
100%
2331
%
79%
4256
%
14%
7378%
Surplus on revaluation of assets-net on taxes 100%
2526
%
-4%
75%
100%
60%
COMMENTS ON HORIZONTAL ANALYSIS OF BALANCE SHEET

TOTAL ASSETS
Total assets of Muslim Commercial Bank of Pakistan have increased from Year 2006 to year2010. As
compared to 2006 In Year 2007 there is increase of 15 % in total assets of the bank, this increase due to
both local currency current account and local currency deposit account with the treasury banks maintain
with SBP. The other reason of this increase is total assets is due to increase the Lending to financial
institution is 110% lending include call money lending and repurchase agreement .Advances also increase
10% in the form of cash credit, running finance and in the form of loans and other assets also increase by
102% In year 2007 total asset increase by 37% as compared to 2006 and 22% increase as compared to
2007. This increase is because of 67% increase in cash and balances with treasury banks, 159% increase
in balances with other banks. The other reason of this increase in total assets increase in 21% Advances
as compared to 2006 and 11% increase as compared to 2007 due to increase in loans, cash credits and
running finance .Investment increase by 36% is 2008 as compared to 2006 due to major increase in market
treasury bills. Fixed assets also increase in 2008 is 96% as compared to 2006 due to capital work in
progress and property and equipment ,other assets also increase 227% in 2008 as compared to 2006 and
this percentage increase is 125% in 2007 this major increase due to accrued income in local currency and
accrued income in foreign currencies.
In year 2009 total assets increase is 53% as compared to 2006 and this major increase due to 67%
increase in both local and foreign currency cash and balances with the treasury banks , other assets
increase in 262% in 2009 as compared to 2006 this major increase due to accrued income in local
currency and accrued income in foreign currencies .Investment also increase is 39% due to increase in
market treasury bills ,fixed assets also increase in 2009 is 110% as compared to 2006 due to capital work
in progress and property and equipment.
Advances also increase 45% in the form of cash credit, running finance and in the form of loans. In year
2010 total assets increase is 70% as compared to 2006.This major increase due to 163% increases in
local and foreign currency cash and balance with treasury bank in hand. Investment increase 140% in 2010
as compared to 2006 due to major increase is market treasury bills and Pakistan investment bonds. Fixed
assets also increase in 2010 is 220% as compared to 2006 due to capital work in progress and property
and equipment. lending decrease 70% as compared to base year, Advances are also increase 40% in the
form of cash credit ,running finance and in the form of loans ,other asset also increase 321% in 2010 as
compared to 2006 this major increase due to accrued income in local currency and accrued income in
foreign currencies.
TOTAL LIABILITIES
As compared to 2006 in year 2007 total liabilities have increased 9% because other liabilities increase
30% in 2007 although 17% bill payable decreased. Borrowing decrease by 13%. These bill payable in
Pakistan and outside Pakistan. These borrowings include borrowings from SBP. 12% increase in deposits
and other accounts due to major increase in fixed, saving, current accounts remunerative and nonremunerative. In year 2008 total liabilities have increased 9% as compared to 2007 and as compared to
2008 there is no increase. 44% increase borrowing as compared to 2009 these borrowing include secured
and unsecured This is because of secured borrowings from the SBP under export refinance scheme and
long term financing under export oriented While call borrowings (unsecured) also increased significantly
projects have increased, deposit and other account 27% increase as compared to 2006 deposit include
customers deposit and other financial institution deposit and other liabilities 36% increase.
In year 2009 total liabilities have increased by 40% as compared to base year and this increase 31 %more
than as compared to 2008 this major increase due to 23% bill payable increase These bills are payable in
Pakistan and outside Pakistan, deposit and other account 44% increase as compared to 2006 due to
customers deposit and other financial institution deposit are increase and other liabilities 148% increase as
compared to 2006 In year 2010 total liabilities also increase 59% as compared to base year and this
increase19% more than as compared to 2009 due to major increase in 63% in borrowing, the bank has
entered into agreement with SBP with extending export finance to customers .As per the terms of
agreement, the bank has granted SBP the right to recover the outstanding amount from the bank at the
date of maturity of finance direct debiting the current account maintained by the bank with SBP. Deposit
and other account 60% increase as compared to 2006 due to customers deposit and other financial
institution deposit are increase and other liabilities 115% increase as compared to 2006.
TOTAL SHARE CAPITAL
As compared to 2006 the Share capital refers to the portion of a Bank's equity that has been obtained by
trading stock to a shareholder for cash or an equivalent item of capital value. The share capital of year
2007 Muslim Commercial Bank of Pakistan shows increasing trend this 28% increase due to reserve
increase 84% and inappropriate profit increase 2526%
In year 2008 share capital increase 47 % as compared to 2006. This increase is 19% more than in 2007,
reserve also increase 153%. Major change occur in inappropriate profit which is increase by 2331% more
than in 2006, Also an increase of 79 % of surplus on revaluation of assets-net. In 2009 increase in share
capital is 47% as compared to 2006, due to increase in reserve 174% and major increase in inappropriate
profit by 4256% as compared to base year, this increase is 1925% more than in 2008.In 2010 share capital
increase 62% as compared to 2006; this increase is due to increase in share capital issued for cash and as
bonus shares, increase in reserve186% and inappropriate profit 7378%.
HORIZONTAL ANALYSIS OF INCOME STATEMENT

Years
2006
100%
2007
45%
2008
79%
2009
125%
2010
190%
100%
63%
183%
315%
469%
100%
42%
60%
90%
139%
-100%
-22%
106%
2711% 1500%
- -18%
138%
7%
366%
-83%
3411%
50%
76%
103%

100%
- 100%
100%
3870
%
44%
100%
-13%
12%
1%
-2%
100%
-6%
8%
20%
36%
69%
32%
28%
-4%
Dividend income
100%
100%
30%
30%
37%
-36%
100%
30%
73%
-14%
-11%
687%
-21%
-32%
Un realized loss on revaluation of investments -
Other income
100%
-47%
100%
-48%
100%
-8%
11%
7%
4%
100%
0%
22%
17%
56%
Other provision net
--100%
16%
5%
32%
196%
Other charges
100%
-63%
202%
357%
286%
100%
0%
-10%
26%
63%
100%
42%
64%
68%
63%
Taxation
100%
55%
47%
58%
87%
100%
36%
71%
72%
74%
COMMENTS ON HORIZONTAL ANALYSIS OF INCOME STATEMENT

As compared to 2006 In year 2007 profit increase by 36% as compared to 2006 .This major change due
to Mark-up /interest earned are increase 45% in 2007 as compared to 2006 and this increase due to
increase in loans and advances, deposit with customers and financial institution and on securities
purchased under resale agreements .
Total interest income are decrease 8% due to Fee, Commission and brokerage income decrease 6%,
Other income decrease 47% in year 2007 as compared to 2006 dividend income increase 69% and
income from dealing in foreign currencies 30% and this increase due to rent on property, profit on sale of
property and equipment. Net markup/interest income is increased by 42% while interest expense have
increased by 63% due to increase in deposits interest expense, on securities sold on repurchase
agreement, on long term another short term borrowings, on securities sold under repurchase agreements.
Profit before taxation increase 42%, taxes increase by 55%. Profit after tax has increase 36% in this year.
In year 2007 profit increase by 71% as compared to year 2006. This increase in profit is35% greater than in
2007. This major change due to Mark-up/interest earned increase 79%as compared to 2006 and 34%
increase to 2007 due to loans and advances from customers and financial institutions and on investment in
available for sale securities and associates, on deposits with financial institutions, on discount income and
on securities purchased under resale agreements.Net markup/interest income is increase by 60% which is
18% more than in 2007 while interest expense also increase 183% due to securities sold under repurchase
agreement, short term borrowing and long term borrowing . Provision against loans advances decrease
138% as compared to year 2006. Interest income after provision is also increase 50% in this year. Other
income decrease 48% in 2008 as compared to 2006 because
In 2008 profit on sale of property and equipment are decreases. Total interest income 11% increase as
compared to 2006 due to gain on sale of securities increase 73%, fee, commission and brokerage income
and dividend income are increase , total interest expense decrease 10% in this year .Profit before taxation
increase 64% as compared to 2006 .This increase is 22% more than in 2007. Taxes increase by 47%.
Profit after tax has increase 71%. Mark-up/interest earned increase 125 % in 2009 this increase due to
increase in interest earned on loans and advances from customers and financial institutions, and interest
earned on investment .Net markup/Interest income increased 90% as compared to 2006 while interest
expense increase 315% due to major increase in interest expense on deposits, on securities sold under
repurchase agreements and on long term borrowings. In this year other income also increase due to rent
on property, profit on sale of property and equipment Total income increase 7% as compare to 2006 this
change due to increase fee, commission and brokerage income is 20% and dividend income is 28%
increase, income from dealing in foreign currencies increase 37% Profit before taxation increased by 68%
as compare to 2006.Taxes increase by 58%. Profit after taxation is increase by 72%.
In year 2010 Mark-up/interest earned increase 190 % in this year this increase due to increase in interest
earned on loans and advances from customers and financial institutions and interest earned on
investment .Net markup /Interest income increased 139% as compared to 2006 .while interest expense
increase 469% due to major increase in interest expense on deposits, on securities sold under repurchase
agreements and on long term borrowings. Total income increase 4% as compare to 2006 this increase due
to increase fee commission and brokerage income is 36% and dividend income is 4% decrease, income
from dealing in foreign currencies decrease 36%.Profit before taxation increased by 63% as compare to
2006. Taxes increased by 87%. Profit after taxation increase by 74%.
VERTICAL ANALYSIS OF BALANCE SHEET
Years
ASSETS
2006
2007
2008
2009
2010
8%
9%
10%
9%
8%
0%
2%
1%
1%
1%
3%
6%
0%
1%
1%
Investments
23%
19%
28%
22%
33%
Advances
60%
58%
53%
59%
50%
3%
3%
4%
4%
4%
CASH
Differed taxes
0%
0%
Other Assets
2%
3%
4%
4%
5%
Total assets
100%
100% 100% 100% 100%
Bill payments
3%
2%
3%
2%
2%
Borrowings
9%
7%
10%
5%
9%
LIABILITIES
77%
Sub-ordinates loans
75%
0% 0%
71%
74%
72%
Deferred tax liabilities
0%
0%
1%
Other liabilities
3%
3%
3%
5%
3%
Total liabilities
86%
87%
87%
88%
92%
2%
2%
1%
1%
7%
8%
8%
8%
Shares capital
Reserves
1%
4%
0%
2%
3%
2%
1%
2%
2%
2%
1%
2%
100%
100% 100% 100% 100%
COMMENTS ON VERTICAL ANALYSIS OF BALANCE SHEET

TOTAL ASSETS
Here Total Assets includes: Current Assets + Fixed Assets + Other Assets. Where Current Assets include:
All assets excluding Fixed Assets and Other Assets Current assets of the bank has same in 2006 and 2007
is 94% because cash and balance with treasury bank and balance with other banks has increase in 2007.
Investment are decrease in 2007 but lending to financial institution increase in this year and advances
are decrease 2% in this year If current assets fall short more than this in future, then the bank will have to
scramble for other sources of short-term funding, either by taking debt.
In 2008 currents assets are decrease because balance with other banks and advances are decrease but
in this way cash utilized in purchasing operating fixed assets are 1% increase as compared to 2007 fixed
asset are increase is due to increase in capital work-in-progress, property and equipment. Fixed assets are
the long-term base of the banks operation strategy, represented by all the equipment, facilities, IT
infrastructure and long-term contracts the bank has invested in to conduct business. These assets are the
revenue generators, which together form the base from which the company functions from week to week.
So these are also well handled by the bank.
In 2009 and 2010 current assets are also decrease due to shortage of cash and balance with treasury
bank and balances with others banks but in the other hand cash utilized to purchase other asset This
increase in other assets is due to increase in Income / mark-up accrued in local currency and income /
mark-up accrued in foreign currency
TOTAL LIABILITIES
Total liabilities of the MCB have decreased in year 2007 as compared to 2006 but this decrease is not too
much high. In year 2008 total liabilities have decreased because in this year deposit are decrease Money
deposited with a bank becomes a liability of the bank, because the bank has an obligation to pay the
depositor the money deposited; usually on demand, although bill payable, borrowing slightly increase. (The
money deposited is an asset for the depositor; but this asset will not be recorded by the bank because it is
not the bank's asset. This shows that banks need more debt from other financial institutions from 2006 to
2008 especially.
Total liabilities have sustained in 2009 as compared with 2008. This increase is due to increase in others
liabilities, deposits. Borrowings from financial institutions decrease. While these borrowings have been
made from SBP for providing financing facilities to customers for import of machinery, plant, equipment the
bank has entered into agreement with the SBP for extending export finance to customers. And these bills
are payable in Pakistan and outside Pakistan. However there is no major increase found in the banks
liabilities portion. Liabilities increase also shows that banks need more funds in these years to complete its
higher operational activities and year 2010 total liabilities also decrease because in this year bill payable
and borrowing are decrease and deposit are slightly increase
OWNERS EQUITY OR SHARE CAPITAL
Share capital or issued capital or capital stock refers to the portion of a company's equity that has been
obtained (or will be obtained) by trading stock to a shareholder for cash or an equivalent item of capital
value. Share capital has increase from 2006 to 2007 this increase is due to inappropriate profit are increase
, in 2008 share capital are sustained due to reserve are increase.
In 2009 share capital are decreases because reserve and inappropriate profit not increased in the
year2010 share capital are sustained due to inappropriate profit reserves are stable not increasing neither
decreasing.
VERTICAL ANALYSIS OF INCOME STATEMENT
Years
2006
76%
-12%

64%
-
8.5%
2007
84%
2008
84%
2009
87%
2010
90%
-15%
-21%
-25%
-28%
69%
0.65
%
5.44
63%
0.46%
62%
8.81%
62%
3.55%
13.13
4.38%
13.87%
0%
59%
%
0.25
%
65%
10.56
%
7.51
%
6.97%
6.44%
5.11%
Dividend income
2.07%
1.67%
1.34%
0.96%
0.59%
1.83%
1.58%
0.59%
3.74%
2.63
%
2.24
%
1.96
%
-
3.97%
1.61%
1.35%
1.49%
1.86%
1.28%
17%
13%
10%

Un realized loss on revaluation of investments -
%
0%
55%
53%
49%
0.09%
-0.22% -
Other income
4.68%
24%
1.85
%
16%
-28%
-21%
--16%
-18%
19%
44.28
%
34.8
%
22.28
%
24.77
%
24%
Other provision net
0.07%
0.06%
0.01%
0.34%
Other charges
1.76%
0.35
%
2.39%
2.68%
1.22%

55%
60%
56%
48%
40%
Taxation
-17%
-21%
-16%
-14%
-13%
38%
39%
40%
34%
27%
COMMENTS ON VERTICAL ANALYSIS OF INCOME STATEMENT

Net markup /interest income have decreased from 69% to 62% from 2007 to 2010. In 2010 interest income
is 90% while this percentage is 84% in 2007 and 72% in 2006. Net markup / return / interest income after
provisions have also decreased but this decrease is due to increase in provision against loan and advances
by 13% in 2010. Interest expend, markup also increase from 12% to 28% this is directly link with interest
earned, if interest / markup earned increase interest expense increase.
Total income has increasing trend in 2006 to 2010. This increase is due to major increase in interest
earned. Administrative expenses have decreased from 2006 to 2010. This decrease in administrative
expenses due to better management of the bank. Profit before taxation is 40% in 2010 while this
percentage is 55%in 2006. Profit after tax has a trend of decrease. In 2006 profit after tax has 38% while
this percentage is 27% in 2009.

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ASKARI BANK

HORIZONTAL ANALYSIS OF ASKARI BANK BALANCE SHEET

2007 2008 2009

Surplus on revaluation of assets-net on taxes

2006 2007 2008

MUSLIM COMMERCIAL BANK

Debt to equity ratio

HORIZONTAL ANALYSIS OF BALANCE SHEET

Cash and balances with treasury Banks

Balance with other Banks

Lending to the financial inst.

Operating fixed assets

Deposits and other accounts

Deferred tax liabilities

Surplus on revaluation of assets-net on taxes 100%

Total liabilities and share capital

COMMENTS ON HORIZONTAL ANALYSIS OF BALANCE SHEET

HORIZONTAL ANALYSIS OF INCOME STATEMENT

Mark up/return /interest expensed

Net markup/interest income

Provision of diminution in investment

Provision against loan and advances

Net markup/return /interest after provision

Non markup /interest income

Fees commission and brokerage income

Income from dealing foreign currencies

Gain on sales of securities

Un realized loss on revaluation of investments -

Total non markup/return/interest income

Other provision net

Non markup/interest expenses

Total non markup/interest expense

Profit before taxation

Profit after taxation

COMMENTS ON HORIZONTAL ANALYSIS OF INCOME STATEMENT

Cash and balances with treasury Banks

Balance with other Banks

Lending to the financial inst.

Operating fixed assets

100% 100% 100% 100%

Deposits and other accounts

Deferred tax liabilities

Surplus on revaluation of assets-net on taxes

Total liabilities and share capital

100% 100% 100% 100%

COMMENTS ON VERTICAL ANALYSIS OF BALANCE SHEET

Net markup/interest income

Provision against loan and advances

Bad debts written off directly

Net markup/return /interest after provision

Income from dealing foreign currencies

Gain on sales of securities

Non markup /interest income

Un realized loss on revaluation of investments -

Total non markup/return/interest income

Non markup/interest expenses

Other provision net

Total non markup/interest expense

Profit after taxation

COMMENTS ON VERTICAL ANALYSIS OF INCOME STATEMENT

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