64 Annual Report 2017

Rs. in Million
December 31, 2017 2016 2015 2014 2013 2012

ASSETS
Cash and balances with treasury and other banks 86,016 73,884 60,789 42,129 45,775 44,381
Lending to financial institutions 8,694 10,513 3,356 2,030 12,461 10,721
Investments- Gross 700,787 592,561 547,127 429,597 364,966 269,351
Advances - Gross 388,752 348,347 340,769 325,825 285,376 288,889
Operating Fixed assets 48,327 32,757 28,850 27,250 22,084 19,871
Other assets 32,555 32,365 32,716 36,055 23,496 20,245
Total assets - Gross 1,265,131 1,090,427 1,013,607 862,886 754,158 653,458
Provisions against non-performing advances (16,714) (18,784) (19,164) (19,811) (18,375) (17,805)
Provisions against diminution in value of investment (2,705) (2,697) (2,778) (806) (1,587) (1,948)
Total assets - net of provision 1,245,712 1,068,946 991,665 842,269 734,196 633,705

LIABILITIES
Customer deposits 883,741 805,111 734,596 667,878 608,412 514,707
Inter bank borrowings 223,556 126,369 137,960 66,096 32,952 38,916
Bills payable 7,836 9,849 4,942 4,832 4,879 6,203
Other liabilities 23,863 26,943 24,911 19,579 17,513 16,351
Sub-ordinated loans – – – 2,994 4,242 5,490
Total Liabilities 1,138,996 968,272 902,409 761,379 667,998 581,667

NET ASSETS / LIABILITIES 106,716 100,674 89,256 80,890 66,198 52,038

REPRESENTED BY
Share capital 11,451 11,451 11,451 11,451 10,410 9,463
Share premium - - - - - -
Reserves 17,980 16,533 15,102 13,549 12,438 10,899
Reserves for issue of bonus shares - - - - - -
Un - appropriated profit / (loss) 49,212 46,490 41,415 37,053 30,855 23,688
Equity - Tier I 78,643 74,474 67,968 62,053 53,703 44,050
Surplus on revaluation of assets 28,073 26,200 21,288 18,837 12,495 7,988
Total Equity 106,716 100,674 89,256 80,890 66,198 52,038

PROFIT & LOSS ACCOUNT

Markup / Return / Interest earned 65,709 64,592 72,116 67,001 54,222 49,503
Markup / Return / Interest expensed (34,130) (31,345) (35,977) (38,815) (32,552) (31,142)
Net Markup / Interest income 31,579 33,247 36,139 28,186 21,670 18,361
Fee, Commission, Brokerage and Exchange income 4,679 4,660 4,409 3,758 3,711 3,169
Capital gain, Dividend income and Unrealized gain / (loss) 3,869 6,448 4,360 7,850 4,645 10,353
Other income 323 102 986 1,128 1,247 272
Non interest income 8,871 11,210 9,755 12,736 9,603 13,794
Gross income 40,450 44,457 45,894 40,922 31,273 32,155
Operating expenses (21,884) (20,783) (18,603) (17,390) (15,804) (14,853)
Profit before provisions 18,566 23,674 27,291 23,532 15,469 17,302
Donations (54) (42) (139) (76) (80) (104)
Provisions - (charge) / reversal 2,367 199 (1,649) (1,254) (628) (1,362)
Profit before taxation 20,879 23,831 25,503 22,202 14,761 15,836
Taxation (8,145) (9,404) (10,383) (7,187) (118) (4,195)
Profit after taxation 12,734 14,427 15,120 15,015 14,643 11,641

CASH FLOW STATEMENT - SUMMARY

Cash Flow from Operating Activities 119,790 63,803 148,505 57,504 96,332 75,479
Cash Flow from Investing Activities (99,885) (42,388) (118,571) (53,293) (87,993) (62,854)
Cash Flow from Financing Activities (7,987) (8,271) (11,257) (7,950) (7,019) (6,379)

Cash & Cash equivalent at the Beginning of the Year 74,527 60,671 41,980 45,948 44,240 37,944
Effect of Exchange Rate changes on Cash & Cash equivalent (534) 5 30 (230) 215 191
Cash & Cash equivalent at the End of the Year 85,911 73,820 60,687 41,979 45,775 44,381
Allied
Bank
Limited

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December 31, 2017 2016 2015 2014 2013 2012

FINANCIAL RATIOS
Return on equity % 16.63% 20.26% 23.26% 25.94% 29.96% 28.44%
Return on assets % 1.10% 1.40% 1.65% 1.90% 2.14% 1.94%
Profit before tax ratio (PBT/Net markup + non markup income) % 51.62% 53.61% 55.57% 54.25% 47.20% 49.25%
Gross spread ratio (Net markup income / Gross markup income) % 48.06% 51.47% 50.11% 42.07% 39.97% 37.09%
Return on Capital employed ((PAT + Int on sub) / Avg
Cap employed) % 16.63% 20.26% 22.93% 24.87% 27.91% 26.08%
Current & Quick / Acid Test Ratio % 79.39% 65.42% 65.84% 49.17% 87.29% 89.26%
Cash to Current Liabilities % 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%
Advances to deposits ratio (ADR) - Gross % 43.99% 43.27% 46.39% 48.79% 46.91% 56.13%
Advances to deposits ratio (ADR) - Net % 42.10% 40.93% 43.78% 45.82% 43.88% 52.67%
Income / Expense ratio Times 1.85 2.14 2.47 2.35 1.98 2.16
Cost / Income ratio % 54.10% 46.75% 40.53% 42.50% 50.54% 46.19%
Growth in gross income % -9.01% -3.13% 12.15% 30.85% -2.74% 0.10%
Growth in net profit after tax % -11.74% -4.58% 0.70% 2.54% 25.79% 13.43%
Total assets to shareholders’ funds (Tier 1) Times 16.27 15.01 15.25 14.55 15.02 15.48
Total assets to shareholders’ funds (Tier 2) Times 12.01 11.26 11.66 11.45 12.42 13.26
Intermediation cost ratio % 2.59% 2.70% 2.65% 2.73% 2.81% 3.25%
NPL ratio % 4.64% 5.87% 6.43% 7.03% 6.81% 7.15%
Net infection ratio % 0.36% 0.52% 0.87% 1.05% 0.44% 1.08%
Weighted average cost of debt % 3.54% 4.56% 4.56% 5.84% 5.66% 6.39%
Capital Adequacy ratio % 22.39% 20.84% 20.85% 19.75% 17.85% 16.17%
Breakup value per share without Surplus on Revaluation
of Fixed Assets Rs. 77.84 80.81 71.93 64.53 54.78 42.37
Breakup value per share including the effect of Surplus on
Revaluation of Fixed Assets * Rs. 93.20 87.92 77.95 70.64 57.81 45.45
Weighted Average cost of deposit % 3.02% 3.28% 3.94% 5.18% 5.07% 5.39%
Earning assets to total assets ratio % 86.60% 87.00% 87.66% 87.48% 87.56% 86.67%
Gross Yield on Earning Assets % 6.09% 6.95% 8.30% 9.09% 8.43% 9.01%
Cash flow from Operations to Sales % 182.30% 98.78% 205.92% 85.83% 177.66% 152.47%
Fixed Assets turnover ratio % 26.35% 44.04% 52.41% 55.10% 66.31% 58.58%

Duo Pont Analysis

Profit Margin (Net Profit/ Markup and Non Mark up Income) % 17.07% 19.03% 18.47% 18.83% 22.94% 18.39%
Assets Turnover (Mark up plus Non Markup/ Total Assets) % 6% 7.09% 8.26% 9.47% 8.69% 9.99%
Equity Multiplier ( Total Assets/ Equity) Times 16.27 15.01 15.25 14.55 15.02 15.48

SHARE INFORMATION
Cash Dividend Per Share % 70.00% 72.50% 70.00% 65.00% 52.50% 65.00%
Bonus Shares issues % 0.00% 0.00% 0.00% 0.00% 10.00% 10.00%
Dividend Yield Ratio (based on cash dividend) % 8.24% 6.08% 7.44% 5.75% 5.83% 8.84%
Dividend payout ratio (Total payout) % 62.95% 57.54% 53.01% 49.57% 41.05% 63.94%
Dividend Cover ratio % 158.86% 173.78% 188.64% 201.73% 243.58% 156.40%
Earning Per Share (EPS) * Rs. 11.12 12.60 13.20 13.11 12.79 10.17
Price to earning ratio * (PE x) Times 7.64 9.46 7.13 8.63 7.04 7.23
Price to book value ratio Times 0.91 1.36 1.21 1.60 1.56 1.62
Market value per share - at the end of the year Rs. 84.98 119.21 94.07 113.12 90.00 73.49
Market value per share - highest / lowest during the year Rs. 122.89/76 121/82 117/89 138/83 93.5/54.92 76.00 / 52.00
Net assets per share Rs. 93.20 87.92 77.95 70.64 57.81 45.44
Market Capitalisation Rs. In Million 97,308 136,504 107,717 129,531 103,057 84,151

INDUSTRY SHARE
Deposits % 7.15% 7.19% 7.59% 8.01% 8.10% 7.72%
Advances % 5.95% 6.25% 6.95% 7.31% 7.01% 7.49%
Total Assets % 7.08% 7.07% 7.41% 7.43% 7.72% 7.07%
Trade Share
Import & Export Volume USD Million 2,650 2,601 2,783 3,359 3,400 2,852
Market Share % 2.90% 4.18% 4.50% 5.20% 5.46% 4.74%
Home Remittance
Remittances handled USD Million 1,817 1,584 1,661 1,386 994 904
Market Share % 9.27% 8.00% 8.61% 8.05% 6.81% 6.47%

OTHER INFORMATION
Non - performing loans (NPLs) Rs. In Million 18,052 20,432 21,904 22,922 19,424 20,668
Number of employees - Permanent Nos. 10,637 10,430 9,792 9,654 9,675 9,291
Number of employees - Total Nos. 11,394 11,011 10,244 10,121 10,213 9,932
Number of branches Nos. 1,250 1,150 1,050 1,000 950 875
Number of ATMs Nos. 1,239 1,150 1,011 890 794 618
* Restated