FIN619-Project-VU

Fina l Pro jec t F inance FIN 619

wwwvunewblogspotcomFinal Project

FINANCIAL STATEMENT ANALYSIS OF

BANK AL FALAH

AND

HABIB BANK LIMITED

A REPORT

SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES

VIRTUAL UNIVERSITY OF PAKISTAN

IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR

THE DEGREE OF MASTERS IN BUSINESS ADMINISTRATION

Submitted By

Mc070400479

Sheikh Waqas Ahmed

Department of Management Sciences

Virtual University of Pakistan

1S h e i k h W a q a s A h m e d

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DedicationI would like to dedicate this project to my parents who have always encourage me

throughout in my academic career and make possible for me to stand where I am today


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AcknowledgementIn the name of ALLAH the most kind and most merciful

First of all I m grateful to ALLAH ALMIGHTY who bestowed me with health abilities

and guidance to complete the project in a successful manner and without HIS help I was

unable to perform this task

More than anybody else I would like to acknowledge my project advisor Dr

Muhammad Anwar for his never ending support and untiring efforts He was always

there to guide me whenever I felt stuck off and his encouragement always worked as

moral booster for me I have found him very helpful while discussing the tricky issues in

this dissertation work I would also like to thank Mr Majid Hassan principal JMCIT

Lahore His critical comments on my work have certainly made me think of new ideas

and techniques

I am thankful to all my class fellow specially Ambreen Fatima and all other friends who

help me during the project when problem arises specially my seniors Muhammad Yasir

Tanzila Riaz Fatima and Saeed Mahmood for their kind help


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Executive SummaryCommon Size Financial Statement discloses the internal structure of the firm It indicates

the existing relationship between sales and each income statement account It shows the

mix of assets that produce income and the mix of the sources of capital whether by

current or long-term debt or by equity funding

The primary objective of financial analysis is to forecast or determine the actual financial

status and performance of a project


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TABLE OF CONTENT

Section I

a) Introductionhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 6

11 Background helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 6

12 Introduction of the organizationrsquos business sector helliphelliphelliphelliphelliphelliphellip 7

13 Companyrsquos Introduction helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 8

Introduction of Habib Bankhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 8

Introduction of Bank AL Falahhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 9

14 List of competitors helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 10

15 Objectives of Projectshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 10

16 Significance of the Projecthelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 11

b) Processing and Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 13

Data Collection Sourceshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 13

Data Collection Toolshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14

Data Processing and Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14

Project proceedingshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14

1 Ratio Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 14

a) Liquid Ratiohelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 15

b) Leverage Ratiohelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 18

c) Profitability Ratiohelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 24

d) Activity Ratiohelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 32

e) Market Ratioshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 33

f) Statement of Cash Flowhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 38

2 Common Size Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 39

a) Horizontal Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 40

b) Vertical Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 49


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wwwvunewblogspotcom3 Review of Descriptive Informationhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 59

4 Comparisons helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 60

a) Trend Analysishelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 60

b) Industry Averages and Comparisons with Competitorshelliphelliphellip 65

c) Summaryhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 65

d) Conclusions Findingshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 66

e) Recommendation helliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 67

Section IIhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellip 68

a) Introduction of the studenthelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellipLXVIII

b) AppendixAppendiceshelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellipLXVIII

c) BibliographyhelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphelliphellipLXXXVII

Section I

a) Introduction

Financial statements for banks present a different analytical problem than manufacturing

and service companies As a result analysis of a banks financial statements requires a

distinct approach that recognizes a banks somewhat unique risks

Banks take deposits from savers paying interest on some of these accounts They pass

these funds on to borrowers receiving interest on the loans Their profits are derived

from the spread between the rate they pay for funds and the rate they receive from

borrowers By managing this flow of funds banks generate profits acting as the

intermediary of interest paid and interest received and taking on the risks of offering

credit As one of the most highly regulated banking industries in the world investors

have some level of assurance in the soundness of the banking system As a result

investors can focus most of their efforts on how a bank will perform in different

economic environments In this project I am trying to provide assistance to the investors

by showing them the performance of two banks underlying the same functions

11 Background of the project

Financial Statement Analysis is a method used by interested parties such as investors

creditors and management to evaluate the past current and projected conditions and


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wwwvunewblogspotcomperformance of the firm Ratio analysis is the most common form of financial analysis It

provides relative measures of the firms conditions and performance Horizontal Analysis

and Vertical Analysis are also popular forms Horizontal analysis is used to evaluate the

trend in the accounts over the years while vertical analysis also called a Common Size

Financial Statement discloses the internal structure of the firm It indicates the existing

relationship between sales and each income statement account It shows the mix of assets

that produce income and the mix of the sources of capital whether by current or long-

term debt or by equity funding When using the financial ratios a financial analyst makes

two types of comparisons

Financial ratio analysis is an important topic and is covered in all mainstream corporate

finance textbooks It is also a popular agenda item in investment club meetings It is

widely used to summarize the information in a companys financial statements in

assessing its financial health In todays information technology world real time financial

data are readily available via the Internet Performing financial ratio analysis using

publications such as Robert Morris Associatesrsquo Annual Statement Studies Dun amp

Bradstreetrsquos Key Business Ratios Moodyrsquos Manuals Standard amp Poorrsquos Corporation

Records Value Line Investment Survey etc is no longer efficient Since students and

investors now have easy access to on-line databases the assignments on financial ratio

analysis can be modified accordingly to enhance learning

In the current scenario where financial instability is rife and financial intuitions are

becoming popular when it comes to investing the sound analysis of financial statements

is one of the most important elements in the fundamental analysis process At the same

time the massive amount of numbers in a companys financial statements can be

bewildering and intimidating to many investors However through financial ratio

analysis we shall be able to work with these numbers in an organized fashion and present

them in a concise form easily understandable to both the management and interested

investors

12 Introduction of the organizationrsquos business sector

The organizations is choose are from the banking sector Banking primarily the business

of dealing in money and instruments of credit Banks were traditionally differentiated


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wwwvunewblogspotcomfrom other financial institutions by their principal functions of accepting deposits subject

to withdrawal or transfer by check and of making loans A bank is a financial institution

licensed by a government Its primary activity is to lend money Many other financial

activities were allowed over time For example banks are important players in financial

markets and offer financial services such as investment funds In some countries such as

Germany banks have historically owned major stakes in industrial corporations while in

other countries such as the United States banks are prohibited from owning non-financial

companies In Japan banks are usually the nexus of a cross-share holding entity known

as the zaibatsu In France banc assurance is prevalent as most banks offer insurance

services (and now real estate services) to their clients The level of government regulation

of the banking industry varies widely with counties such as Iceland the United Kingdom

and the United States having relatively light regulation of the banking sector and

countries such as China having relatively heavier regulation

Banks have traditionally been distinguished according to their primary functions

Commercial banks which include national- and state-chartered banks trust companies

stock savings banks and industrial banks have traditionally rendered a wide range of

services in addition to their primary functions of making loans and investments and

handling demand as well as savings and other time deposits Mutual savings banks until

recently accepted only savings and other time deposits and offered limited types of

loans and services The fact that commercial banks were able to expand or contract their

loans and investments in accordance with changes in reserves and reserve requirements

further differentiated them from mutual savings banks where the volume of loans and

investments was governed by changes in customers deposits Membership in the Federal

Deposit Insurance Corporation is compulsory for all Federal Reserve member banks but

optional for other banks

13 Companyrsquos introduction

Introduction of Habib Bank of Pakistan

Habib Bank Limited commonly referred to as HBL and head-quartered in Habib

Bank Plaza Karachi Pakistan is the largest bank in Pakistan HBL is a Banking

Company which is engaged in Commercial amp Retail Banking and related services


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wwwvunewblogspotcomdomestically and overseas HBL was incorporated on 25 th August 1941 and operated in

the private sector until its nationalization in 1974 HBL has been approved for

privatization and the privatization commission has selected a Financial Advisor to

prepare a comprehensive plan and assist in the sale process The government has

appointed a professional management team to restructure the bank and to recover and

clean its doubtful and classified portfolio HBL is one of the largest commercial bank of

Pakistan It accounts for a substantial share (20) of the total commercial banking

market in Pakistan with a network of 1705 domestic branches 55 overseas branches in

26 countries spread over Europe the Middle East Far East Asia Africa and the United

States 3 HBL wholly owned Subsidiaries namely Habib Bank Financial Services (PVT)

LTD Karachi Habib Finance International LTD (Hong Kong) and Habib Finance

Australia Ltd ndash Sydney 2 Joint Ventures namely Habib Nigeria Bank Ltd (40) and

Himalayan Bank Ltd (20) and 2 representative offices in Iran and Egypt It continues

to dominate the commercial banking sector with a major market share in inward foreign

remittances (55) and loans to small industries traders and farmers HBL is one of

Pakistans premier banks in terms of deposits and advances with a huge domestic and

international network HBL provides its customers a complete range of banking products

and services including retail banking corporate and institutional banking trade finance

consumer finance and credit cards HBL is currently rated AA (Long term) and A-1+

(Short term) and has a balance sheet size of over USD 11 billion It is the first Pakistani

bank to raise Tier II Capital from external sources

Vision

ldquoEnabling people to advance with confidence and successrdquo

Mission

ldquoTo make our customer prosper our staff excels and creates value for shareholdersrdquo

Introduction of Bank Al Falah

Bank Alfalah Limited is a private bank in Pakistan owned by the Abu Dhabi Group

Bank Alfalah Limited was incorporated on June 21st 1992 as a public limited company

under the Companies Ordinance 1984 Its banking operations commenced from

November 1st 1997 The bank is engaged in commercial banking and related services as


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wwwvunewblogspotcomdefined in the Banking companies ordinance 1962 The Bank is currently operating

through 195 branches in 74 cities with the registered office at BABuilding

IIChundrigar Karachi

This facilitates the commitment to a culture of innovation and seeks out synergies with

clients and service providers to ensure uninterrupted services to its customers Bank Al-

Falah is known to perceive the requirements of customers and match them with quality

products and service solutions During the past five years this bank has emerged as one

of the foremost financial institution in the region endeavoring to meet the needs of

tomorrow today With a vision to be the premier organization operating locally amp

internationality that provides the complete range of financial services to all segments

under one roof Bank Al-Falah is one of the most important entities in banking sector of

Pakistan with a strong credit rating of AA for long term and A one plus for the short

term Since its inception as the new identity of HCEB after the privatization in 1997

the management of the bank has implemented strategies and policies to carve a distinct

position for the bank in the market place Since its inception as the new identity of

HCEB after the privatization in 1997 the management of the bank has implemented

strategies and policies to carve a distinct position for the bank in the market place

Strengthened with the banking of the Abu Dhabi Group and driven by the strategic goals

set out by its board of management the Bank has invested in revolutionary technology to

have an extensive range of products and services

Vision

ldquoTo be the premier organization operating locally amp internationality that provides the

complete range of financial services to all segments under one roofrdquo

Mission

ldquoTo develop amp deliver the most innovative products manage customer experience

deliver quality services that contributes to brand strength establishes a competitive

advantage and enhances profitability thus providing value to the stakeholders of the

bankrdquo

14 List of competitors

Standard Chartered Bank

National Banks


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wwwvunewblogspotcom Allied Bank Limited

15 Objectives of the project

The objective of this project is to provide insight into how the banks work what are the

strengths and weakness of the banks which bank is financially more feasible than the

other The ratios will be compared of both the banks within the industry to see where the

banks stand Question such as lsquoWhat are the strengths and weaknesses of each bankrsquo

will be answered with the comparison of the ratios To give the stock holder a clear view

about the financial feasibility of both the banks so that they can take the appropriate

decision And most significantly it will provide a good understanding of the business

cycle and the yield curve - both of which have a major impact on the economic

performance of banks

The primary objective of financial analysis is to forecast andor determine the actual

financial status and performance of a project and where appropriate of the EAs This is

to enable ADB to combine that information with all other pertinent data (technical

economic social etc) to assess the feasibility viability and potential economic benefits

of a proposed or continuing lending operation Secondary objective is the provision of

Technical Assistance to a borrower and an EA to enable them to make similar

assessments for the project and to apply the techniques to other non-ADB investments A

tertiary objective is to encourage borrowers to make any necessary changes to their

institutional and financial management systems to facilitate the generation of appropriate

data to support good financial analysis The objectives of financial analysis as set out

above are intended to measure the achievement of financial objectives of a borrower the

project to be (or being) financed The financial performance of a public and private sector

EA should normally be measured by the use of at least one indicator selected from the

range of the following groups of indicators derived from the financial analysis of a

project and its EA (i) operation (ii) capital structure and (iii) liquidity This means that

if only one indicator from one of the three categories of indicators above would be the

subject of a loan covenant the remaining indicator or indicators from each group above

recommended by the financial analyst should be the subject of periodic reporting The

efficient allocation of resources is an important consideration in pricing policy


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wwwvunewblogspotcomparticularly for REEA services Financial analysis is used to describe the impact of such a

policy

I worked on the financial statements of the bank ie Balance sheet of the bank and make

some essential calculations in order to give you an idea about the financial stability of the

bank

16 Significance of the project

Financial statements provide an overview of a business financial condition in both short

and long term All the relevant financial information of a business enterprise presented in

a structured manner and in a form easy to understand is called the financial statements

Therefore these financial statements are very useful for the stake holder as they obtain all

insight information In assessing the significance of various financial data experts engage

in ratio analyses the process of determining and evaluating financial ratios A financial

ratio is a relationship that indicates something about a companys activities such as the

ratio between the companys current assets current liabilities or between its accounts

receivable and its annual sales The basic source for these ratios is the companys

financial statements that contain figures on assets liabilities profits or losses Financial

ratios are only meaningful when compared with other information Since they are most

often compared with industry data ratios help an individual understand a companys

performance relative to that of competitors they are often used to trace performance over

time

Ratio analysis can reveal much about a company and its operations However there are

several points to keep in mind about ratios First financial statement ratios are flags

indicating areas of strength or weakness One or even several ratios might be misleading

but when combined with other knowledge of a companys management and economic

circumstances ratio analysis can tell much about a corporation Second there is no single

correct value for a ratio The observation that the value of a particular ratio is too high

too low or just right depends on the perspective of the analyst and on the companys

competitive strategy Third a ratio is meaningful only when it is compared with some

standard such as an industry trend ratio trend a ratio trend for the specific company

being analyzed or a stated management objective


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wwwvunewblogspotcom The significance of my project stems from the very nature of the financial statements ie

they are usually lengthy bulky documents which have a huge array of numbers not

readily understandable Financial statement analysis is the process of examining

relationships among financial statement elements and making comparisons with relevant

information It is a valuable tool used by investors and creditors financial analysts and

others in their decision-making processes related to stocks bonds and other financial

instruments The goal in analyzing financial statements is to assess past performance and

current financial position and to make predictions about the future performance of a

company Investors who buy stock are primarily interested in a companys profitability

and their prospects for earning a return on their investment by receiving dividends andor

increasing the market value of their stock holdings Creditors and investors who buy debt

securities such as bonds are more interested in liquidity and solvency the companys

short-and long-run ability to pay its debts Financial analysts who frequently specialize

in following certain industries routinely assess the profitability liquidity and solvency

of companies in order to make recommendations about the purchase or sale of securities

such as stocks and bonds Analysts can obtain useful information by comparing a

companys most recent financial statements with its results in previous years and with the

results of other companies in the same industry My aim is to summarize all that data into

a form which is easily understood by all the relevant parties

b) Processing and Analysis

This section should provide solid or concrete foundations to the study Quality and value of

the research report depends upon how precisely and accurately the data is collected

processed interpreted and analyzed so that fruitful conclusions may be drawn out of it It

includes

Data Collection Sources

To think about the issue of data collection means you are wondering about the

characteristics of the methods used Each method has its own advantages and

inconveniences With each technique you might also found a few people who will

disapprove its use for such or such reason

At the beginning of a research (Project) it can be important to look for documentary

sources It is what some will call ldquothe review of papers And here I use the term


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wwwvunewblogspotcomdocumentary sources in the widest meaning of this term Indeed the goal is not to find

only written sources These documentary sources I use are

Sites on the internet

Articles from scientific publications

Documents on various format (audio video or computer support)

Advisers with a particular expertise

The purpose of the gathering of documentary sources is to have a better idea of what have

been said or written about my subject It is not for the intellectual beauty of the matter

which I should do that The search for documentary sources allowed me to put a more

adequate glance at the data you will later gather

Also I use secondary sources for data collection for my work that include internet and

then I use stock exchange for data gathering as the banks are listed in Lahore stock

exchange So I got their annual reports from there

Data Collection Tools

According to the topic I have selected for my project the tool used for data collection is

direct observation of the financial statements of the banks

Company profile forms

Company comparison forms

Stock exchange

Internet past articles

Case Study

Data Processing and Analysis

We can use several tools to evaluate a company but I will use one of the most valuable

tool that is ldquofinancial ratiosldquo Ratios are an analystrsquos microscope they allow us get a

better view of the firmrsquos financial health than just looking at the raw financial statements

Ratios are useful both to internal and external analysts of the firm For internal

purposes ratios can be useful in planning for the future setting goals and evaluating the

performance of managers External analysts use ratios to decide whether to grant credit

to monitor financial performance to forecast financial performance and to decide

whether to invest in the company I will use Microsoft Word and Microsoft Excel work

sheets to compute the different ratios and analysis


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wwwvunewblogspotcomProject proceedings

1 RATIO ANALYSIS

Financial ratios are useful indicators of a firms performance and financial situation

Financial ratios can be used to analyze trends and to compare the firms financials to

those of other firms Ratio analysis is the calculation and comparison of ratios which are

derived from the information in a companys financial statements Financial ratios are

usually expressed as a percent or as times per period Ratio analysis is a widely used tool

of financial analysis It is defined as the systematic use of ratio to interpret the financial

statements so that the strength and weaknesses of a firm as well as its historical

performance and current financial condition can be determined The term ratio refers to

the numerical or quantitative relationship between two variables With the help of ratio

analysis conclusion can be drawn regarding several aspects such as financial health

profitability and operational efficiency of the undertaking Ratio points out the operating

efficiency of the firm ie whether the management has utilized the firmrsquos assets correctly

to increase the investorrsquos wealth It ensures a fair return to its owners and secures

optimum utilization of firmrsquos assets Ratio analysis helps in inter-firm comparison by

providing necessary data An inter firm comparison indicates relative position It provides

the relevant data for the comparison of the performance of different departments If

comparison shows a variance the possible reasons of variations may be identified and if

results are negative the action may be initiated immediately to bring them in line Yet

another dimension of usefulness or ratio analysis relevant from the View point of

management is that it throws light on the degree efficiency in the various activity ratios

measures this kind of operational efficiency

a) Liquidity Ratios

b) Leverage Ratios

c) Profitability Ratios

d) Activity Ratios

e) Market Ratios

f) Statements of Cash Flow


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Ratio Analysis

a) Liquidity Ratios

Liquidity ratios measure a firmrsquos ability to meet its current obligations These include

Current Ratio

Current Ratio = Current Assets Current Liabilities

This ratio indicates the extent to which current liabilities are covered by those assets

expected to be converted to cash in the near future Current assets normally include cash

marketable securities accounts receivables and inventories Current liabilities consist of

accounts payable short-term notes payable current maturities of long-term debt accrued

taxes and other accrued expenses Current assets are important to businesses because

they are the assets that are used to fund day-to-day operations and pay ongoing expenses

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

The current ratio for the year 2006 2007 amp 2008 is 120 119 amp 116 respectively

compared to standard ratio 21 this ratio is lower which shows low short term liquidity

efficiency at the same time holding less than sufficient current assets mean inefficient use

of resources

BANK AL FALAH

The ratios for the last 3 years are 106 110 amp 106 shows below standard of 21 which

means efficient use of funds but at the risk of low liquidity


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Year 2006 2007 2008

Current Assets 575611106 671597594 731954693

Current Liabilities 480455832 566659483 631948038

Current ratio 120 119 116

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471




wwwvunewblogspotcomSales to Working Capital

Sales to Working Capital = Sales Working Capital

Sales to working capital give an indication of the turnover in working capital per year A

low working capital indicates an unprofitable use of working capital

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

This liquidity ratio for the years 2006 2007 amp 2008 is 0505 amp 06 times respectively



of resources

BANK AL FALAH



Working Capital

Working Capital = Current Assets ndash Current Liabilities

A measure of both a companys efficiency and its short-term financial health Positive

working capital means that the company is able to pay off its short-term

liabilities Negative working capital means that a company currently is unable to meet its


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Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital

05 times 05 times 06 times

Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302

Sales to Working 138 085 157


wwwvunewblogspotcomshort-term liabilities with its current assets (cash accounts receivable and inventory)

Also known as net working capital or the working capital ratio

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

It is very clear from the above calculations that the working capital of the bank is

gradually increasing over the years which shows good short term liquidity efficiency

BANK AL FALAH

This ratio increased to a great extent in 2007 almost double of the year 2006 but later on

in the year 2008 it went down again

b) Leverage Ratios

By using a combination of assets debt equity and interest payments leverage ratios are

used to understand a companys ability to meet it long term financial obligations

Leverage ratios measure the degree of protection of suppliers of long term funds The

level of leverage depends on a lot of factors such as availability of collateral strength of

operating cash flow and tax treatments Thus investors should be careful about

comparing financial leverage between companies from different industries For example

companies in the banking industry naturally operates with a high leverage as collateral

their assets are easily collateralized

These include


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Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302


wwwvunewblogspotcomTime Interest Earned

TIE Ratio = EBIT Interest Charges

The interest coverage ratio tells us how easily a company is able to pay interest expenses

associated to the debt they currently have The ratio is designed to understand the

amount of interest due as a function of companyrsquos earnings before interest and taxes

(EBIT) This ratio measures the extent to which operating income can decline before the

firm is unable to meet its annual interest cost

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

We can see from this ratio analysis that this company has covered their interest expenses

243 times in 2006 179 times in 2007 and 18 times in 2008 It means they have

performed pretty much same in 2007 and 2008 but has taken a different look in 2006

As in 2006 they issued a little high number of long-term loans and does not have good

liquidity position their EBIT became high thus making TIE a little high as well

BANK AL FALAH

We can see that this company has covered their interest expenses 116 times in 2006

127 times in 2007 and 108 times in 2008 It means they havenrsquot improved in the past

years

Debt Ratio

Debt Ratio = Total Debt Total Assets


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Year 2006 2007 2008

EBIT 32044524 34298574 48559935

Interest Charges 13204037 19153957 19153957

TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914

Interest charges 15232886 16620963 20331194

TIE ratio 116 127 108


wwwvunewblogspotcomThe ratio of total debt to total assets generally called the debt ratio measures the

percentage of funds provided by the creditors The proportion of a firms total assets that

are being financed with borrowed funds The debt ratio is calculated by dividing total

long-term and short-term liabilities by total assets The higher the ratio the more leverage

the company is using and the more risk it is assuming Assets and liabilities are found on

a companys balance sheet

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

Calculating the debt ratio we came to see that this company is highly leveraged one

BANK AL FALAH


Debt to Equity Ratio

Debt to Equity Ratio = Total debt Total Equity

The debt to equity ratio is the most popular leverage ratio and it provides detail around

the amount of leverage (liabilities assumed) that a company has in relation to the monies

provided by shareholders As you can see through the formula below the lower the

number the less leverage that a company is using The debt to equity ratio gives the

proportion of a company (or persons) assets that are financed by debt versus equity It is

a common measure of the long-term viability of a companys business and along with

current ratio a measure of its liquidity or its ability to cover its expenses As a result


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889

Debt Ratio 091 091 09

Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcomdebt to equity calculations often only includes long-term debt rather than a companys

total liabilities A high debt to equity ratio implies that the company has been

aggressively financing its activities through debt and therefore must pay interest on this

financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

We can see from the above calculations that this ratios continuously decreasing in the last

three years

BANK AL FALAH

Calculating this debt ratio we can see that it was 2491 2271 amp 2272 in the year 2006

2007 amp 2008 respectively This shows a decline in the ratio over the years

Current Worth Net worth Ratio

Current Worth to Net worth Ratio= Current Worth Net worth Ratio

We can calculate current worth and net worth by using following formulas

Current Worth = Total Current Assets ndash Total Current Liabilities

Net Worth = Total Assets - Total Liabilities

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902

Debt To Equity Ratio 1188 1142 958

Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436

Current Worth to Net

worth Ratio

178 166 133


wwwvunewblogspotcomBANK AL FALAH

Interpretation

HABIB BANK


three years In 2006 it was 178 in 2007 it was 166 and in 2008 it was 133

BANK AL FALAH

Analysis shows that this ratio was as high as 12 among three years However it declined

to 115 in the year 2008 In 2007 the ratio somewhat increased to 185

Total Capitalization Ratio

Total Capitalization Ratio = Long-term debt long-term debt + shareholders equity

The capitalization ratio measures the debt component of a companys capital structure or

capitalization (ie the sum of long-term debt liabilities and shareholders equity) to

support a companys operations and growth Long-term debt is divided by the sum of

long-term debt and shareholders equity This ratio is considered to be one of the more

meaningful of the debt ratios - it delivers the key insight into a companys use of

leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915

Long term debt + Equity 101569934 117157734 122080817

Capitalization Ratio

worth Ratio

056 053 042

Year 2006 2007 2008

Long Term debt 13537574 25831364 16469856Long term debt + Equity 24110179 39598037 31078379Capitalization Ratio

worth Ratio

056 065 052


wwwvunewblogspotcomInterpretation

HABIB BANK

It is obvious from the above calculations that there is a gradual fall in this ratio over the

years

BANK AL FALAH

The ratios for the last 3 years are 056 065 and 052 Shows below standard of 21

Long term Assets versus Long term Debt

Long term Assets versus Long term Debt= Long Term Assets Long Term Debts

HABIB BANK

BANK AL FALAH

Debt Coverage Ratio

Debt Coverage Ratio = Net Operating Income Total Debt

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008

Net Operating Income 12074762 5121453 5655568

Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531


wwwvunewblogspotcomc) Profitability Ratios

Profitability is the net result of a number of policies and decisions This section of the

discusses the different measures of corporate profitability and financial performance

These ratios much like the operational performance ratios give users a good

understanding of how well the company utilized its resources in generating profit and

shareholder value The long-term profitability of a company is vital for both the

survivability of the company as well as the benefit received by shareholders It is these

ratios that can give insight into the all important profit Profitability ratios show the

combined effects of liquidity asset management and debt on operating results These

ratios examine the profit made by the firm and compare these figures with the size of the

firm the assets employed by the firm or its level of sales There are four important

profitability ratios that I am going to analyze

Net Profit Margin

Net Profit margin = Net Profit Sales x 100

Net Profit Margin gives us the net profit that the business is earning per dollar of sales

This margin indicates the profit after all the costs have been incurred it shows that what

of turnover is represented by the net profit An increase in the ratios indicates that a

firm is producing higher net profit of sales than before

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033

Net Profit Margin 2907 1997 2466

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583



wwwvunewblogspotcomTherefore the Net Profit Margin was 831 in 2006 increase to 121 in 2007 and then

decrease to 4 in 2008

BANK AL FALAH

Therefore the Net Profit Margin was 2907 in 2006 decrease to 1997 in 2007 and

then again increased to 2466 in 2008

Operating Income Margin

Operating Income Margin = Operating Income x 100

Net Sales

Operating Income Margin =

Net mark-up interest income after provisions + Mark-up return interest expensed -

Total non mark-up interest expenses

HABIB BANK

BANK AL FALAH

Return on Assets

Return on Assets (ROA) = Profit after Taxation Average Total assets x 100

ROA A measure of a companys profitability equal to a fiscal years earnings divided by

its total assets expressed as a percentage This is an important ratio for companies

deciding whether or not to initiate a new project The basis of this ratio is that if a

company is going to start a project they expect to earn a return on it ROA is the return


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Operating Income 25278799 24275410 37738818

Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008


Net Sales 21191470 25783871 31046583Operating Income

Margin

0687738604 0586337443 05437148


wwwvunewblogspotcomthey would receive Simply put if ROA is above the rate that the company borrows at

then the project should be accepted if not then it is rejected

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

Return on assets decreased in 2007 and 2008 and it was maximum in year 2006 This

may have occurred because Square used more debt financing in 2006 compared to 2007

and 2008 which resulted in more interest cost and brought the Net income down

BANK AL FALAH

Return on assets decreased gradually throughout the years

Return on Equity (ROE)

Return on Total Equity = Profit after taxation x 10

Total Equity

Return on Equity measures the amount of Net Income earned by utilizing each dollar of

Total common equity It is the most important of the ldquoBottom linerdquo ratio By this we can

find out how much the shareholders are going to get for their shares This ratio indicates

how profitable a company is by comparing its net income to its average shareholders

equity The return on equity ratio (ROE) measures how much the shareholders earned for

their investment in the company The higher the ratio percentage the more efficient

management is in utilizing its equity base and the better return is to investors


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Average assets 5595926865 6411414945 724959955

ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Average assets 1379669275 3022903465 338942958ROA 127 101 0038


wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

The Return on Equity was maximum in 2006 but decreased in 2007 and went down more

in 2008 This again may have happened due to the issue of more long-term debt in 2007

and 2008

BANK AL FALAH

The Return on Equity was maximum in 2007 but decreased to an extent in the following

years 2007 and 2008 This again may have happened due to the issue of more long-term

debt in 2007 and 2008

DuPont Return on Assets

DuPont Return on Assets = Profit after taxation x 100

Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389

DuPont ROA 215 146 206



Operating Assets Turnover

Operating Assets Turnover = Operating Assets x 100

Net Sales

HABIB BANK

BANK AL FALAH

Detail of Operating Assets of Habib Bank Limited

2008

Operating Assets

Cash and balances with treasury banks 56533134

Balances with other banks 39307321

Operating fixed assets 14751252

110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008

Operating Assets 94230402 97259620 110591707

Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008


Net Sales 21191470 25783871 31046583Operating Assets Turnover

Margin

241 231 219


wwwvunewblogspotcom 97259620

2006

Operating Assets




94230402

Detail of Operating Assets of Bank Al Falah Limited

2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomReturn on Operating Assets

Return on Operating Assets = Profit after Taxation x 100

Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020


Return on Operating Assets 1348 1037 1119

BANK AL FALAH

Sales to Fixed Assets

This ratio is indicates that how much sales are contributed by investment in fixed Assets

Sales to Fixed Assets = Net Sales Fixed Assets

HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252

Sales to Fixed Assets 365 times 366 times 366 times

Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293



wwwvunewblogspotcomActivity ratio are sometimes are called efficiency ratios Activity ratios are concerned

with how efficiency the assets of the firm are managed These ratios express relationship

between level of sales and the investment in various assets inventories receivables fixed

assets etc

Total Asset Turnover

Total Asset Turnover = Total Sales Total Assets

The amount of sales generated for every dollars worth of assets It is calculated by

dividing sales in dollars by assets in dollars Asset turnover measures a firms efficiency

at using its assets in generating sales or revenue - the higher the number the better It also

indicates pricing strategy companies with low profit margins tend to have high asset

turnover while those with high profit margins have low asset turnover

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH


years 2007 and 2008 This again may have


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389

Total Asset Turnover 007 007 008

Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio

Market Value Ratios relate an observable market value the stock price to book values

obtained from the firms financial statements

Dividend per Share ndash DPS

Dividend per Share = Total amount of Dividend

Number of outstanding shares

Per share capital = 10 per share

Or

No of shares outstanding = share capital 10

Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000

Dividend per Share 10019 20014 3597

Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500


Note There is no dividend paid by the bank in the year 2006 and 2007

Earning Per Share- EPS

Earning Per Share = Profit after Taxation

Number of Shares

The portion of a companys profit allocated to each outstanding share of common

stock Earnings per share serve as an indicator of a companys profitability Earnings per

share are generally considered to be the single most important variable in determining a


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomshares price It is also a major component used to calculate the price-to-earnings

valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio

Price Earning Ratio = Stock Price Per Share

Earning Per Shares

The Price-Earnings Ratio is calculated by dividing the current market price per share of

the stock by earnings per share (EPS) (Earnings per share are calculated by dividing net

income by the number of shares outstanding)

The PE Ratio indicates how much investors are willing to pay per dollar of current

earnings As such high PE Ratios are associated with growth stocks (Investors who are

willing to pay a high price for a dollar of current earnings obviously expect high earnings

in the future) In this manner the PE Ratio also indicates how expensive a particular

stock is This ratio is not meaningful however if the firm has very little or negative

earnings The Price-Earnings Ratio is calculated by dividing the current market price per

share of the stock by earnings per share (EPS) (Earnings per share are calculated by

dividing net income by the number of shares outstanding) The PE Ratio indicates how

much investors are willing to pay per dollar of current earnings As such high PE Ratios

are associated with growth stocks (Investors who are willing to pay a high price for a

dollar of current earnings obviously expect high earnings in the future) In this manner

the PE Ratio also indicates how expensive a particular stock is This ratio is not

meaningful however if the firm has very little or negative earnings


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Profit after Taxation 12700315 10084037 15614020

Number of Shares 690000 690000 759000

Earning Per Share 1841 1461 2057

Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK

The PE ratio was 054 times in 2006 and increased further to as high as 068 times in the

following year However in 2008 it declined to 049 times which is an alarming signal

for the potential investors

BANK AL FALAH

The PE ratio was 283 times in 2006 and decreased a little bit in 2007 However in 2008 it

increased as much higher than before to 614 times

Dividend Payout Ratio

Dividend Payout Ratio = Dividend per Share

Earning per Share

The percentage of earnings paid to shareholders in dividends The payout ratio provides

an idea of how well earnings support the dividend payments More mature

companies tend to have a higher payout ratio This ratio identifies the percentage of

earnings (net income) per common share allocated to paying cash dividends to

shareholders The dividend payout ratio is an indicator of how well earnings support the

dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Stock price per share 10 10 10

EPS 1841 1461 2057

Price Earning Ratio 054 068 049

Year 2006 2007 2008


EPS 3525 4815 1627



wwwvunewblogspotcomHABIB BANK

BANK AL FALAH

Dividend Yield

Dividend Yield = Dividend per Share

Share Price

Financial ratio that shows how much a company pays out in dividends each year relative

to its share price In the absence of any capital gains the dividend yield is the return on

investment for a stock A stocks dividend yield is expressed as an annual percentage and

is calculated as the companys annual cash dividend per share divided by the current price

of the stock The dividend yield is found in the stock quotes of dividend-paying

companies Investors should note that stock quotes record the per share dollar amount of

a companys latest quarterly declared dividend This quarterly dollar amount is annualized

and compared to the current stock price to generate the per annum dividend yield which

represents an expected return

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057

Dividend Payout Ratio 00544 0137 0175

Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597

Share Price 10 10 10

Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121


Dividend Yield 00 00 0121


wwwvunewblogspotcomBook Value per Share

Book Value per Share = Shareholdersrsquo Equity

Share Capital

This is defined as the Common Shareholders Equity divided by the Shares Outstanding

at the end of the most recent fiscal quarter It is the Indication of the net worth of the

corporation Somewhat similar to the earnings per share but it relates the stockholders

equity to the number of shares outstanding giving the shares a raw value Comparing the

market value to the book value can indicate whether or not the stock in overvalued or

undervalued

HABIB BANK

BANK AL FALAH

f)

Statement of cash flow

Cash flow ratios indicate liquidity borrowing capacity or profitability This section of the

financial ratio looks at cash flow indicators which focus on the cash being generated in

terms of how much is being generated and the safety net that it provides to the company

These ratios can give users another look at the financial health and performance of a

company

Operating Cash Flow to Total Debt

Operating Cash Flow to Total Debt = Operating Cash FlowTotal Debt

This coverage ratio compares a companys operating cash flow to its total debt which for

purposes of this ratio is defined as the sum of short-term borrowings the current portion


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000

Book Value per Share 65 798 939

Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000



wwwvunewblogspotcomof long-term debt and long-term debt This ratio provides an indication of a companys

ability to cover total debt with its yearly cash flow from operations The higher the

percentage ratio the better the companys ability to carry its total debt

HABIB BANK

BANK AL FALAH

Operating Cash Flow per Share

Operating Cash Flow per Share = Operating cash flow Total Shares

HABIB BANK

BANK AL FALAH

2 Common Size Analysis (Vertical and Horizontal)


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Operating Cash flow 17851517 56224065 18231677

Total Debts 536848102 628754092 682747953

Operating Cash Flow to TDebt 0033 0089 0027

Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000

Operating Cash Flow per Share 2587 8148 2402

Year 2006 2007 2008


Total Shares 500000 650000 799500



wwwvunewblogspotcomThe term trend analysis refers to the concept of collecting information and attempting

to spot a pattern or trend in the information In some fields of study the term trend

analysis has more formally-defined meanings Although trend analysis is often used to

predict future events it could be used to estimate uncertain events in the past Financial

statement information is used by both external and internal users including investors

creditors managers and executives These users must analyze the information in order to

make business decisions so understanding financial statements is of great importance

Several methods of performing financial statement analysis exist I will discuss two of

these methods horizontal analysis and vertical analysis

a) Horizontal Analysis

Methods of financial statement analysis generally involve comparing certain information

The horizontal analysis compares specific items over a number of accounting periods

For example accounts payable may be compared over a period of months within a fiscal

year or revenue may be compared over a period of several years It is a procedure in

fundamental analysis in which an analyst compares ratios or line items in a companys

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

HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

(Rupees in lsquo000rsquo) Horizontal Analysis

2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury banks56533134 55487664 46310478 12207 1198 100

Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomLending to

financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100

Deferred tax asset 11222444 6613372 2725486 41176 2426 100

TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100

Sub-ordinate loans 3954925 3100000 0 0 0 0

Liabilities against

assets subject to

finance lease

Other liabilities 24913236 19943126 15578177 15992 128 100

Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomShare capital 7590000 6900000 6900000 110 100 100

Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100

Minority interest 890099 965642 913317 97458 1057 100

Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK

CONSOLIDATED PROFIT amp LOSS ACCOUNT

AS ON DEC 31 2008 2007 amp 2006

2008 2007 2006 Horizontal Analysis

(Rupees in lsquo000rsquo) 2008 2007 2006

Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return

interest expensed26525556 19153957 13204037 20089 1451 100

Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomCharge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcominterest expense

Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up

interest expenses21936505 1810632 15602869 14059 0 100

Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted

earnings per share2047 1318 1830 11186 7202 100


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS

BANK AL FALAH LIMITED

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years

(Rupees in lsquo000rsquo)Horizontal Analysis

2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100

Deferred tax asset 0 0 0 0

Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomASSETS

LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomassets - net of tax

TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS


PROFIT amp LOSS ACCOUNT

AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return


Net mark-up interest

income10715389 9162908 5958584 17983 1538 100

Provision against non-

performing loans and

advances - net

2035997 2370867 697690 29182 3398 100

Provision for

diminution in value of

investment

1479062 0 0 0

Bad debts written off

directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomprovisions

Non mark-up

interest income

Fee commission and

brokerage income 2539321 2429599 1804998 14068 1346 100

Dividend income 300943 64722 37393 80481 1731 100

Income from dealing in

foreign currencies 914845 474510 386997 2364 1226 100

Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of

investments classifies

as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100

Provisions against off-

balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up


Profit before taxation 1794720 4535552 2565945 69944 1768 100

Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom- Current 1730051 1726810 476226

- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100

Profit after taxation 1301301 3130229 1962691 66302 1595 100

Attributable to

Unappropriated profit

brought forward4851840 2823072 1886845

Transferred from

surplus on revaluation

of fixed assets - net of

tax

24586 24585 26074 94293 9429 100

Profit available for

appropriation6177727 5977886 3675610 16807 1626 100

b) Vertical Analysis

It is a method of financial statement analysis in which each entry for each of the three

major categories of accounts (assets liabilities and equities) in a balance sheet is

represented as a proportion of the total account The main advantages of analyzing a

balance sheet in this manner are that the balance sheets of businesses of all sizes can

easily be compared It also makes it easy to see relative annual changes in one business

When using vertical analysis the analyst calculates each item on a single financial

statement as a percentage of a total The term vertical analysis applies because each years

figures are listed vertically on a financial statement The total used by the analyst on the

income statement is net sales revenue while on the balance sheet it is total assets This

approach to financial statement analysis also known as component percentages produces

common-size financial statements Common-size balance sheets and income statements

can be more easily compared whether across the years for a single company or across

different companies


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VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006

(Rupees in lsquo000rsquo)Vertical Analysis

2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomBank

Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006

2008 2007 2006 Vertical Analysis


Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


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wwwvunewblogspotcomOther provisions

write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



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VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


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wwwvunewblogspotcomDeposits and

other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


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VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return interest

earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923

Provision for diminution

in value of investment1479062 476 0 0


directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996


income after provisions7172032 6786197 5259357 23101 2632 24818

Non mark-up interest

income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




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wwwvunewblogspotcomGain on sale of securities 424220 2053192 180751 13664 7963 08529

Unrealized loss on

revaluation of investments

classifies as held for

trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense

Administrative expenses 10741399 8272587 5874745 59158 38424 21286


balance sheet obligations28582 6959 0 22908 0042 0

Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845

Transferred from surplus

on revaluation of fixed

assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcomProfit available for

appropriation6177727 5977886 3675610 19898 2318 17345

3 Review of Descriptive Information

Habib Bank Limited

These financial statements have been prepared in accordance with approved accounting

standards as applicable in Pakistan Approved accounting standards comprise of such

International Financial Reporting Standards issued by the International Accounting

Standards Board as are notified under the Companies Ordinance 1984 provisions of and

directives issued under the Companies Ordinance 1984 and Banking Companies

Ordinance 1962 and the directives issued by State Bank of Pakistan (SBP) In case the

requirements of provisions and directives issued under the Companies Ordinance 1984

and Banking Companies Ordinance 1962 and the directives issued by SBP differ the

provisions of and directives issued under the Companies Ordinance 1984 and Banking

Companies Ordinance 1962 and the directives issued by SBP shall prevail

Amended IAS 27 Consolidated and Separate Financial Statements (effective for annual

periods beginning on or after 1 July 2009) requires accounting for changes in ownership

interest by the group in a subsidiary while maintaining control to be recognized as an

equity transaction When the group loses control of subsidiary any interest retained in the

former subsidiary will be measured at fair value with the gain or loss recognized in the

profit or loss The application of the standard is not likely to have an effect on the

Groups financial statements The auditors conducted their audit in accordance with the

auditing standards as applicable in Pakistan These standards require that they plan and

perform the audit to obtain reasonable assurance about whether the above said statements

are free of any material misstatement And in their opinion the consolidated financial

statements present fairly the financial position of Habib Bank Limited as at December 31

2006 2007 amp 2008 and the results of its operations its cash flows and changes in equity

for the year then ended in accordance with the approved accounting standards as

applicable in Pakistan


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wwwvunewblogspotcomBank Al Falah Limited

The financial statements prepared by the management present fairly its state of affairs

the results of its operating cash flow and changes in equity All directors of the company

are registered as tax payers and none of them has default in payments of any loan to a

banking company The auditors perform their audit in accordance with the auditing

standards as applicable in Pakistan These standards require that they plan and perform

the audit to obtain reasonable assurance about whether the above said statements are free

of any material misstatement And in their opinion the consolidated financial statements

present fairly the financial position of Habib Bank Limited as at December 31 2006

2007 amp 2008 and the results of its operations its cash flows and changes in equity for the

year then ended in accordance with the approved accounting standards as applicable in

Pakistan

The board of directors through its sub committee called Board Risk Management

Committee (BRMC) oversees the overall risk of the bank RMD is the organizational arm

performing the functions of identifying measuring monitoring and controlling the

various risks and assists the Apex level committee and the various sub- committees in

conversion of policies into action

Credit risk Management processes encompasses identification assessment measurement

monitoring and control of the credit exposures The bank as per State Bank of Pakistan

Guidelines has migrated to baseII as on January with the standardized approach

4 Comparisons

Financial trend analysis is an applied practical approach for monitoring the financial

condition of any company through the use of financial indicators I shall use technique to

compare previous three-year period data and observes how they change This would

permit an assessment of the current financial condition

a) Trend Analysis

A firms present ratio is compared with its past and expected future ratios to determine

whether the companys financial condition is improving or deteriorating over time Trend


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wwwvunewblogspotcomanalysis studies the financial history of a firm for comparison By looking at the trend of

a particular ratio one sees whether the ratio is falling rising or remaining relatively

constant This helps to detect problems or observe good management

TREND ANALYSIS

HABIB BANK LIMITED

for the years 2006 2007 amp 2008

Performance Area 2006 2007 2008 Trend

a) Liquidity Ratios

Current Ratio120 119 116

Lower liquidity in

2008

Sales to Working Capital 05 times 05 times 06 times Increase in 2008

Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios

Time Interest Earned 243 179 183 Lower since 2008

Debt Ratio091 091 09

Leverage remain

same

Debt to Equity Ratio1188 1142 958

Drops in leverage in

2008

Current Worth Net worth

Ratio178 166 133

Higher in 2006

Total Capitalization Ratio 056 053 042 Lower during 2008

Long term Assets versus Long

term Debt026 033 051


2006


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wwwvunewblogspotcomDebt Coverage Ratio

002 0008 00083Lower coverage in

2006


Net Profit Margin2907 1997 2466

Lower profitability

during 2007

Operating Income Margin579 48 596

Increased Profitability

since 2008

Return on Assets227 157 215

Lower ROA during

2007

Operating Assets Turnover1927 1927 17470

Lower efficiency

since 2008

Return on Operating Assets1348 1037 1119

Lower efficiency in

2007

Sales to Fixed Assets365 times 366 times 366 times

No change in last 3

years

d) Activity Ratios

Total Asset Turnover007 007 008

Higher efficiency

since 2008

e) Market Ratios

Dividend per Share ndash DPS10019 20014 3597

Good market

perceptions

Earning Per Share- EPS 1841 1461 2057 Higher In 2008

Price Earning Ratio 054 068 049 Lower in 2008

Dividend Payout Ratio00544 0137 0175

Good market

perceptions

Dividend Yield 010019 020014 03597 Lower in 2006


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65 798 939Good market

perceptions

f) Statement of cash flow

Operating Cash Flow to Total

Debt0033 0089 0027

Lower in 2006

Operating Cash Flow per

Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007

Sales to Working Capital 138 085 157 Increase in 2008

Working Capital 15276529 30128884 19741302 Lower liquidity in

2006

b) Leverage Ratios


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wwwvunewblogspotcomTime Interest Earned 116 127 108

Lower since 2008


Leverage remain

same

Debt to Equity Ratio 2491 2271 2272 Drops in leverage in

2008


Ratio

1247185 115 Higher during 2007

Total Capitalization Ratio 0561487909 0652339509 05299458 Increased during

2007

Long term Assets versus

Long term Debt

101 046 063 Higher during

leverage in 2006

Debt Coverage Ratio 0055321869 0048350633 00508531 Lower coverage in

2007


Net Profit Margin 008012 004

Lower profitability

during 2006


Increased

Profitability since

2006

Return on Assets 0012776185 0010355041 00038393 Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2008

Sales to Fixed Assets 2017 times 216 times 225 times Lower in 2006

d) Activity Ratios


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wwwvunewblogspotcomTotal Asset Turnover

007 007 008Higher efficiency

since 2008

e) Market Ratios

Dividend per Share ndash DPS00 00

121 Dividend announced

just in 2008




Good market

perceptions

Dividend Yield00 00 0121

No Dividend in 2006

amp 2007

Book Value per Share211 211 182

Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007

b) Industry Averages and Comparisons with Competitors

The entire ratio has been compared through above mentioned comparisons and analysis

Which include horizontal analysis vertical analysis and trend analysis

c) Summary



performance of the firm This report mainly deals with the insight information of the two

mentioned companies In the current picture where financial volatility is endemic and


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wwwvunewblogspotcomfinancial intuitions are becoming popular when it comes to investing the sound analysis

of financial statements is one of the most important elements in the fundamental analysis

process At the same time the massive amount of numbers in a companys financial

statements can be bewildering and intimidating to many investors However through

financial ratio analysis I tried to work with these numbers in an organized fashion and

presented them in a summarizing form easily understandable to both the management and

interested investors

It is required by law that all private and public limited companies must prepare the

financial statements like income statement balance sheet and cash flow statement of the

particular accounting period The management and financial analyst of the company

analyze the financial statements for making any further financial and administrative

decisions for the betterment of the company Therefore I select this topic so that I have

done some solid financial analysis that will certainly help the management of review their

performance and also assist the interested people like investors and creditors That as a

financial analyst how can I make any important financial decision by analyzing the

financial statements of the company Because it is the primary responsibility of the

financial managers or financial analyst to manage the financial matters of the company

by evaluating the financial statements I am also providing some important suggestions

and opinions about the financial matters of the business

d) Conclusion Findings

I compare and analysis the financial statements of Habib Bank Limited and Bank Al

Falah Limited

Liquidity position of both companies is not up to standard both are below

industry average but the liquidity position of Habib Bank is better from Bank

AL Falah Limited Working capital of Habib Bank is better than Bank La

Falah but both companies must improve their liquidity position

Leverage ratios indicate the high risk associated with both the companies

Generally leverage ratios measures the percentage of funds provided by the


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wwwvunewblogspotcomcreditors The proportion of a firmrsquos total assets is being financed with high

percentage of borrowed funds

Profitability ratios of Habib Bank Limited are better than Bank AL Falah

Limited Net profit of Bank Al falah Limited is low due to heavy financial

charges

Habib Bank has a good market perception due to continuous declaration of

dividends but on the other hand Bank LA Falah limited has not announced in

dividend in the year 2006 and 2007

Book value per share of Habib Bank Limited is much higher than the Al

Falah Bank It is the Indication of the net worth of the corporation Somewhat

similar to the earnings per share but it relates the stockholders equity to the

number of shares outstanding giving the shares a raw value So the net worth

of Habib Bank is better than Al Falah Bank

Earning per Share and Operating cash flow of Habib Bank Limited is also

better than Bank AL Falah Limited

e) Recommendation

This section deals with your proposed solutions or plans to cover and remove all the ills

and deficiencies that you think (in light of data processing and analysis) needs to be removed

or improved Recommendations should be vivid lucid and based on your findings They

must be logical and applicable


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Section II

a) Introduction of the student

1048707 Bcom (2 Years)

1048707 Warsan Homoeopathic Laboratories

1048707 Assistant Accounts Officer

1048707 2 Years Experience


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b) AppendixAppendices

IS h e i k h W a q a s A h m e d

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IIS h e i k h W a q a s A h m e d

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IIIS h e i k h W a q a s A h m e d

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IVS h e i k h W a q a s A h m e d

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VS h e i k h W a q a s A h m e d

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VIS h e i k h W a q a s A h m e d

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VIIS h e i k h W a q a s A h m e d

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VIIIS h e i k h W a q a s A h m e d

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IXS h e i k h W a q a s A h m e d

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XS h e i k h W a q a s A h m e d

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XIS h e i k h W a q a s A h m e d

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XIIS h e i k h W a q a s A h m e d

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XIIIS h e i k h W a q a s A h m e d

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XIVS h e i k h W a q a s A h m e d

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XVS h e i k h W a q a s A h m e d

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XVIS h e i k h W a q a s A h m e d

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XVIIS h e i k h W a q a s A h m e d

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XVIIIS h e i k h W a q a s A h m e d

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XIXS h e i k h W a q a s A h m e d

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c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom

httpwwwcanadaonecomtoolsratiosdebt_equityhtml

Financial Statement Analysis A Practitioners Guide 3rd Edition

Ross SA RW Westerfield and BD Jordan Essentials of Corporate Finance

(1999) 2nd Edition IrwinMcGraw-Hill

Ross SA RW Westerfield and J Jaffe Corporate Finance (1999) 5th Edition

IrwinMcGraw-Hill

Scott DF JD Martin JW Petty and A Keown Basic Financial Management

(1999) 8th Edition Prentice-Hall Inc

d) Index

An index is an alphabetical list of names places and subjects mentioned in the report

along with the page on which they occur They are rarely included in unpublished

reports

XXS h e i k h W a q a s A h m e d

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14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

DedicationI would like to dedicate this project to my parents who have always encourage me

throughout in my academic career and make possible for me to stand where I am today


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and techniques





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TABLE OF CONTENT

Section I


























M c 0 7 0 4 0 0 4 7 9













Section I

a) Introduction


















M c 0 7 0 4 0 0 4 7 9




























investors





M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









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Stock exchange


Case Study












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1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



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Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom











and techniques





M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom








M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

TABLE OF CONTENT

Section I


























M c 0 7 0 4 0 0 4 7 9













Section I

a) Introduction


















M c 0 7 0 4 0 0 4 7 9




























investors





M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom








M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

TABLE OF CONTENT

Section I


























M c 0 7 0 4 0 0 4 7 9













Section I

a) Introduction


















M c 0 7 0 4 0 0 4 7 9




























investors





M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

TABLE OF CONTENT

Section I


























M c 0 7 0 4 0 0 4 7 9













Section I

a) Introduction


















M c 0 7 0 4 0 0 4 7 9




























investors





M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets















Section I

a) Introduction


















M c 0 7 0 4 0 0 4 7 9




























investors





M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






























investors





M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets



































M c 0 7 0 4 0 0 4 7 9























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


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HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets

























Vision


Mission








M c 0 7 0 4 0 0 4 7 9






















Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



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e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


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HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


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Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets
























Vision



Mission




bankrdquo



National Banks


M c 0 7 0 4 0 0 4 7 9

































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets



































M c 0 7 0 4 0 0 4 7 9



policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





policy



bank















time












M c 0 7 0 4 0 0 4 7 9

























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets



























includes









M c 0 7 0 4 0 0 4 7 9




















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






















Stock exchange


Case Study












M c 0 7 0 4 0 0 4 7 9



1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





1 RATIO ANALYSIS






















a) Liquidity Ratios

b) Leverage Ratios


d) Activity Ratios

e) Market Ratios



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

Ratio Analysis

a) Liquidity Ratios


Current Ratio








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693



Year 2006 2007 2008

Current Assets 265182551 316972828 335217471








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




of resources

BANK AL FALAH



Working Capital






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Sales 43685740 43685740 63305033

Working Capital 95155274 104938111 100006655

Sales to Working

Capital


Year 2006 2007 2008

Sales 21191470 25783871 31046583

Working Capital 15276529 30128884 19741302





HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



BANK AL FALAH



b) Leverage Ratios









These include


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Assets 575611106 671597594 731954693


Working Capital 95155274 104938111 100006655

Year 2006 2007 2008

Current Assets 265182551 316972828 335217471


Working Capital 15276529 30128884 19741302









HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



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e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


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HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets











HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK






BANK AL FALAH



years

Debt Ratio



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

EBIT 32044524 34298574 48559935


TIE ratio 243 179 183

Year 2006 2007 2008

EBIT 17798831 21156515 22125914


TIE ratio 116 127 108








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



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e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



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HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


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HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


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VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


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Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets










HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


BANK AL FALAH












M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Assets 590291468 691991521 75792889


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Assets 275685541 328895152 348990764






financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets







financing

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


three years

BANK AL FALAH








HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total debt 536848102 628754092 682747953

Total Equity 45177664 55063125 71280902


Year 2006 2007 2008

Total debt 263443596 312675308 331946025

Total Equity 10572605 13766673 14608523


Year 2006 2007 2008

Current Worth 95155274 104938111 100006655

Net Worth 53443366 63237429 75180436


worth Ratio

178 166 133



Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Interpretation

HABIB BANK



BANK AL FALAH










leverage

HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Current Worth 15276529 30128884 19741302

Net Worth 12241945 16219844 17044739


worth Ratio

1247 185 115

Year 2006 2007 2008

Long Term debt 56392270 62094609 50799915



worth Ratio

056 053 042

Year 2006 2007 2008


worth Ratio

056 065 052



HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





HABIB BANK


years

BANK AL FALAH




HABIB BANK

BANK AL FALAH

Debt Coverage Ratio


HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Long Term Assets 14680362 20393927 25973696

Long term debt 56392270 62094609 50799915

LT Assets LT Debts

Debtworth Ratio

026 033 051

Year 2006 2007 2008

Long Term Assets 13773293 11922324 10502990

Long term debt 13537574 25831364 16469856

LT Assets LT Debts

worth Ratio

101 046 063

Year 2006 2007 2008


Total Debt 536848102 628754092 682747953

Debt Coverage Ratio

Debtworth Ratio

002 0008 00083

Year 2006 2007 2008


Total Debt 263443596 312675308 331946025

Debt Coverage Ratio

worth Ratio

0055321869 0048350633 00508531














Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets
















Net Profit Margin






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Sales 43685740 50481021 63305033


Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Sales 21191470 25783871 31046583





BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






BANK AL FALAH





Net Sales




HABIB BANK

BANK AL FALAH

Return on Assets







M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033

Operating Income

Margin

579 48 596

Year 2006 2007 2008



Margin

0687738604 0586337443 05437148




HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH




Total Equity









M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020


ROA 227 157 215

Year 2006 2007 2008

Net income 1762691 3130229 1301301



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH






Total Assets

HABIB BANK


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net income 12700315 10084037 15614020

Total Equity 45177664 55063125 71280902ROE 2811 1831 219

Year 2006 2007 2008

Net income 1762691 3130229 1301301

Total Equity 10572605 13766673 14608523ROE 166 225 89

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020

Total assets 590291468 691991521 757928389






Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets







Net Sales

HABIB BANK

BANK AL FALAH


2008

Operating Assets




110591707

2007

Operating Assets





M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301

Total assets 275685541 328895152 348990764

DuPont ROA 0006 0009 0003

Year 2006 2007 2008


Net Sales 43685740 50481021 63305033


Margin

1927 1927 17470

Year 2006 2007 2008



Margin

241 231 219



2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





2006

Operating Assets




94230402


2008

Operating Assets




51094302

2007

Operating Assets




59739440

2006

Operating Assets




68041671


M c 0 7 0 4 0 0 4 7 9




Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






Operating assets

Habib Bank

Year 2006 2007 2008

Net Profit 12700315 10084037 15614020



BANK AL FALAH




HABIB BANK

BANK AL FALAH

d)

Activity Ratios


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Net Profit 1762691 3130229 1301301



Year 2006 2007 2008

Net Sales 43685740 50481021 63305033

Fixed Assets 11954876 13780555 14751252


Year 2006 2007 2008

Net Sales 21191470 25783871 31046583

Fixed Assets 10502990 11922324 13773293






assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets







assets etc








HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK



and 2008

BANK AL FALAH




M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Total Sales 43685740 50481021 63305033

Total Assets 590291468 691991521 757928389


Year 2006 2007 2008

Total Sales 21191470 25783871 31046583

Total Assets 275685541 328895152 348990764



wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

e) Market Ratio







Or


Habib Bank

Year 2006 2007 2008

Total amount of

Dividend

691350 1381000 2730251

Number of Shares 690000 690000 759000


Bank al falah

Year 2006 2007 2008

Total amount of

Dividend

00 00 975000

Number of Shares 500000 650000 799500





Number of Shares





M c 0 7 0 4 0 0 4 7 9



valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





valuation ratio

HABIB BANK

BANK AL FALAH

Price Earning Ratio


Earning Per Shares


















M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Number of Shares 690000 690000 759000


Year 2006 2007 2008


Number of Shares 500000 650000 799500



wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

HABIB BANK

BANK AL FALAH

Interpretation

HABIB BANK




BANK AL FALAH





Earning per Share






dividend payment


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


EPS 1841 1461 2057


Year 2006 2007 2008


EPS 3525 4815 1627




BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





BANK AL FALAH

Dividend Yield


Share Price










HABIB BANK

BANK AL FALAH


M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

DPS 10019 20014 3597

EPS 1841 1461 2057


Year 2006 2007 2008

DPS 00 00 121

EPS 3525 4815 1627


Year 2006 2007 2008

DPS 10019 20014 3597


Dividend Yield 010019 020014 03597

Year 2006 2007 2008

DPS 00 00 121






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






Share Capital






undervalued

HABIB BANK

BANK AL FALAH

f)






company






M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008

Equity 45177664 55063125 71280902

Share Capital 6900000 6900000 7590000


Year 2006 2007 2008

Equity 10572605 13766673 14608523

Share Capital 5000000 6500000 7995000






HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets







HABIB BANK

BANK AL FALAH



HABIB BANK

BANK AL FALAH



M c 0 7 0 4 0 0 4 7 9

Year 2006 2007 2008


Total Debts 536848102 628754092 682747953


Year 2006 2007 2008


Total Debts 263443596 312675308 331946025


Year 2006 2007 2008


Total Shares 690000 690000 759000


Year 2006 2007 2008


Total Shares 500000 650000 799500





















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






















HORIZONTAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances


Balances with

other banks39307321 27020704 35965048 10929 7513 100


M c 0 7 0 4 0 0 4 7 9



financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





financial

institutions

6193787 1628130 6550128 9456 2486 100

Investments 13814592 177942251 119587476 11552 1488 100

Advances 456355507 382172734 349432685 1306 1094 100

Other assets 35419252 27346111 17765291 19937 1539 100

Operating fixed

assets14751252 13780555 11954876 12339 1153 100


TOTAL ASSETS 757928389 691991521 590291468 1284 1172 100

LIABILITIES

Bills payable 9944257 15418230 5737457 17332 2687 100

Borrowings from

financial

institutions

46844890 58994609 56392270 8307 1046 100

Deposits and other

accounts597090545 531298127 459140198 13005 1157 100


Liabilities against

assets subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 12718 1171 100

NET ASSETS 75180436 63237429 53443366 14067 1183 100

REPRESENTED BY

Shareholders Equity


M c 0 7 0 4 0 0 4 7 9



Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Reserves 24243254 19821455 17802584 13618 1113 100

Unappropriated

profit39447648 28341670 20 475080 15992 128 100

Total equity

attributable to the

equity holders of

the Bank

71280902 55063125 45177664 15778 1219 100


Surplus on

revaluation of

assets - net of tax

3009435 7208662 7352385 40931 9805 100

TOTAL EQUITY 75180436 63237429 53443366 14067 1183 100

HORIZONTAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 14491 1156 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 12066 1028 100

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 24116 2877 100


M c 0 7 0 4 0 0 4 7 9



against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





against off-

balance sheet

obligations

372598 (54626) (45438) -82001 1202 100

Charge (reversal)

of provision

against diminution

in the value of

investments

1909887 (84310) (13697) -13944 6155 100

Bad debts written

off directly---------- ---------- -------------

9187404 8099291 2804072

Net mark-up

interest income

after provisions

27592073 23227773 27677631 99691 8392 100

Fee commission

and brokerage

income

4518408 3420051 3931710 11492 8699 100

Income gain on

investments 2369233 2472663 1219623 19426 2027 100

Income from

dealing in foreign

currencies

2374318 1487374 1102358 21539 1349 100

Gain on

investments in

associate

4000330 ------- 0 0 0 0

Other income 3116522 2643076 2235805 13939 1182 100

Total non-mark-up

interest income 16378811 10023164 8489496 19293 1181 100

43970884 33250937 36167127 12158 9194 100

Non mark-up


M c 0 7 0 4 0 0 4 7 9



Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Administrative

expenses21348016 18297279 15425461 13839 1186 100

Other provisions

write offs - net200163 276111 122510 16339 2254 100

Other charges 64751 85152 54898 11795 1551 100

Workers welfare

fund323575

Total non mark-up


Profit before

taxation22034379 15144617 18840487 11695 8038 100

Taxation

- Current 866115 7220717 7144846 0 1011 100

- Prior years 233100 1668562 (39067) -59667 -4271 100

- Deferred (2473891) (3828699) (965607) 2562 3965 100

6420359 10084037 12700315 50553 794 100

Profit after

taxation15614020 10084037 12700315 12294 794 100

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 123 7918 100


15614020 10084037 12700315 12294 794 100

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

HORIZONTAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and balances

with treasury

banks

11841 29436378 27859360 11841 1057 100

Balances with

other banks1695 18380738 12731952 1695 1444 100

Lending to

financial

institutions

26616 3452059 12456653 26616 2771 100

Investments 13446 88491564 56502210 13446 1566 100

Advances 13288 171198992 144999325 13288 1181 100

Operating fixed

assets13114 11922324 10502990 13114 1135 100


Other assets 15958 6013097 5633051 15958 1067 100

TOTAL 12659 328895152 275685541 12659 1193 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





LIABILITIES 0

Bills payable 11168 4138243 3091135 11168 1339 100

Borrowings

from financial

institutions

16309 21230697 8394130 16309 2529 100

Deposits and

other accounts12556 273173841 239509391 12556 1141 100

Sub-ordinate

loans79798 3220858 3222106 79798 9996 100

Liabilities

against assets

subject to

finance lease

0 0 0 0

Deferred tax

liability1085 1379809 1921338 1085 7182 100


TOTAL

LIABILITIES126 312675308 263443596 126 1187 100

NET ASSETS 13923 16219844 12241945 13923 1325 100

REPRESENTED BY

SHAREHOLDERS EQUITY

Share capital 1599 6500000 5000000 1599 130 100

Reserves 11515 2414833 2749533 11515 8783 100

Unappropriated

profit12212 4851840 2823072 12212 1719 100

13817 13766673 10572605 13817 1302 100

Surplus on

revaluation of

14594 2453171 1669340 14594 147 100


M c 0 7 0 4 0 0 4 7 9



TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





TOTAL

EQUITY13923 16219844 12241945 13923 1325 100

HORIZONTAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned31046583 25783871 21191470 14651 1217 100

Mark-up return



income10715389 9162908 5958584 17983 1538 100



advances - net

2035997 2370867 697690 29182 3398 100

Provision for


investment

1479062 0 0 0


directly28298 5844 1537 18411 3802 100

3543357 2376711 699227 50675 3399 100


income after

7172032 6786197 5259357 13637 129 100


M c 0 7 0 4 0 0 4 7 9



Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Non mark-up

interest income

Fee commission and


Dividend income 300943 64722 37393 80481 1731 100



Gain on sale of

securities424220 2053192 180751 2347 1136 100

Unrealized loss on

revaluation of


as held for trading

181571 21530 27599 65789 7801 100

Other income 1247669 1031372 842099 14816 1225 100

Total non-mark-up

interest income 5245427 6038466 3224639 16267 1873 100

12417459 12824663 8483996 14636 1512 100

Non mark-up

interest expense

Administrative

expenses10741399 8272587 5874745 18284 1408 100


balance sheet

obligations

28582 6959 0 0 0 0

Other charges 122758 9565 43306 28347 2209 100

Total non mark-up



Taxation 0 0 0


M c 0 7 0 4 0 0 4 7 9



- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





- Prior years 221797 0 100874 21988 0 100

- Deferred 1014835 321487 427902 23717 7513 100

493419 1405323 803254 61428 175 100


Attributable to


brought forward4851840 2823072 1886845

Transferred from



tax

24586 24585 26074 94293 9429 100


appropriation6177727 5977886 3675610 16807 1626 100














different companies


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

VERTICAL ANALYSIS

HABIB BANK

BALANCE SHEET

AS ON AS ON DEC 31 2008 2007 amp 2006


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

56533134 55487664 46310478 74589 8019 78454

Balances with

other banks39307321 27020704 35965048 51862 3905 60928

Lending to

financial

institutions

6193787 1628130 6550128 08172 0235 11096

Investments 13814592 177942251 119587476 18227 2571 20259

Advances 456355507 382172734 349432685 60211 5523 59197

Other assets 35419252 27346111 17765291 46732 3952 30096

Operating

fixed assets14751252 13780555 11954876 19463 1991 20252

Deferred tax

asset11222444 6613372 2725486 14807 0956 04617

TOTAL 757928389 691991521 590291468 100 100 100


M c 0 7 0 4 0 0 4 7 9



LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





LIABILITIES

Bills payable 9944257 15418230 5737457 1312 2228 0972

Borrowings

from financial

institutions

46844890 58994609 56392270 61806 8525 95533

Deposits and

other accounts597090545 531298127 459140198 78779 7678 77782

Sub-ordinate

loans 3954925 3100000 0 05218 0448

Liabilities

against assets

subject to

finance lease


Deferred tax

liability------- ----------- ---------

TOTAL

LIABILITIES682747953 628754092 536848102 90081 9086 90946

NET ASSETS 75180436 63237429 53443366 9919 914 9054

REPRESENTED BY

Shareholders Equity

Share capital 7590000 6900000 6900000 1001 1 1169

Reserves 24243254 19821455 17802584 3199 286 3016

Unappropriate

d profit39447648 28341670 20 475080 5205 41 3287

Total equity

attributable to

the equity

holders of the

71280902 55063125 45177664 9405 796 7653


M c 0 7 0 4 0 0 4 7 9



Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Minority

interest 890099 965642 913317 0117 014 0155

Surplus on

revaluation of

assets - net of

tax

3009435 7208662 7352385 0397 104 1246

TOTAL

EQUITY75180436 63237429 53443366 9919 914 9054

VERTICAL ANALYSIS

HABIB BANK


AS ON DEC 31 2008 2007 amp 2006



Mark-up return

interest earned63305033 50481021 43685740 100 100 100

Mark-up return


Net mark-up

interest income36779477 31327064 30481703 58099 6206 69775

Provision against

non-performing

loans and

advances - net

6904919 8238227 2863207 10907 1632 65541

Charge (reversal)

against off-

balance sheet

obligations

372598 (54626) (45438) 05886 -0108 -0104


M c 0 7 0 4 0 0 4 7 9



of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





of provision

against diminution

in the value of

investments

1909887 (84310) (13697) 3017 -0167 -0031

Bad debts written

off directly---------- ---------- ------------- 0 0 0

9187404 8099291 2804072 14513 1604 64187

Net mark-up

interest income

after provisions

27592073 23227773 27677631 43586 4601 63356

Fee commission

and brokerage

income

4518408 3420051 3931710 71375 6775 9

Income gain on

investments 2369233 2472663 1219623 37426 4898 27918

Income from

dealing in foreign

currencies

2374318 1487374 1102358 37506 2946 25234

Gain on

investments in

associate

4000330 ------- 0 63191 03162 0

Other income 3116522 2643076 2235805 4923 5236 51179

Total non-mark-

up interest

income

16378811 10023164 8489496 25873 1986 19433

43970884 33250937 36167127 69459 6587 82789

Non mark-up

interest expense

Administrative

expenses21348016 18297279 15425461 33722 3625 3531


M c 0 7 0 4 0 0 4 7 9



write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





write offs - net200163 276111 122510 03162 0547 02804

Other charges 64751 85152 54898 01023 0169 01257

Workers welfare

fund323575 05111 0 0

Total non mark-up


Profit before

taxation22034379 15144617 18840487 34807 30 43127

Taxation

- Current 866115 7220717 7144846 0 143 16355

- Prior years 233100 1668562 (39067) 03682 3305 -0089

- Deferred (2473891) (3828699) (965607) -3908 -7584 -221

6420359 10084037 12700315 10142 1998 29072

Profit after

taxation15614020 10084037 12700315 24665 1998 29072

Attributable to

Equity holders of

the Bank15535011 10000231 12630259 2454 1981 28912


15614020 10084037 12700315 2466 20 2907

Basic and diluted



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

VERTICAL ANALYSIS


BALANCE SHEET

AS ON DEC 31 2008 2007 amp 2006

Years


2008 2007 2006

ASSETS 2008 2007 2006

Cash and

balances with

treasury banks

32987335 29436378 27859360 94522 895 10105

Balances with

other banks21581043 18380738 12731952 61838 5589 46183

Lending to

financial

institutions

3315500 3452059 12456653 095 105 45184

Investments 75973238 88491564 56502210 21769 2691 20495

Advances 192671169 171198992 144999325 55208 5205 52596

Operating

fixed assets13773293 11922324 10502990 39466 3625 38098

Other assets 8989186 6013097 5633051 25758 1828 20433

TOTAL

ASSETS348990764 328895152 275685541 100 100 100

LIABILITIES

Bills payable 3452031 4138243 3091135 09891 1258 11213

Borrowings

from financial

institutions

13690222 21230697 8394130 39228 6455 30448


M c 0 7 0 4 0 0 4 7 9



other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





other accounts300732858 273173841 239509391 86172 8306 86878

Sub-ordinate

loans2571169 3220858 3222106 07367 0979 11688

Liabilities

against assets

subject to

finance lease

Deferred tax

liability208465 1379809 1921338 00597 042 06969


TOTAL

LIABILITIES331946025 312675308 263443596 95116 9507 95559

NET ASSETS 17044739 16219844 12241945 4884 493 4441

REPRESENTED BY

Shareholders Equity

Share capital 7995000 6500000 5000000 2291 198 1814

Reserves 3166056 2414833 2749533 0907 073 0997

Unappropriated

profit3447467 4851840 2823072 0988 148 1024

14608523 13766673 10572605 4186 419 3835

Surplus on

revaluation of

assets - net of tax

2436216 2453171 1669340 0698 075 0606

TOTAL

EQUITY17044739 16219844 12241945 4884 493 4441


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

VERTICAL ANALYSIS



AS ON DEC 31 2008 2007 amp 2006




earned31046583 25783871 21191470 100 100 100


expensed20331194 16620963 15232886 65486 6446 71882


income10715389 9162908 5958584 34514 3554 4123



advances - net

2035997 2370867 697690 655 9195 32923




directly28298 5844 1537 0091 0023 00073

3543357 2376711 699227 11413 9218 32996




income

Fee commission and


Dividend income 300943 64722 37393 09693 0251 01765




M c 0 7 0 4 0 0 4 7 9



Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Unrealized loss on



trading

181571 21530 27599 05848 0084 01302

Other income 1247669 1031372 842099 40187 4 39738

Total non-mark-up

interest income 5245427 6038466 3224639 16895 2342 15217

12417459 12824663 8483996 13573 2703 21923


expense




Other charges 122758 9565 43306 23403 0058 1343

Total non mark-up



Taxation 0 0 0

- Current 1730051 1726810 476226 55724 6697

- Prior years 221797 0 100874 07144 0 0476

- Deferred 1014835 321487 427902 32687 1247 20192

493419 1405323 803254 15893 545 37905


Attributable to


brought forward4851840 2823072 1886845



assets - net of tax

24586 24585 26074 00792 0095 0123


M c 0 7 0 4 0 0 4 7 9



appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





appropriation6177727 5977886 3675610 19898 2318 17345


Habib Bank Limited


























M c 0 7 0 4 0 0 4 7 9













Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets















Pakistan









4 Comparisons





a) Trend Analysis




M c 0 7 0 4 0 0 4 7 9





TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets







TREND ANALYSIS

HABIB BANK LIMITED



a) Liquidity Ratios


Lower liquidity in

2008


Working Capital95155274 104938111 100006655

Lower liquidity in

2008

b) Leverage Ratios



Leverage remain

same



2008


Ratio178 166 133

Higher in 2006





2006


M c 0 7 0 4 0 0 4 7 9




2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






2006



Lower profitability

during 2007



since 2008


Lower ROA during

2007


Lower efficiency

since 2008


Lower efficiency in

2007


No change in last 3

years

d) Activity Ratios


Higher efficiency

since 2008

e) Market Ratios


Good market

perceptions




Good market

perceptions



M c 0 7 0 4 0 0 4 7 9




perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






perceptions



Debt0033 0089 0027

Lower in 2006


Share2587 8148 2402

Increased during

2007

TREND ANALYSIS




a) Liquidity Ratios


Higher liquidity in

2007



2006

b) Leverage Ratios


M c 0 7 0 4 0 0 4 7 9



Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets





Lower since 2008


Leverage remain

same


2008


Ratio



2007


Long term Debt


leverage in 2006


2007



Lower profitability

during 2006


Increased

Profitability since

2006


2007


Lower efficiency

since 2008


Lower efficiency in

2008


d) Activity Ratios


M c 0 7 0 4 0 0 4 7 9




since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets






since 2008

e) Market Ratios



just in 2008




Good market

perceptions


No Dividend in 2006

amp 2007


Good market

perceptions



Debt0029 0126 0007 Lower in 2008


Share1570 6099 312

Increased during

2007




c) Summary






M c 0 7 0 4 0 0 4 7 9























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets

























Falah Limited








M c 0 7 0 4 0 0 4 7 9






charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets








charges











e) Recommendation






M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

Section II







M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom



M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom


M c 0 7 0 4 0 0 4 7 9


wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets




wwwvunewblogspotcom

c) Bibliography

Vu hand Outs

Internet sources

wwwinvestopediacom

wwwbankalhabibcom

wwwhabibbankltdcom






IrwinMcGraw-Hill



d) Index



reports


M c 0 7 0 4 0 0 4 7 9

14751252


e) Market Ratio


95155274


Debt Coverage Ratio

Return on Assets



Debt Coverage Ratio

Return on Assets



FIN619-Project-VU

Documents

Transcript of FIN619-Project-VU