VERTICAL ANALYSIS

Balance Sheet
2013

Assets
Cash
with treasury banks

and

2012

Vertical Analysis

157,229,517

7.99%

9.76%

4 7,980,032

3.34%

2.97%

balance
135,476,687

Balances with other banks

57,341,769

Lending to Financial Institutions

35,271,477

2 4,828,255

2.1%

1.54%

Investments

826,062,308

797,094,548

48.17%

49.49%

Advances

563,700,737

4 99,817,906

32.86%

31.03%

Operating fix assets

25,706,315

2 3,632,324

1.5%

1.46%

Other assets

66,609,013

5 3,835,409

3.88%

3.34%

6 ,056,483

0.29%

0.376%

Deferred tax assets

Total Assets

5,103,072
1,715,271,378

1 ,610,474,474

100.00%

100.00%

Bills payable

19,422,316

18,943,207

1.23 %

1.28%

Borrowings

107,864,424

196,588,138

6.85%

13.30%

Deposits and other accounts

1,401,229,814

1,214,963,700

89.08%

82.21%

Sub-ordinate loan

2,633,115

5 ,440,654

0.167%

0.368%

Other liabilities

41,687,455

4 1,809,119

2.65%

2.829%

Total Liabilities

1,572,837,124

1,477,744,818

100%

100%

Net Assets

142,434,254

132,729,656

Share Capital

13,335,023

12,122,748

Reserves

43,550,373

3 9,379,354

Inappropriate Profit

73,748,915

67,215,111

Total equity

130,634,311

1 18,717,213

Surplus on revaluation of assets

9,913,827

1 2,785,236

1,886,116

1,227,207

142,434,254

132,729,656

Liabilities

Represented by : Share Holder equity

Non Controlling interest

Total Liabilities and equity

Vertical analysis
Income Statement
Rs in thousand

2013

2012

Vertical 2013

Vertical
2012

Markup/return/interest
earned

120,222,773

116,772,653

100.00

100.00

Markup/return/interest
expensed

65,207,109

59,012,392

54.23%

50.53%

Net
Markup/return/interest
earned income

55,015,664

57,760,261

45.76%

49.46%

Provision
against
performing loans and advances

1,602,738

7 ,243,887

1.33%

6.20%

Provision against off-balance sheet

obligation

22,427

7,015

0.018%

0.0060%

Provision against diminution in the

value of investment

(225,306)

(483,865)

-0.187%

-0.14%

Total provision

1,399,859

6,767,037

1.16%

5.79%

5 3,615,805

50,993,224

44.59%

43.66%

8,291,686

6 ,785,687

42.91%

42.51%

Share of profit of associates

1,785,462

1,690,100

9.1%

10.58%

Dividend income

759,345

490,213

3.93%

3.07%

Income from dealing in foreign

currency

2 ,299,131

2,568,079

11.90%

16.09%

Gain on sales of securities

2,313,847

1,360,596

11.97%

8.52%

Unrealized loss/ gain

(12,815)

25,253

-0.066%

0.158%

Other income

3,886,624

3 ,040,178

20.11%

19.05%

Net
markup/interest
after provisions

Non-markup/interest
income
Fee,
commission
brokerage income

non-

income

and

100%

100%

30,381,020

156.81%

133.299%

(48,390)

277,848

0.210%

1.219

Other charges

23,175

18,285

0.1..%

0.080%

Workers Welfare Fund

7 21,115

714,420

3.13%

3.13%

Total non mark-up / interest expenses

36,805,757

31,391,573

159.83%

137.73%

Profit before taxation

36,133,328

35,561,757

156.91%

156.03%

current

10,610,047

12,812,589

46.07%

56.21%

Prior years

(117,510)

4 21,210

-0.51%

1.85%

deferred

2,613,696

(463,640)

11.35%

-2,03%

Total taxation

13,106,233

12,770,159

56.91%

56.03%

Profit after taxation

23,027,095

22,791,598

100%

100%

Equity holders of the Bank

22,863,123

22,691,922

Non-controlling interest

(75,652)

(56,174)

Minority investor of HBL Funds

239,624

155,850

23,027,095

22,791,598

17.15

17.02

Total non mark-up interest income

1 9,323,280

15,960,106

Overall earning

72,939,085

66,953,330

Administrative expenses

36,109,857

Other provisions / write offs - net

Non mark-up / interest expense

Taxation

Basic and diluted earnings per

share

HORIZONTAL ANALYSIS
Balance Sheet
Assets
Cash
with treasury banks

and

2013

2012

Horizontal Analysis

135,476,687

157,229,517

(21752830)

-13.8%

9361737

19.51%

balance

Balances with other banks

57,341,769

Lending to Financial Institutions

35,271,477

2 4,828,255

10443222

42.06%

Investments

826,062,308

797,094,548

28967760

3.63%

Advances

563,700,737

4 99,817,906

63882831

12.78%

Operating fix assets

25,706,315

2 3,632,324

2073991

8.77%

Other assets

66,609,013

5 3,835,409

12773604

23.72%

6 ,056,483

(953411)

-15.7%

Deferred tax assets

Total Assets

5,103,072

4 7,980,032

1,715,271,378

1 ,610,474,474

104796904

6.5%

Bills payable

9,422,316

18,943,207

Borrowings

107,864,424

196,588,138

(88723714)

-45.1%

Deposits and other accounts

1,401,229,814

1,214,963,700

186266114

15.3%

Sub-ordinate loan

2,633,115

5 ,440,654

(2807539)

-51.6%

Other liabilities

41,687,455

4 1,809,119

( 121664)

-0.29%

Total Liabilities

1,572,837,124

1,477,744,818

95092306

6.4%

Net Assets

142,434,254

132,729,656

Share Capital

13,335,023

12,122,748

1212275

10%

Reserves

43,550,373

3 9,379,354

4171019

10.59%

Inappropriate Profit

73,748,915

67,215,111

6533804

9.7%

Liabilities
479109

9704598

2.5%

7.3%

Share Holder equity

Total equity

130,634,311

1 18,717,213

11917098

10.03%

Surplus on revaluation of assets

9,913,827

1 2,785,236

(2871409)

-22.4%

1,886,116

1,227,207

658909

53.69%

142,434,254

132,729,656

9704598

7.311%

Non Controlling interest

Total Liabilities and equity

Horizontal analysis
Income Statement
Rs in thousand

2013

2012

Horizontal
analysis

Markup/return/interest
earned

120,222,773

116,772,653

3450120

2.95%

Markup/return/interest
exp

65,207,109

59,012,392

6194717

10.49%

Net
Markup/return/interest
earned income

55,015,664

57,760,261

(2744597)

-4.75%

Provision
against
performing loans and advances

1,602,738

7 ,243,887

(5641149)

-77.87%

Provision against off-balance sheet

obligation

22,427

7,015

15412

219.7%

Provision against diminution in the

value of investment

(225,306)

(483,865)

(258559)

53.4%

Total provision

1,399,859

6,767,037

(5367178)

-79.31

5 3,615,805

50,993,224

2622581

5.14%

8,291,686

6 ,785,687

1505999

22.19%

Share of profit of associates

1,785,462

1,690,100

95362

5.64%

Dividend income

759,345

490,213

269132

54.90%

Income from dealing in foreign

currency

2 ,299,131

2,568,079

(268948)

-10.47%

Net
markup/interest
after provisions

Non-markup/interest
income
Fee,
commission
brokerage income

non-

income

and

Gain on sales of securities

2,313,847

1,360,596

953251

70.06%

Unrealized loss/ gain

(12,815)

25,253

(12483)

-49.25%

Other income

3,886,624

3 ,040,178

846446

27.8%%

1 9,323,280

15,960,106

3363174

21.07%

72,939,085

66,953,330

5985755

8.94%

Administrative expenses

36,109,857

30,381,020

5728837

18.86%

Other provisions / write offs - net

(48,390)

277,848

(326238)

117.41%

Other charges

23,175

18,285

4890

26.74%

Workers Welfare Fund

7 21,115

714,420

6695

0.937%

Total non mark-up / interest expenses

36,805,757

31,391,573

5414184

17.25%

Profit before taxation

36,133,328

35,561,757

571571

1.60%

current

10,610,047

12,812,589

(2202542)

-17.19%

Prior years

(117,510)

4 21,210

(538720)

127.89%

deferred

2,613,696

(463,640)

2150056

463.73%

Total taxation

13,106,233

12,770,159

336074

2.63%

Profit after taxation

23,027,095

22,791,598

235497

1.033%

Equity holders of the Bank

22,863,123

22,691,922

171201

0.75%

Non-controlling interest

(75,652)

(56,174)

19478

34.67%

Minority investor of HBL Funds

239,624

155,850

83774

53.75%

23,027,095

22,791,598

235497

1.033%

17.15

17.02

Total non mark-up interest income

Non mark-up / interest expense

Taxation

Basic and diluted earnings per

share

RATIO ANALYSIS
1)LIQUIDITY RATIO
=(Current assets/ current liabilities)
2012

2013

Current assets

230037804

228089933

Current Liabilities

1430495045

1528516554

Liquidity Ratio

0.16

0.14

Interpretation :
Current ratios are the relationship between current asset and current liabilities and show the
ability of the company to pay back its current liabilities by utilizing its current assets. The current
ratio for HBL in 2012 was 0.14 that increases in 2013 to 0.16.

2)TOTAL DEBT TO TOTAL ASSET RATIO

= (Current assets/ current liabilities)
2013

2012

Total Debt

1,572,837,124

1,477,744,818

Total assets

1,715,271,378

1 ,610,474,474

Total debt to total asset

0.916

0.9175

ratio

Interpretation:
Total debt includes both the current liabilities and long term debt. The table shows that in 2013
debt ratio was less and its was 0.916 which means that total debt are lower then total assets
.

3)TOTAL DEBT TO EQUITY RATIO

= (total debt/total equity)
2013

2012

Total Debt

1,572,837,124

1,477,744,818

Total equity

130,634,311

1 18,717,213

Total debt to equity ratio

12.04

12.44

Interpretation :
Debt equity ratio indicates the relationship between long term debt and the total equity of the
bank. In 2012 this ratio was 12.44 which decreases in 2013 to 12.04.

4)FIXED ASSETS /EQUITY RATIO

= (fixed assets/total equity)
2013

2012

Fixed assets

25,706,315

2 3,632,324

Total equity

130,634,311

1 18,717,213

Fixed asset / equity ratio

0.196

0.199

Interpretation:
This ration shows the relationship between fix assets and the equity held by the bank. This ratio
shows that how much times your fixed asset are of your equity. This ration stands at 0.199 in
2013 which means that the fixed asset are 0.199 time of the equity of bank.

5)WORKING CAPITAL
= (Current assets current liabilities )

2013

2012

Current assets

228089933

230037804

Current liability

1528516554

1430495045

Working capital

(1300426621)

(1200457241)

Interpretation
This ration is the difference between the current asset and current liabilities. That is the amount
used for day to day operations of the company. The ratio was less in 2012 while increase in
2013. It is good for the bank if the bank treats it like a reserve account.
6) RETURN ON ASSETS

= (Net income after tax/total assets *100)

2013

2012

Net Income

23,027,095

22,791,598

Total assets

1,715,271,378

1 ,610,474,474

Return on assets

1.34%

0.14%

Interpretation
This ration indicates the relationship between net profit and total assets. The main objective of an
organization is to maximize its return on assets. The ROA is maximum in 2013.

7) EARNING PER SHARE:

= ( N.P.A.T/No. Of outstanding shares)
2013
Net income

23,027,095

No of outstanding shares

1342688

EPS

17.15

2012
22,791,598

1339107
17.02

Interpretation
This ration indicates the relationship between number of outstanding shares and earning on them.
The main objective of an organization is to maximize return on shares. The EPS is maximum in
2013.

8) RETURN ON DEPOSIT:
= ( N.P.A.T * 100/Total Deposit)
2013

2012

Net income

23,027,095

22,791,598

Total deposits

1401230

1214964

ROD

1643.34

1875.90

Interpretation
This ration indicates the relationship between net profit and total deposits. The main objective of
an organization is to maximize its return on deposits. The ROA is maximum in 2012.

9)CASH/DEPOSIT RATIO:
= (cash/current liabilities) or (cash/current deposits)
2013

2012

cash

135,476,687

157,229,517

Total deposits

1401230

1214964

COD

96.68

129.410

Interpretation:
This ratio shows that the cash is enough for payment of current liabilities or not.

10) INTEREST INCOME/TOTAL INCOME RATIO:

= ( Interest Income /Total Income after tax )
2013

2012

Interest income

72,939,085

66,953,330

Total income

23,027,095

22,791,598

Interest income to total

income ratio

3.167

2.93

Interpretation:
This ratio describes the relationship between total interest earned and net income. The table
shows that ratio is greater in 2013.

11) AVERAGE PROFIT PER BRANCH:

= (net profit after tax /No. Of Branches)

2013

2012

Net profit

23,027,095

22,791,598

Noof branches

1594

1540

Avg profit per branch

14446.1072

14799.73

Interpretation:
This ratio describe the average profit per branch as number of branches increases in 2013
so there is a little decrease in average profit.