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Documenti di Cultura
Mc090404110
MBA
Finance
(Rs. in Million)
1,035,025
Deposits
Advances
832,152
477,507
Investments
Shareholders Equity
301,324
103,762
Pre-tax Profit
After-tax Profit
24,415
17,563
13.05
1,289
Number of Employees
16,457
Competitors of NBP
Competitors at Public Sector
First Women Bank Limited
The Bank of Khyber
The Bank of Punjab
(FWB)
(KB)
(BOP)
Executive
s
2. SEVP
3. EVP
4. SVP
5. VP
6. AVP
Officers
OG-II
OG-I
Cash
Dept.
Head Cashier
OG-III
Clerical
Staff
Assistant
Cashier
Non
Clerical
Staff
Peon, Guards
etc
Hierarchy of Branch
Branch
Manager
Credit Officer
Operations
Manager
HR Officer
Training Program
1)
2)
3)
Ratio Analysis
Financial Statements
Ratio
Analysis
1. Net
Profit
Margin
Year 2009
Year 2008
17,563,214/
88,472,134*100
=19.85%
17,561,846/
77,947,697*100
= 22.53%
15,458,590/
60,942,798*100
= 25.36%
Ratio
Analysis
2. Gross
Spread
Ratio
Year 2009
Year 2008
43,221,658/
88,472,134*100
= 48.85%
37,458,048/
77,947,697*100
= 48.05%
37,058,030/
60,942,798*100
= 60.80%
Ratio
Analysis
3. Non
Interest
Income
to Total
Income
Year 2009
Year 2008
17,632,640/
19,025,357/
16,415,862/
106,104,774*100 96,973,054*100 77,358,660*100
= 19.61%
= 21.22%
= 16.61%
Ratio
Analysis
4.Spread 88,472,134 /
Ratio
45,250,476
=1.95 times
Year 2009
77,947,697 /
40,489,649
= 1.92 times
Year 2008
60,942,798 /
23,884,768
= 2.55 times
Ratio
Analysis
5.Return
on
Assets
Year 2009
Year 2008
17,563,214/
17,561,846/
15,458,590/
1,035,024,680*100 944,582,762*100 817,758,326*100
= 1.69%
= 1.85%
= 1.89%
Year 2010
(Rs)
Year 2009
(Rs)
Year 2008
(Rs)
115,442,360
30,389,664
115,827,868 106,503,756
28,405,564
38,344,608
Lending to financial
institution-net
23,025,156
19,587,176
Investments-net
Advances-net
301,323,804
477,506,564
26,888,226
6,952,666
217,642,822 170,822,491
475,243,431 412,986,865
25,147,192
24,217,655
Other assets-net
Total
53,496,240
1,035,024,680 944,582,762 817,758,326
3,062,271
59,666,438
17,128,032
3,204,572
44,550,347
Ratio
Analysis
6.
Dupont
Return
on
Assets
Year 2009
Year 2008
((17,563,214/
88,472,134)*
(88,472,134/
1,035,024,680)*100
= 1.69%
((17,561,846/
77,947,697)*
(77,947,697/
944,582,762)*100
= 1.85%
((15,458,590/
60,942,798)*
(60,942,798/
817,758,326)*100
= 1.88%
Ratio
Analysis
7.Return
on Total
Equity
17,563,214/
103,762,310*100
= 16.92%
Year 2009
Year 2008
17,561,846/
15,458,590/
94,141,919*100 81,367,002*100
= 18.65%
= 18.99%
Year 2010
(Rs)
Year 2009
(Rs)
Year 2008
(Rs)
Share capital
Reserves
13,454,628
24,450,244
10,763,702
22,681,707
8,969,751
19,941,047
Un appropriated profit
Total
65,857,438
103,762,310
60,696,510
94,141,919
52,456,204
170,822,491
Ratio
Analysis
8. Debt
Ratio
Year 2009
Year 2008
906,528,852/
1,035,024,680*100
=87%
825,676,384/
944,582,762*100
=87%
715,299,108/
817,758,326*100
=87%
Ratio
Analysis
Year 2009
Year 2008
9. Debt / 906,528,852/
Equity
103,762,310
Ratio
= 8.73 times
825,676,384/
94,141,919
= 8.77 times
715,299,108/
81,367,002
= 8.79 times
Ratio
Analysis
10. Time
Interest
Earned
Ratio
69,665,595/
45,250,476
= 1.53 times
Year 2009
61,789,822/
40,489,649
= 1.52 times
Year 2008
46,885,766/
23,884,768
= 1.96 times
Working of EBIT
EBIT= Profit before Taxation+ Mark-up / return / interest
expensed
2010) EBIT = 24,415,119+45,250,476= 69,665,595
2009) EBIT = 21,300,173+40,489,649= 61,789,822
2008) EBIT = 23,000,998+23,884,768= 46,885,766
Ratio
Analysis
11.
Advances
/Deposits
Ratio
477,506,564/
832,151,888
= 0.5738 times
Year 2009
475,243,431/
727,464,825
= 0.6532 times
Year 2008
412,986,865/
624,939,016
= 0.6608 times
Ratio
Analysis
12.
OCF
Ratio
Year 2009
Year 2008
93,163,784/
867,626,368
= 0.107 times
41,576,364/
725,293,720
= 0.057 times
2,532,681/
682,905,461
= 0.003 times
Year 2010
(Rs)
Year 2009
(Rs)
Year 2008
(Rs)
8,006,631
10,621,169
10,219,061
17,154,131
816,172,861
37,057,189
655,031,896
37,409,288
614,538,859
Liabilities against
assets subject to finance
lease (short term)
43,963
20,408
16,517
26,248,782
22,563,058
20,721,736
Total
867,626,368
725,293,720 682,905,461
13. Div
Per
Share
8,072,777/
1,345,462.8
= Rs.6
Year 2009
5,830,338/
1,076,370.2
= Rs.5.41
Year 2008
6,115,739/
869,975.1
= Rs.6.81
Ratio
Analysis
14.
Earning
Per
Share
17,563,214/
1,345,463
= Rs. 13.05
Year 2009
17,561,846/
1,345,463
= Rs. 13.05
Year 2008
15,458,590/
1,076,370
= Rs. 14.36
Ratio
Analysis
15. Price
/Earning
Ratio
76.82/13.
05
= Rs.
5.88
74.37/13.0
5
= Rs. 5.69
50.32/14.3
6
= Rs. 3.50
Conclusion
The net profit margin of NBP in all of the years is good.
Gross spread ratio is also good in all of over the years.
Spread ratio of NBP is also good because it covers its interest
expenses.
Non Interest Income to Total Income Ratio of NBP is good.
Return on assets ratio of NBP is low.
Dupont return on assets ratio is also low.
Return on total equity ratio is good in all over the years.
Debt ratio of NBP is very high in all of the year that is not
good.
Conclusion
Debt ratio of NBP is very high in all of the year that is not
good.
Debt to equity ratio is also too high of NBP that is not god.
Time Interest earned ratio of NBP is good.
Advances / Deposits ratio is very low and not good for NBP.
Operating Cash Flow ratio is also very low in all over the
year that is not good.
Dividend per share ratio of NBP is good.
Earning per share ratio is very good.
P / E ratio is also good of NBP.
Recommendations
NBP can also increase the net profit margin ratio by
decreasing its non mark-up interest expenses and taxes.
NBP can increase more its gross spread ratio by decreasing
the interest expenses.
Return on assets ratio & Dupont return on assets ratio can
also be increased by utilizing the assets in an efficient
manner.
NBP need to decrease its debts to manage the debt ratio
because a high debt is not a good sign for NBP.
Recommendations
Debt to equity ratio is also very high. NBP should decrease
its debts because the equity investors will not invest in it
due to high debts.
NBP can increase its advances / deposits ratio by giving
advances to the customers.
NBP needs to improve its liquidity by increasing assets for
operating cash flow.
Thank You