Internship Report On

ALLIED BANK
Mandian Branch Abbotabad
QAMMAR ABBAS
BBA (HONS)
INSTITUTE OF MANAGEMENT STUDIES
UNIVERSITY OF PESHAWAR
SESSION 2006 2010
Internship Report On
ALLIED BANK
Mandian Branch Abbotabad
Internship Report submitted to the Institute of Management Studies,
Uniersit! of "esha#ar in partia$ fu$fi$$ment of the re%uirements for
the Degree of BA&'EL(R () BUSINESS ADMINIS*RA*I(N
December 2010
INSTITUTE OF MANAGEMENT STUDIES
UNIVERSITY OF PESHAWAR
Allied Bank Limited
List of contents PAGE NO
LIST OF TABLES
LIST OF CHARTS
LIST OF GRAPH
EXECUTIVE SUMMARY
INTRODUCTION TO THE REPORT 1-4
1.
1
BACKGROUND OF THE STUDY
1.
2
PURPOSE OF THE STUDY
1.
3
SCOPE OF THE STUDY
1.
4
METOHDOLOGY OF THE STUDY
1.4.1 Primary Daa
1.4.2 S!"#$%ary Daa
1.
&
SCHEME OF THE REPORT
1.&.1 S!"i#$ '
1.&.2 S!"i#$ ''
1.&.3 S!"i#$ '''
1.&.4 S!"i#$ '(
CHAPTER 2 &-1)
REVIE OF THE REPORT
2.
1
E*#+,i#$ #- .a$/i$0
2.
2
Hi1#ri"a+ .a"/0r#,$% #- A++i!% Ba$/
3
Allied Bank Limited
2.
3
Or0a$i2ai#$a+ Sr,",r!
2.
4
(i1i#$ A$% Mi11i#$
2.
&
O.3!"i*!
2.
)
C#r! (a+,!1
2.
4
C#r5#ra! Pr#-i+!
2.
6
Or0a$i2ai#$a+ Sr,",r! O- A++i!% Ba$/
Bra$"7
CHAPTER ! 14-38
FINANCIAL POSITION AND PRODUCT AND
SERVICES PROVIDED BY ALLIED BAN" AND
ITS BRANCH LOCATED IN MANDIAN
3.
1
B,1i$!11 O*!r*i!9
3.
2
O*!ra++ Fi$a$"ia+ P#1ii#$
3.
3
Balance Sheet Of The Bank
3.
4
Product and Services Offered By Allied Bank
CHAPTER # 31-)4
ANALYSIS
4.
1
C#mm#$ Si2! A$a+y1i1
4.1.1 Ba+a$"! 17!!
4.1.2 '$"#m! 1a!m!$
#$
2
Ho%i&ont'( An'()sis
4
Allied Bank Limited
4.2.1 Ba+a$"! 17!!
4.2.2 '$"#m! 1a!m!$
4.
3
Fi$a$"ia+ Rai# A$a+y1i1
#$!$*
#$!$*+*
Li,-i.it) %'tio
C-%%ent R'tio
+,-,. Acti/it) R'tio
4.3.2.1 Advance turn over ratio and Advance
Turn over Days
4.5.2.2 Total Assets turn over ratio
#$!$! Le/e%'0e R'tio
4.3.3.1 D!. # #a+ A11! rai#
4.3.3.2 D!.-E:,iy Rai#
4.3.3.3 E:,iy Rai#
4.3.3.4 E:,iy m,+i5+i!r
#$!$# P%ofit'1i(it) R'tio
#$!$2 P%ofit M'%0in R'tio
4.3.&.1. Gr#11 5r#-i mar0i$
4.3.&.2 N! 5r#-i mar0i$
4.3.&.3 O5!rai$0 mar0i$
#$!$3 Ret-%n R'tio
#$!$3$* %et-%n on 'ssets
#$!$3$2 %et-%n on E,-it)
#$
#
SOT An'()sis
4.4.1 Strenth
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Allied Bank Limited
4.4.2 !eaknesses
4.4.3 O55#r,$ii!1
4.4.4 T7r!a1
&'A"*ER /
)&-42
RE&(MMENDA*I(N
BIBLI(0RA"'1
ANNE2URE
)
Allied Bank Limited
L'ST OF TABLES
TABLE T'TLE PAGE NO
3.1
Ba+a$"! 17!! O- A++i!% Ba$/ 1;
3.2
Pr#-i 5+,1 A""#,$ 21
3.3
M#$7+y '$"#m! S"7!m! 22
4.1
C#mm#$ Si2! A$a+y1i1 O- Ba+a$"!
S7!!
33
4.2
"o##on Si$e Analysis of %nco#e
State#ent
3&
4.3
H#ri2#$a+ A$a+y1i1 O- Ba+a$"!
S7!!
3;
4.4
'ori$ontal Analysis Of %nco#e
State#ent
41
4.&
"urrent (atio Of AB) 43
4.)
Advance Turn over (atio And Advance
Turn over Days
45
4.4
T#a+ A11! T,r$ O*!r Rai# 44
4.6
D!. T# T#a+ A11! Rai# 46
4.;
D!.-E:,iy Rai# &8
4
Allied Bank Limited
4.18
E:,iy Rai# &1
4.11
E:,iy m,+i5+i!r #- ABL &2
4.12
Gr#11 Pr#-i Mar0i$ Rai# &4
4.13
N! 5r#-i mar0i$ #- ABL &&
4.14
O5!rai$0 Pr#-i mar0i$ Rai# &4
4.1&
R!,r$ #$ a11! #- ABL &6
4.1)
R!,r$ #$ !:,iy #- ABL )8
L'ST OF CHARTS
6
Allied Bank Limited
CHART
NO
T'TLE PAGE NO
2.1 Or0a$i2ai#$a+ "7ar #- ABL 18
2.2 Or0a$i2ai#$a+ "7ar #- ABL
Ma$%ia$ Bra$"7 A..#a.a%
13
L'STS OF GRAPHS
TABLE T'TLE PAGE NO
;
Allied Bank Limited
4.1
C#mm#$ 1i2! A$a+y1i1 #- .a+a$"!
17!!<a11!1=
34
4.2
C#mm#$ 1i2! A$a+y1i1 #- Ba+a$"!
S7!!<+ia.i+ii!1=
34
4.3
"o##on Si$e Analysis Of %nco#e 3*
4.4
C#mm#$ Si2! A$a+y1i1 O- E>5!$1!1
A$% PAT
34
4.&
'ori$ontal Analysis of Balance Sheet 4+
4.)
'ori$ontal Analysis Of %nco#e
State#ent
42
4.4
"urrent ratio 44
4.6
A%*a$"! T,r$ O*!r Rai# 4)
4.;
T#a+ A11! T,r$ O*!r rai# 44
4.18
D!. T# T#a+ A11! Rai# 4;
4.11
D!. ?E:,iy Rai# &8
4.12
E:,iy Rai# &1
4.13
E:,iy M,+i5+i!r Rai# &3
4.14
Gr#11 5r#-i mar0i$ #- ABL &4
4.1&
N! 5r#-i mar0i$ #- ABL &)
4.1)
O5!rai$0 mar0i$ #- ABL &4
4.14
R!,r$ #$ a11! #- ABL &;
4.16
R!,r$ #$ !:,iy #- ABL )8
18
Allied Bank Limited
ACKNOWLEDGEMENT
Thanks to Almighty Allah, The Creator, most Gracious and Merciful whom we never heard
Nay whenever I knocked at His door. He bestowed upon us with potential and ability to
sacred wealth of knowledge, which is permanent source of benefit for his humanity and
creature. I offer my humblest thanks from the deepest of our heart to the Holy Prophet
Hazrat Mohammad (Peace Be Upon Him) who is forever, torch of guidance for mankind.
My gratitude to my fellows who have helped shapes this report, which cannot adequately be
conveyed in a few sentences. However, I am indebted to a lot of former fellows and
contemporary colleagues who took the time and trouble during the last few days to speak to
me about the ways this text could be further improved.
Internship at Allied Bank was a very interesting, wonderful and knowledgeable experience as
we were not aware of the immense knowledge we had gained. I would like to thanks Mr.
11
Allied Bank Limited
Alam Zeb(Officer) and Mr. Mubashir Ahmad(CSM) for taking keen interest and helping us
from the core of his heart and guiding us all the time during our internship.
I am also very appreciative of the advice, suggestions and criticism of all the people related to
this task. They provided me with their support, their affection and their wish for me to be
firmly footed on earth and looking confidently for skies.
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Allied Bank Limited
E2E&*I3E SUMMAR1
The financial institution ,lay very i#,ortant role in the econo#ic ro-th
of the develo,in nation. Banks are very i#,ortant financial institution.
.o country can /e develo,ed -ithout /ankin0 as /anks ,lays the vital
role in the econo#y of a country. The econo#ic activities0 -hich #iht /e
in the for#s of i#,orts and e1,orts0 trade0 invest#ent in ariculture etc.
ensure econo#ic ,ros,erity throuh the efficient -orkin of the /ankin
syste#.
The ,ur,ose of the study is to analy$e and evaluate the o,eration0
functions of the Allied Bank )i#ited0 -here the internshi, -as carried
out. On the /asis of the analysis of the o,erations of the /ank and
o/servations #ade in different de,art#ent0 the reco##endations -ere
#ade. (eco##endations are iven for the i#,rove#ent the ,erfor#ance
and efficiency of the /ank.
Allied Bank is the first 2usli# /ank0 to have /een esta/lished on the
territory that /eca#e Pakistan0 esta/lished in Dece#/er 1342 as the
Australasia Bank at )ahore. AB) -as nationali$ed in 13*3 alon the
/anks of the co##unity.
4nder the current circu#stances0 Allied Bank effectively ,ursued its
stratey of consolidation and re#ained focused on the i#,rove#ent in
5uality of assets and achieve#ent of a #ore favora/le de,osit #i1. 'ere
in this cha,ter the detail discussion has #ade on the ,roduct and services
offers /y the /ank0 the orani$ation hierarchy0 a/out /oard of directors
and ,olicies and rules follo-ed /y the Allied Bank.
6inancial analysis is an evaluation of a fir#7s ,ast financial ,erfor#ance
and its ,ros,ects for the future. The #ain ,ur,ose of financial analysis is
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Allied Bank Limited
to ive a clear ,icture of the financial ,osition /y studyin the relationshi,
and co#,arisons /et-een the ite#s in the financial state#ent.
The co##on si$e analysis of /alance sheet indicates that the value of
current assets decline durin the current ,eriod 2++*0 2++8 and 2++3. The
lendin to financial institution is ho-ever0 sho-s the #odest increase.
The co##on si$e analysis of the inco#e state#ent indicates that the #ark
u, or interest earned durin 2++3 is 8*.39 -hich is reater as co#,are to
84.49 in 2++*. The hori$ontal analysis of the /alance sheet for the year
2++*02++8 and 2++3 sho-ed that the total assets of the /ank re#ains 5uite
sta/le durin /oth trends. The hori$ontal analysis of inco#e state#ent
indicates that the /ank has sho-n a ra,id increases in all se#ents durin
2++3. "urrent ratio for year 2++* is 1.+* indicates that co#,any has 1.+*
in current assets to cover (S.1.++ in "urrent lia/ilities as co#,are to 2++8
and 2++*. The advance turn over ratio sho-s an u,-ard trend0 -hich
sho- that the credit de,art#ent of the fir# is efficient in collectin
advances. The a/ove ta/le sho-s that al#ost 339 of AB) assets are
financed /y de/t. %n other -ords0 the clai# of share holders over the /ank
assets is /elo- *9. The result of all these ratios sho-s the stron ,osition
of the /ank in the year 2++30 so it is concluded that ,rofita/ility of the
fir# is i#,rovin and /ank is efficient and at sta/le ,osition.
At the last cha,ter the fe- reco##endations have iven. The /ank should
i#,rove its custo#er services0 #anae#ent inside orani$ation0 financin
facilities in ,rovidin loans0 analy$in financial state#ents and
#otivatin the e#,loyees.


14
Allied Bank Limited
&'A"*ER 4
IN*R(DU&*I(N *( *'E RE"(R*
The student of BBA :'O.S; 4niversity of Pesha-ar0 studyin courses leadin to
Bachelors Deree in Business ad#inistration are re5uired to undero an
internshi, ,rora# of t-o #onths in any -ell<re,uted orani$ation. This is an
essential acade#ic re5uire#ent. %t not only su,,orts the theoretical kno-lede /ut
also e1,oses the students to ,ractical e1,eriences of the concerned field.
"o#,rehensive re,ort -ritin follo-s the internshi,. The re,ort enco#,asses the
e1,eriences of the internee0 analy$in the# and #akin reco##endation for the
i#,rove#ent of the orani$ation.
This re,ort -ould discuss ,ros and cons of the Allied Bank )i#ited :AB);
2andian Branch A//otta/ad.
4,4 BA&K0R(UND () *'E S*UD1
The financial institution ,lay very i#,ortant role in the econo#ic ro-th of the
develo,in nation. Banks are very i#,ortant financial institution. .o country can
/e develo,ed -ithout /ankin0 as /anks ,lays the vital role in the econo#y of a
country. The econo#ic activities0 -hich #iht /e in the for#s of i#,orts and
e1,orts0 trade0 invest#ent in ariculture etc. ensure econo#ic ,ros,erity throuh
the efficient -orkin of the /ankin syste#.
.o-adays in the /ankin sector there is intense co#,etition. The /anks no- use
so,histicated technoloy to satisfy their custo#er and to attract the ,otential
custo#er /y ivin incentives and introducin ne- ,roducts and 5uality services.
2oreover /anks are very #uch ac5uainted -ith day to day challenes due to this
1&
Allied Bank Limited
co#,etition and re#ain continuously enaed stay ahead of their "o#,etitors.
The overn#ent has also introduced nu#/er of refor#s in the /ankin sector.
4,. "UR"(SE () *'E S*UD1
This re,ort is /ased on a study carried out for the fulfill#ent of the deree
re5uire#ent of the Bachelors in Business Ad#inistration at the %nstitute of
2anae#ent Study 4niversity of Pesha-ar.
The ,ur,ose of the study is to analy$e and evaluate the o,eration0
functions of the Allied Bank )i#ited0 -here the internshi, -as carried
out. On the /asis of the analysis of the o,erations of the /ank and
o/servations #ade in different de,art#ent0 the reco##endations -ere
#ade. (eco##endations are iven for the i#,rove#ent the ,erfor#ance
and efficiency of the /ank.
The study also ,rovides the ,latfor# to do ,ractical -ork in the field and
a,,ly the ,ersonal kno-lede and understand the o,erations of the /ank.
%t also ,rovides the o,,ortunity to i#,rove our ,ersonal skills and -ritin
skills.
4,- S&("E () *'E S*UD1
The sco,e of the study is confined to the Allied Bank 2andain /ranch
A//otta/ad. The different de,art#ents of /ranch -ere studied and o/served. The
study resolves around the o,erations carried out at Allied Bank )i#ited 2andian
Branch A//otta/ad. The financial analysis of the /ank -as also carried out.
4,+ ME*'(D(L(01 () *'E S*UD1
The #ethodoloy of the re,ort for collection of data is ,ri#ary as -ell as
secondary. The /iest source of infor#ation is #y ,ersonal o/servation -hile
-orkin -ith staff and havin discussions -ith the#. 6or#ally arraned
intervie-s and discussions also hel,ed #e in this reard.
1)
Allied Bank Limited
4,+,4 "rimar! Data
The sources for ,ri#ary data collection are as follo-s0
Personal o/servation
%ntervie-s of staff
Discussion -ith officers.
4,+,. Secondar! Data
The sources for secondary data are as follo-
2anuals.
=ournals.
%nternshi, re,ort
!e/sites
.e-s,a,ers
Annual re,orts
4,/ S&'EME () *'E RE"(R*5
This re,ort has /een divided into four sections0 -hich are in the follo-in order>
4,/,4 Section I
Section % consists of cha,ter that includes the /ackround of the study0 ,ur,ose0
sco,e0 #ethodoloy0 and sche#e of the re,ort.
4,/,. Section II
This section of the re,ort includes an overall vie- of Allied Bank )i#ited :AB);.
This section includes the /ankin revie-0 develo,#ent of /ankin in Pakistan0
history of Allied /ank0 the #ission state#ent0 o/?ectives and values of the AB).
14
Allied Bank Limited
Orani$ational structure of the AB) and the various de,art#ents of AB)
2andian Branch A//otta/ad.
4,/,- Section III
This is analysis section of the re,ort. This section deals -ith financial analysis
and S!OT analysis of the AB). This is totally /ased on the infor#ation athered
fro# annual re,orts. The financial ,roress of the AB) is assessed in this section.
4,/,+ Section I3
%n this section0 reco##endations are iven kee,in in vie- the current situation
of the /ank. 6irst0 the ,ro/le#s0 -hich are faced /y the /ank0 are discussed0 and
then reco##endation have /een iven.
16
Allied Bank Limited
&'A"*ER .
RE3IE6 () *'E RE"(R*
.,4E3(LU*I(N () BANKIN0
There are various vie-s a/out the oriin of the -ord /ankin. This -ord is
derived fro# the -ords /ancus or /an5ue -hich #eans a /ench. Other authorities
state that the -ord @BankA is derived for# the Ber#an -ord @BackA -hich #eans
@=oint Stock fundA and later on due to Ber#an occu,ation of %taly0 this -ord -as
italianated into @Bank. Authors 5uote Ba/ylonians develo,ed /ankin syste# as
early as 2+++ B.". %t is evident that the te#,les of Ba/ylon -ere used as /anks
/ecause of the ,revalent res,ect and confidence in the clery. @Bankin in fact is
as ancient as hu#an society. Cvaluation of /anks can /e associated -ith three
classes of old ti#es0
2erchants
2oney )enders
Bold S#iths.
.,4,4 Merchants
%n ancient ti#es0 #erchants -ere considered to /e the #ost res,ecta/le and
-ealthy ,eo,le. They -ere considered as the #ost trusted ,ersons in financial
#atters and other dealins. These #erchants used to /orro- fro# ,eo,le in the
for# of de,osit and returned to de,ositor after so#e ti#e -ith so#e re-ard
kno-n as interest. These #erchants had #irated fro# )o#/ardy in %taly to
1;
Allied Bank Limited
Cnland0 -here they started the /usiness of lendin the #oney on interest. They
-ere financially very stron even the kin -ould ask the# for financial hel,.
These #erchants also hel,ed the forein trade0 /y issuin -ritten ,er#ission0
latter on develo,ed in the for# of DBank DraftD.
.,4,. Mone! Lenders
2oney )enders0 -ere those ,ersons -ho used to lend their o-n #oney in early
staes0 'o-ever0 in later stae -ith the e1,ansion of their /usiness0 they started
/orro-in fro# ,eo,le havin sur,lus #oney on interest and lendin to needy
,eo,le on hiher interest0 hence #akin their ,rofit /y this ,ractice0 T-o #a?or
functions of #odern /anks0 that is0 Dacce,tin de,ositsD and Dadvancin loanD is
the #odified for# of the activities of old #oney lenders.
.,4,- 0o$dsmith
)on ao0 -hen hu#an life -as not so secure0 savin of #oney and other
valua/le -as very risky0 for an individual. Bolds#ith0 /ecause of their ,rofession0
used to kee, stron iron safe for kee,in old0 #oney and other valua/les for
safety.
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Allied Bank Limited
'ence0 the ,eo,le started de,ositin their s,are #oney and valua/le -ith these
olds#ith for safety. Bolds#ith chared so#e a#ount for this ,ur,ose and
returns the #oney and other valua/le to their de,ositors -hen needed. They
started issuin recei,ts aainst the de,osits of the ,eo,le. 2oreover /anks
inherited their function of acce,tance of de,osits fro# the ,ractice of these
olds#iths. C1,erience sho-ed these olds#iths that lare su# of #oney is
al-ays lyin idle and not all the de,ositors co#e to dra- their de,osits or #oney
at the sa#e ti#e. They also noticed that they are re5uested for loan /y needy
,eo,le on ood re-ard and security. %t -as a ood idea to ive #oney on interest
-hich -as sur,lusE si#,ly they -ere allo-in the facility of DOverdraftD as
allo-ed /y fe-er /ankers. But to earn #ore ,rofit0 every /ank started issuin
overdraft facilities -ithout #aintainin ade5uate reserve for the re5uire#ent of
their de,ositors. This ina/ility of different /ankers resulted in the failure of #any
/anks.
.,4,+ "resent7da! ban8ing
Accordin to ro-th the ,resent<day /anker has three ancestors the #erchants the
old s#iths and #oneylender. %n short -e can define /ank as a financial
institution0 -hich deals -ith #oney and credit0 it acce,ts de,osits fro#
individuals fir# and co#,anies at a lo-er rate of interest and ives at hiher rate
of interest to those -ho need the#.
.,4,/ Ban8ing in "a8istan
Bankin started in Pakistan after the /old and e#erent decision of for#ulation of
SBP on =uly 3+0 1348. Thereafter this sector has -itnessed enor#ous ro-th. %n
13*4 /anks -ere nationali$ed0 in the ho,e that ne- era of ro-th could /e
achieved throuh it. 'o-ever the ,rocess is reverse since 13310 u, till no- 2"B0
AB)0 and 4B) and 'B) have /een ,rivati$ed.
21
Allied Bank Limited
.,. 'IS*(RI&AL BA&K0R(UND () ALLIED BANK
.,.,4 'istor!
Allied Bank is the first 2usli# /ank0 to have /een esta/lished on the territory that
/eca#e Pakistan. Csta/lished in Dece#/er 1342 as the Australasia Bank at
)ahore -ith a ,aid<u, share ca,ital of (s.+.12 #illion under the "hair#anshi, of
Fha-a?a Bashir Bu10 the Bank had attracted de,osits0 e5uivalent to (s.+.431
#illion in its first eihteen #onths of /usiness. Total assets then a#ounted to
(s.+.5*2 #illion. The Allied BankGs stories is one of dedication0 co##it#ent to
,rofessionalis#0 ada,tation to chanin environ#ental challenes resultin into
all round ro-th and sta/ility0 envied and as,ire
)ater in 13*30 Bovern#ent of Pakistan decided to nationali$e all /anks of the
country and in the ,rocessE three s#aller /anks na#ely Sarhad Bank0 )ahore
"o##ercial Bank and Pakistan Bank -ere #ered -ith a relatively /ier and
stroner Australasia Bank. A ?oint force -ith fresh $eal and enthusias# -as
e#ered0 na#ed as Allied Bank of Pakistan )i#ited. Bein a .ational Bank0
AB) ke,t #ovin for-ard steadily0 contri/utin to-ards econo#ic ro-th of
country. As ti#e ,assed0 our nation entered into the ,hase of denationali$ation
and ,rivati$ation. Durin 13310 the Bovern#ent of Pakistan decided to ,rivati$e
Allied Bank of Pakistan )i#ited. Pri#e 2inister 2ian 2uha##ad .a-a$ Sharif
durin his first rei#e handed over #anae#ent of the /ank to its o-n
e#,loyees0 as a uni5ue ,heno#enon in the country. Tradin of the shares of the
Bank -as co##enced on the follo-in dates.
%sla#a/ad Stock C1chane 8
th
Auust 2++5
)ahore Stock C1chane 1+
th
Auust 2++5
Farachi0 Stock C1chane 1*
th
Auust 2++5
.,.,. "resent status
22
Allied Bank Limited
Allied Bank is no- one of the larest /anks in Pakistan0 o,eratin throuh a
net-ork of *&& /ranches in over 3++ cities and to-ns offerin real<ti#e online
/ankin. The /ank has in ,lace the larest AT2 net-ork in the country -ith 5+2
AT2s in #ore than 145 cities and to-ns across Pakistan. The nu#/er of
e#,loyee of Allied Bank -as u, to 80325 in 2++8. At ,resent the e#,loyees are
ac5uirin 519 shares -here as the rest of 439 are held /y 6ederal Bovern#ent.
A,art fro# holdin 439 /ank7s shares0 the Bovern#ent has also re,resentation of
3 Directors in the total strenth of * #e#/er of Board of Directors of the /ank
-ho are fully and actively involved in the /ank7s affairs such as ,olicy #akin
and other financial #atters.
.,.,- &redit rating
Based on its financial ,erfor#ance and sinificant i#,rove#ent in areas of risk
#anae#ent and cor,orate overnance0 the Pakistan "redit (atin Aency
:PA"(A; #aintained the lon<ter# credit ratin of Allied Bank to AA :dou/le A;
and short<ter# ratin to A1H :A one ,lus;.
Also0 ="(<I%S "redit (atin "o#,any )i#ited had assined a cor,orate
overnance ratin of J"B(<87 to the /ank durin the last year0 -hich denotes
Jhih level of cor,orate overnance.
.,.,+ Auditors
2. Kousuf Adil Salee# L "o.
:"hartered Accountants;
FP2B Taseer 'adi L "o.
:"hartered Accountants;
.,.,/ Audit &ommittee
The Audit "o##ittee consists of one chair#an and three #e#/ers of the
co#,any
23
Allied Bank Limited
.,- (R0ANI9A*I(NAL S*RU&*URE
6iure 2.1
Source5 Annua$ Report .::;,
24
HIEF E!EUTIVE OFFIER (EO)"PRESIDENT
SENIOR E!EUTIVE VIE PRESIDENT (SEVP)
SUPPORTING STAFF
HAIRMAN
SENIOR VICE PRESIDENT 4SVP5
EXECUTIVE VICE PRESIDENT 4EVP5
ASSISTANT VICE PRESIDENT 4AVP5
OFFICERS GROUP 4OG*+ OG2+ OG!5
Allied Bank Limited
.,+ 3ISI(N AND MISSI(N
.,+,4 3ision
To /eco#e a dyna#ic and efficient /ank ,rovidin interated solutions in
order to /e the first choice /ank for the custo#ers.
2.42 Mission
To ,rovide value added services to our custo#ers.
To ,rovide hih tech innovative solutions to #eet custo#ers re5uire#ents.
To create sustaina/le value throuh ro-th0 efficiency and diversity for all
stakeholders.
To ,rovide a challenin -ork environ#ent and re-ard dedicated tea#
#e#/ers accordin to their a/ilities and ,erfor#ance.
To ,lay a ,roactive role in contri/utin to-ards the society.
.,/ (b<ectie
The #ain o/?ective of the /ank is to acce,t de,osits and ,rovide loans to its
custo#ers and also to /e #ore efficient in ,rovidin services. The /ank
#aintained its co##it#ent to #ost efficient and ,ersonali$ed services to its
custo#ers. Allied /ank ives advances to s#all0 #ediu# and /i industries0
co##ercial esta/lish#ent0 ariculture construction co#,anies and other needy
,ersons /eside all of these o/?ectives0 ,rofit is the ,ri#ary o/?ective of all
financial orani$ations0 and all different activities are ai#ed to-ards its
achieve#ent.
2&
Allied Bank Limited
.,= &ore 3a$ues
%nterity
C1cellence in service
'ih ,erfor#ance
%nnovation and ro-th
.,> &orporate profi$e
The Board of Directors of Allied Bank is ,rovidin strateic in,ut and uidance
to the #anae#ent throuh its various co##ittees -hich include Audit
"o##ittee0 Strateic Plannin and 2onitorin "o##ittee0 'u#an "a,ital
"o##ittee and e<Iision "o##ittee. The Board oversiht of the #anae#ent
ensures effective i#,le#entation of its ,olicy directives in line -ith its strateic
vision to ,ro#ote a risk culture in the /ank. The #anae#ent of the /ank
co#,rises of /ankers led /y "CO and is divided into different rou,s on
functional /asis.
.,>,4 Management &ommittees
At the #anae#ent level0 there are si1 #a?or co##ittees that are>
2anae#ent "o##ittee0
'u#an (esource "o##ittee0
(isk 2anae#ent "o##ittee0
Assets and )ia/ilities "o##ittee0
"o#,liance "o##ittee and
%T Steerin "o##ittee.
.,>,. Board of Directors
2)
Allied Bank Limited
The /oard of directors consists of one chair#an0 five .on C1ecutive Directors
includin t-o overn#ent no#inees0 one C1ecutive Director0 three %nde,endent
Directors and one "hief C1ecutive Officer.
.,>,- E?ecutie &ommittee
C1ecutive co##ittee consists of>
"hief C1ecutive
President
C1ecutive Iice President :CIP;
Senior Iice President :SIP;
Iice President :IP;
Assistant Iice President :AIP;
.,; (R0ANI9A*I(NAL S*RU&*URE () ALLIED
BANK, MANDIAN BRAN&'
6iure 2.2
.,;,4 Location
Allied Bank )i#ited0 2andian Branch is situated on the Bara to-er =innaha/ad
A//otta/ad. %ts /ranch code is +++4.
.,;,. Number of Emp$o!ees
There are ten e#,loyees in this /ranch includin
24
Allied Bank Limited
2uha##ad Arif :Branch 2anaer;
2u/asher Ah#ad :Branch O,erational 2anaer;
6aisal Bashir :"redit De,art#ent %nchare;
2uha##ad Arshad :Second Officers;
Meeshan Saeed0 Tahir An-ar and 6aida Me/ :TellersN "ashiers;
Sher 2uha##ad )ali and .ase# 'aider :Audit Officers;
2uha##ad A/id :Buard;.
.,;,- Assets and Liabi$ities Management &ommittee @AL&(A
To ,rovide a -ide array of invest#ent ,roducts0 Allied Bank launched its asset
#anae#ent co#,any0 AB) Asset 2anae#ent "o#,any )i#ited0 -ith a ,aid
u, ca,ital of (s.5++ #illion. The co#,any -as incor,orated in Octo/er 2++* and
also received its license for Asset 2anae#ent and 6inancial Advisory. The
co#,any launched its #utual fund in 2++8. AB) A2" e1,anded its ,roduct suite
/y launchin a stock fund in =une 2++3. The co#,any also has an inco#e fund0
launched in Se,te#/er 2++8. AB) A2" has sur,assed #any old ,layers in the
#arket /y ro-in its fund si$e to over (s.3 Billion in a relatively shorter
o,erational ,eriod.
The recent econo#ic trends suest the ,ossi/ility of a #odest recovery durin
2+1+. The #a?or i#,etus for ro-th is e1,ected to co#e fro# the services sector0
-hile )S2 has also lately sho-n sins of recovery.
The ,ositive i#,rove#ent in #acroecono#ic indicators0 #ainly inflation and
contraction in e1ternal i#/alances /odes -ell for the revival of econo#ic activity.
'o-ever0 risks to these i#,rove#ents re#ains as inflationary ,ressures have not
co#,letely a/ated0 the co##odity ,rices #ay s,ur aain to un#anaea/le levels
and forein inflo-s :for instance fro# 6oDP and other /ilateral arrane#ents;
26
Allied Bank Limited
#ay not #ateriali$e on ti#e. 2ean-hile0 the severe enery shortaes and the
sensitive security situation re#ain a #a?or threat to the ,otential out,ut of the
econo#y.
The risin fiscal sli,,aes0 deficit of 1.59 of BDP for O1<6K1+ as co#,ared to
1.19 in O1<6K+3 ,oses another challene. A si$ea/le ,ortion of it also relates to
increasin e1,enditure on defense and security.
The continuin ,ressure in the o,eration environ#ent suests that the challenes
for the /ankin sector -ould ,ersist in 2+1+. Kour Bank0 -hile re#ainin ,rudent
under the circu#stances -ould continue to e#,hasi$e on i#,rovin cost effective
de,osit #i10 /uildin risk -eihted assets /y ensurin 5uality and o,ti#i$in
costs to ,ursue the stratey of #aintainin steady ro-th.
.,;,+ Ris8 Management committee5
The #anae#ent re#ained co##itted to instill a stron risk culture and control
environ#ent across the Bank. A nu#/er of initiatives have /een taken durin the
year to strenthen the overall risk #anae#ent function.
Those enco#,ass develo,#ent of ,olicies and ,rocedural coverin various risk
areas includin #arket risk #anae#ent0 asset lia/ility #anae#ent0 and
o,erational risk #anae#ent. The de,loy#ent of a suite of risk #anae#ent
solutions fro# one of the leadin lo/al fir#s is in ,rocess. Biven the difficult
credit environ#ent0 #uch e#,hasis is /ein ,laced on u,radin the credit risk
assess#ent and #onitorin ,rocess.
The Bank is currently in the ,rocess of develo,in )oan Oriination Syste# for
cor,orate /ankin relationshi,s0 -hich -ould auto#ate the credit oriination and
a,,roval ,rocess -ith an e#/edded o/lior risk ratin enine. The Bank has
a,,ointed a consultant to assist in i#,le#entation of O,erational (isk
2;
Allied Bank Limited
6ra#e-ork. Iarious ,olicies and ,rocedures -ith res,ect to the fra#e-ork are
under a,,roval ,rocess.
.,;,/ 'uman Resource5
The Bank re#ained active in its efforts to attract the /est of the industry talent /y
offerin #arket /ased co#,ensation and develo, the skill set of e1istin
,ersonnel. As ,art of the stratey to #i1 youth -ith e1,erience0 and to i#,rove
the culture of the Bank0 the #anae#ent ado,ted the ,olicy of inductin fresh
2BAN2."o# fro# /usiness schools of re,ute as 2anae#ent Trainee Officers
:2TOs;.
The selection criterion is ,urely /ased on #eritocracy -ith e5ual o,,ortunity for
all. The candidates ,assin a -ritten test ,re,ared /y %nstitute of Bankers are
called for intervie-s. The selected youn #en and -o#en are trained and
inducted into various functions of the Bank.
Durin the last t-o years around 8++ 2TOs in t-o se,arate /atches have /een
hired0 -hile the hirin of another /atch of around 25+ 2TOs is in ,rocess.
The 2anae#ent Develo,#ent "enters :2D"s; have /een set u,0 and various
trainin courses have /een arraned in these 2D"s -here around 50+++
e#,loyees ,artici,ated in these courses as ,art of career ,lannin and
develo,#ent ,olicy.
The Bank has also no#inated 101++ e#,loyees on various courses held -ithin
Pakistan and *& of e#,loyees -ere sent a/road to attend the courses and se#inars
durin 2++3. The Bank0 durin the year under revie-0 has incurred (s.5*.8
#illion on trainin of e#,loyees as co#,ared to (s.58.4#illion s,ent in the
,revious year.
To ,ro#ote e#,loyee enae#ent and satisfaction0 a ,erfor#ance evaluation
syste# is in ,lace -here/y J,ay to ,erfor#ance criteria7 inculcates the #otivation
a#onst the e#,loyees to achieve the oalsNtarets set for the#.
38
Allied Bank Limited
&'A"*ER -
)INAN&IAL "(SI*I(N AND "R(DU&*S B
SER3I&ES "R(3IDED B1 ALLIED BANK AND I*S
BRAN&' L(&A*ED IN MANDIAN,
-,4 BUSINESS (3ER3IE6
Allied Bank offers /ankin ,roducts and services -ith a focus on service delivery
throuh technoloy. The /usiness of the /ank is to satisfy custo#ers -ho seek
assistance and advice in #eetin their financial oals. %ts ,ri#ary e#,hasis is
eneral /ankin services0 na#ely de,osits0 loans0 ,ay#ent and collection. 6und
#anae#ent services0 #erchant /ankin and leasin0 credit for s#all and lare
enter,rises etc. are also /ein offered /y the /ank. %t has selectivity entered into
ne- areas that /roaden the rane of services0 loically e1tend the e1istin
strenths and #atch and sur,ass co#,etitor offerins. Pakistan is its ,rinci,al
#arket. A/road it has ,resence in the 4nited Findo#0 alon -ith a nu#/er of
re,resentative and corres,ondent /anks around the Blo/e. %t7s ra,idly seekin
e1,ansion in the 2iddle Cast and "entral Asia.
-,. (3ERALL )INAN&IAL "(SI*I(N5
31
Allied Bank Limited
Allied Bank has ,erfor#ed -ell des,ite various challenes faced /y the country on
do#estic front and led /y the lo/al recessionary trend. The /ankin sector faced a
dauntin task of #aintainin sta/le /alance sheet -hile ensurin to secure
,rofita/ility #arins for the shareholders. 4nder the current circu#stances0 Allied
Bank effectively ,ursued its stratey of consolidation and re#ained focused on the
i#,rove#ent in 5uality of assets and achieve#ent of a #ore favora/le de,osit #i1.
%n line -ith this stratey0 the Bank continued to alin its risk #anae#ent
fra#e-ork to effectively res,ond to chanin dyna#ics. 2ean-hile0 efforts to
enhance custo#ers7 satisfaction continued durin the year throuh strenthenin
delivery ca,a/ilities /y leverain technoloy ,latfor# and the Bank7s e1tensive
outreach and develo,in innovative ,roducts and solutions. Allied Bank7s Profit
Before Ta1 increased to (s.1+0 53& #illion durin 2++3 as co#,ared to (s.&0121
#illion in 2++80 a KoK increase of *2.19. Profit After Ta1 also rose to (s.*0122
#illion in 2++3 as aainst (s.4015* #illion in 2++80 sho-in an increase of *1.39.
"onse5uently0 the (OA and (OC of the Bank increased to 1.819 and 3+.59 as
co#,ared -ith 1.219 and 21.29 in ,revious year. The CPS of the Bank stands at
(s.1+.+2 for 2++3 co#,ared to (s.5.85 in ,revious year.
The /alance sheet si$e of Allied Bank increased to (s.41803*4 #illion as at
Dece#/er 310 2++30 a KoK rise of 14.19. The e5uity of the Bank increased /y 349
to (s.2303&+ #illion as at Dece#/er 310 2++3. "onse5uently0 the financial leverae
reduced to 13.3& ti#es as at Dece#/er 310 2++3 co#,ared to 1&.4+ as on Dece#/er
310 2++8. The Bank7s "A( at Dece#/er 310 2++3 -as -orked out to at 13.4* 90
i#,rovin fro# ,revious year7s 1+.3+9. This sho-s Bank7s focus on /alance sheet
strenthenin -hile also ensurin reulatory co#,liance. De,osits re- /y 1+.&9
to (s.3280 8*5 #illion as at Dece#/er 310 2++3 co#,ared to (s.23*0 4*5 as at
Dece#/er 310 2++8. Bross advances increased to (s.2430 88* #illion at Dece#/er
310 2++3 co#,ared to (s.2230 &4+ #illion at Dece#/er 310 2++80 a KoK rise of
11.*49. .et 2ark<u,N%nterest %nco#e of the Bank increased /y 4+.&9 to (s.180*++
#illion as co#,ared to (s.130 238 #illion in the ,revious year. .on<2ark u,
inco#e rose to (s.50 358 #illion sho-in a KoK increase of 21.*9. The Bank7s
o,eratin e1,enses increased /y 13.39 to (s.30 &+3 #illion durin 2++3. The Bross
32
Allied Bank Limited
%nco#e to C1,ense ratio has i#,roved to 2.5* ti#es durin 2++3 fro# 2.+4 ti#es in
2++8.
33
Allied Bank Limited
-,- BALAN&E S'EE* () *'E BANK
*ab$e -,4
Assets *ota$ @Rs,:::A
(perating Assets 4 .=,+-/,=--
Inestments C+,>;C,+C.
(ther Assets 4>,C//,:+/
Liabi$ities
&urrent $iabi$ities +.,C;:,C=4
Deposits and
others account
-.;,;>/,:->
Subordinates $oan /,+C>,:::
(ther Liabi$ities 44,:/C,+;+
E%uit! >4,4:,::;
34
Allied Bank Limited
-,+ "R(DU&*S AND SER3I&ES ())ERED B1
ALLIED BANK
The ,roducts and services offered /y Allied /ank are as fallo-s>
-,+,4 "roducts5
Allied /ank offers a -ide rane of ,roducts. They have skillfully crafted their
,roducts to use the# as their core co#,etencies and also as their tools for
co#,etitive stratey.
The follo-in ,roducts are availa/le for custo#ers>
(u,ees De,osit Accounts
6orein "urrency Accounts
Allied "ashH "ard
Online Bankin
%nternet Bankin
2aster "ard
)endin Products
%#,ort C1,ort BusinessNTrade 6inance
(unnin 6inance
De#and 6inance
3.4.1.1 Rupees Deposit Account
The follo-in accounts are the ,arts of ru,ee de,osits accounts>
3&
Allied Bank Limited
"urrent Account
Savin Account
Allied Profit Plus P De,osit Account
Allied 2onthly %nco#e Sche#e
3.4.1.1.1 Current Account
Allied Bank offers "urrent Account facility for individuals as -ell as for
institutions and co##ercial custo#ers. There are free services for the de,ositors
-ho #aintain #ini#u# /alance of (s.+.1 :2; in ,revious #onth. %t offers
different /enefits to its custo#ers like>
6ree Online Transactions
6ree issuance of Pay#ent Orders
6ree %ssuance of De,osit at "all (ecei,ts
3.4.1.1.2 PLS Account
Allied Bank offers P)S Savins Account facility to its custo#ers -ith the
attractive features like attractive return u, to 5.++9 ,er annu#0 no service chares
on active accounts0 co#,le#entary AT2 cards and for de,ositors #aintainin a
#ini#u# /alance of (s. +.5 :2; in the ,revious #onth.
3.4.1.1.3 PPA (profit plus account)
Allied Profit PlusPDe,osit Account is a ,rofit /earin checkin account -ith the
,ay#ent of ,rofit on a #onthly /asis. The esti#ated rate of ,rofit is iven /elo->
*ab$e -,.
Rs,/@MA to $ess than Rs,4: @MA =,/:D
3)
Allied Bank Limited
Rs,4:@MA to $ess than Rs,./
@MA
>,/:D
Rs,./@MA B aboe ;,::D
Source5 &ircu$ar N( ,"EINS*7.:::E=C, March /, .::C, issued b! ban8.
The a,,lica/le ,rofit rate -ould /e /ased on a#ounts #aintained on
averae #onthly /asis and the ,rofit credited in the account on #onthly
/asis.
There is no restriction for #aintenance of any #ini#u# /alance in the
account.
-,+,4,4,+ Month$! Income Scheme
%t is a uni5ue ,roduct -ith attractive returns. %t ,rovides an o,,ortunity for a
reular #onthly inco#e. The ,eriod of de,osit under this sche#e is 3 years. The
schedule of inco#e sche#e is as follo-s>
*ab$e -,-
Minimum Amount Rs,4::, :::,
"rofit "a!ab$e on month$! basis,
"ro<ected profit rates Rs,;/:Emonth on deposit of
Rs,4::, :::7 F 4:,.:D
Eannum,
E$igibi$it! A$$ indiidua$s B institutions
other than )inancia$
Institutions,
"eriod - !ears,
Source5 &ircu$ar N( ,"EINS*7.:::E=C, March /, .::C, issued b! ban8,
The Sche#e ,rovides the follo-in s,ecial /enefits.
"o#,le#entary AT2 card for de,ositor and s,ouse.
34
Allied Bank Limited
Profit to /e credited in the de,ositor7s P)S savin AN" and can /e
-ithdra-n throuh AT2 free of chare.
"o#,le#entary credit card -ith a,,roved credit li#it.
6ree transfer of #onthly ,rofit to any /ranch of AB) all over the Pakistan.
)oan facility aainst de,osit.
-,+,4,. )oreign &urrenc! Accounts
Allied Bank offers the hihest rate of return on 6orein "urrency De,osits in the
"ountry. Accounts can /e o,ened in 4S Dollar0 Pound Sterlin0 Curo0 and
=a,anese Ken at desinated /ranches. All Pakistani nationals residin in Pakistan
and outside Pakistan can also o,en 6orein "urrency Accounts. (esident 6ir#s0
"o#,anies includin %nvest#ent Banks can o,en Accounts.
-,+,4,- A$$ied &ashG &ARD
Allied Bank AT2 "ard also referred to as DA$$ied &ashGD0 can also /e used as a
de/it card at #erchant locationsNservice.
-,+,4,+ (n$ine Ban8ing
Online Bankin facilities are availa/le to custo#ers #aintainin accounts at all
online /ranches across the country. The follo-in facilities are availa/le>
"ash De,osit for i##ediate credit to re#ote /ranch.
(e#ote "he5ue Cncash#ent fro# any online /ranch.
%nstant 6unds Transfer /et-een any 2 online /ranches.
Kou can use your card for loan account ,ay#ents
"heck transaction history of your accounts
Bet your account state#ent throuh fa1
36
Allied Bank Limited
(eceive infor#ation on various Allied /ank ,roducts and services
6ind out status of your card or loan a,,lication
(e5uest /alance or reference certificate
Bet currency e1chane rates
%ssue sto, ,ay#ent instructions
(e,ort loss of your che5ue /ook
Balance Cn5uiry and Account State#ent at re#ote /ranches.
Account<to<account 6unds Transfer facility is also availa/le for instant
re#ittance.
3.4.1.5 Internet Ban8ing
Allied Direct %nternet Bankin offers the convenience to #anae and control
/ankin and finances. To use Allied Direct %nternet Bankin0 one should /e a
reistered Allied Bank Account holder -ith a valid AT2 "ard. %f so#e one does
not have an account0 he #ay visit any of the nearest /ranch and o,en his account
and o/tain an AT2 "ard. The Allied Direct is si#,le0 convenient0 secure0 faster
an all the ti#e accessi/le.
-,+,4,= Master &ard
Allied Bank under license fro# 2aster "ard %nternational0 4.S.A issues its
2aster "ard to anyone #eetin the elii/ility criteria. !ith the Allied Bank <
2aster "ard the consu#ers -ill /e assured of a service #eetin the hihest
international standards #aintained /y 2aster "ard. "ardholders are iven the
o,,ortunity to take ,leasure in areas like sho,,in in their favorite store0 dinin in
the finest restaurants or takin that drea# vacation. Si#,ly ,uttin it0 the Allied
Bank 2aster"ard #akes everythin in life /eco#e #ore valua/le.
3;
Allied Bank Limited
-,+,4,> *rade )inance
Allied Bank ,rovides hihly efficient trade finance services for i#,ortNe1,ort
/usiness to his clients throuh lare nu#/er of authori$ed /ranches -here trained
and #otivated staff is availa/le to handle the /usiness on /ehalf of custo#er.
-,+,4,; Running )inance
%t is a short ter# loan allo-ed /y the /ank for a ,eriod of one year. The runnin
finance account can /e o,erated and daily sale ,roceeds can /e de,osited into the
account. The #ark<u, is recovered on the ,roducts of daily outstandin /alance.
The runnin finance is suita/le for #eetin day to day financial needs of the
/usiness.
-,+,4,C Demand )inance
%t is dis/ursed in lu#, su# or in accordance -ith the areed
dis/urse#ent schedule and it is re,aya/le as ,er the areed
install#ents0 -hich could /e #onthly0 5uarterly0 /iannual or annual.
-,+,. Serices5
Services are the #ain tool throuh -hich the /ank ac5uires ne- custo#ers and
retain the#. These services are not #erely #eant to earn ,rofit0 /ut also to kee,
,ace -ith the chanin needs of the custo#ers and #odern day7s /ankin trends.
Allied Bank offers the follo-in services to its custo#ers>
'o#e (e#ittances
(e#ittances
'a?? Services
)ockers
"o##odity O,eration
48
Allied Bank Limited
Bank insurance
De,osit related services
Trust /ankin services
6und transfer and ,ay#ent services
)oans and other credit facilities
2erchant /ankin services
2icro finance
Treasury services
"usto#er Service "enter
6orein C1chane
6orein "urrency Accounts
Discountin /ills of e1chane
Aency services to custo#ers
Beneral utility services
.et-ork of AT2
1<)ink .et-ork
Bankin %nstru#ents Availa/ility
3.4.2.1 Remittances
The /ank transfers a lare ,ro,ortion of #oney fro# one ,lace to another or fro#
,erson to ,erson. The de,art#ent0 -hich deals -ith transfer of #oney0 is called
41
Allied Bank Limited
(e#ittance De,art#ent. Transfer of #oney takes ,lace throuh the follo-in
/ills of e1chane.
2ail Transfer :2T;
Telera,hic Transfer :TT;
De#and Draft :DD;
-,+,.,. 'a<< )aci$ities
The Bank serves the intendin ,ilri#s /y hel,in the# in ,erfor#in this
reliious o/liation. The /ank ,rovides the for#s and other related services.
'o-ever0 the ter#s and conditions for acce,tin the 'a?? for#s fro# intendin
,ilri#s are in accordance -ith the 'a?? Policy announced /y the overn#ent0
each year. 'a?? a,,lications are availa/le -ith all /ranches durin 'a?? season0
i##ediately after the Bovern#ent of Pakistan announces the 'a?? ,olicy.
3.4.2.3 Loc8ers
2any /anks ,rovide the facility of lockers /ut not in their all /ranches /ut Allied
/ank is the only /ank that ,rovides the lockers facility to their custo#ers at their
all /ranches. Allied Bank )ockers are availa/le in three different si$es i<e S#all0
2ediu# and )are on a yearly fee. )ocker holders need not have an account in
the Bank.
3.4.2.4 Ban8 insurance
Bank ,rovides insurance of ho#es0 #otor vehicles and assets throuh the Allied
/ankers %nsurance "or,.
3.4.2.5 Deposit re$ated serices
42
Allied Bank Limited
Allied Bank ,rovides -ith other services that add value and ease in the /ankin
needs anyti#e0 any-here and anyho-.
-,+,.,= *rust ban8ing serices
Allied Bank offers 6iduciary services such as )ivin Trust0 Pro,erty
Ad#inistration0 Accu#ulation Trust0 Cstate Plannin0 (etire#ent Plans as -ell as
,ooled and individuali$ed invest#ent services.
-,+,.,> )und transfer pa!ment and co$$ection serices
Allied Bank offers fast0 relia/le and safe #eans of sendin #oney to the
/eneficiaries. %ts -orld-ide net-ork of tie<u,s and corres,ondent /anks can assist
the needs of custo#ers.
-,+,.,; Loans and other credit serices
The /orro-ers can en?oy the /est rates in the #arket and e1,erience efficient
handlin /y the /est loan officers of the Allied Bank.
3.4.2.9 Merchant ban8ing serices
Allied Bank under-rites securities and /onds0 -hich are nor#ally ,erfor#ed /y
an invest#ent house and is actively enaed as custodian of S,ecial 6inancin
Prora#s. 6inancial advisory services are availa/le for clients -ho ,lan to
venture into ,ro?ect develo,#ent and financin.
3.4.2.1 Micro finance
!ith the Bank7s ne-est lendin service0 the @2icro<6inance !holesale
)endin0A /ank can address the fundin needs of rural /anks0 .BOs and
coo,eratives for their #icro<finance retail lendin activities.
3.4.2.11 *reasur! serices
43
Allied Bank Limited
The /ank treasures the invest#ents of its custo#ers and #akes their #oney -ork
for the#.
-,+,.,4. &ustomer Serice &enter
Bank has custo#er care center for its custo#ers. They have toll free nu#/ers on
-hich custo#ers can dial and they have not to ,ay any thin for it. This center
also ,rovides the facility to the custo#ers on s,ot and hel,s the# -hatever the
#atter is.
-,+,.,4- )oreign E?change
Allied /ank ,rovides the facility of forein e1chane to its custo#er. The
custo#ers #ay also o,en their accounts in forein currency. The /ank ,rovides
the facility of letter of credit and other e1,ortNi#,ort facilities to its custo#ers.
The custo#ers #ay et the facility of #oney e1chane on the current rates. To et
the latest rates0 the head office ,rovides the# -ith the fa1 facility of daily rates of
forein currency.
-,+,.,4+ )oreign &urrenc! Accounts
Allied /ank deals in follo-in forein currencies>
4S Dollars
Breat Britain Pound
Curo
=a,anese Ken
-,+,.,4/Discounting bi$$ of e?change
The /ank utili$es its sur,lus funds in another i#,ortant -ay. They discount the
/ills of e1chane at their #arket -orth0 i.e.0 the ,ay to the holders of the /ill an
a#ount e5ual to their face value after deductin interest at the current #arket rate
44
Allied Bank Limited
for the ,eriod the /ill has to #ature. The /ills of e1chane are a very li5uid asset
for a /ank to hold. These /ills are usually dra-n for three #onths and are used for
financin internal as -ell as e1ternal trade.
3.4.2.1! Agenc! serices to customers
6ollo-in are the aency services to AB).
"ollection of check
"ollection of dividends
Purchase and sale of securities
Transfer of funds
Acts as an aent
3.4.2.1" 0enera$ uti$it! serices
AB) also ,erfor#s a nu#/er of other eneral utility services to his clients like>
Acts as a referee
Acce,tance of /ills of e1chane
"ollection of utility /ills
-,+,.,4; Net#or8 of A*M
The nu#/er of AT2s of Allied Bank has increased to 5+2. %t is the /ank -ith
hihest nu#/er of AT2s. This achieve#ent is enhanced -ith an e1tended reach
coverin 145H cities there/y #akin it the -idest eora,hical net-ork for AT2
/ased services a#onst all the /anks in Pakistan.
4&
Allied Bank Limited
&'A"*ER +
)INAN&IAL ANAL1SIS
6inancial analysis refers to an assess#ent of the via/ility0 sta/ility and
,rofita/ility of a /usiness. 6inancial analysis is an evaluation of a fir#7s ,ast
financial ,erfor#ance and its ,ros,ects for the future. The #ain ,ur,ose of
4)
Allied Bank Limited
financial analysis is to ive a clear ,icture of the financial ,osition /y studyin the
relationshi, and co#,arisons /et-een the ite#s in the financial state#ent.
6inancial state#ents re,ort /oth on a fir#s ,osition at a ,oint in ti#e and on its
o,erations over so#e ,ast ,eriod. 'o-ever0 the real values of financial state#ents
lie in the fact that they can /e used to ,redict future earnin0 dividends and cash
flo-s. 6ro# investor7s ,oint of vie-0 ,redictin the future is -hat financial
state#ent analysis is all a/out0 -hile fro# #anae#ent stand ,oint0 financial
state#ent analysis is useful /oth to hel, antici,ate future conditions and #ore
i#,ortant0 as a startin ,oint for ,lannin actions that -ill i#,rove the fir#7s
future ,erfor#ance.
The various stakeholders of /usiness are interested in the analysis of financial
state#ent. But the focus of interest of all is not the sa#e. 6or e1a#,le0 creditors
and credit re,ortin aencies are interested in findin out the credit -orthiness of
the fir# to -hich they have e1tended credit or intend to e1tend credit. Short ter#
creditors are interested in the short ter# li5uidity of the /usiness and lon run
creditors are interested in lon run cash flo- -hich the fir# can enerate over the
lon ,eriod of ti#e. %nvestors are interested in the fir#7s a/ility to sustain
,rofita/ility over a ,eriod of ti#e. Bovern#ent aencies analy$e financial data for
ta1 ,ur,oses. The internal users of financial state#ent like #anae#ent like
,lannin and control.
%t consists of a,,lyin analytical tools and financial ratios to o/tain useful
infor#ation. 6inancial ratios are desined to hel, evaluate financial state#ents.
The interested ,arties need to inter,ret this infor#ation a/out ,erfor#ance of the
co#,any throuh the use of financial ratios and tools. Fee,in in vie- its
i#,ortance the financial analysis are #ade /y usin the Balance Sheet and
%nco#e State#ent of the /ank for the years 2++*0 2++8 and 2++3 and than
calculated the ratios to find out the financial health of the /ank and also have done
the co##on si$e analysis of the /alance sheet and the inco#e state#ent.
+,4 &(MM(N SI9E ANAL1SISH
44
Allied Bank Limited
"o##on si$e analysis is an analysis of financial state#ents -here all /alance
sheet ite#s are divided /y total assets and all inco#e state#ent ite#s are divided
/y net sales or revenues. "o##on si$e analysis can /e e1tre#ely hel,ful to
hihliht chanes. But the co##on si$e analysis don7t sho- the chane in
a#ount of a ,articular /alance sheet ite# and inco#e state#ent ite#0 it only sho-
chanes relative to asset orQand net
.
+,4,4&ommon siIe ana$!sis of ba$ance sheet5
The follo-in ta/le sho-s the co##on si$e analysis of /alance sheet of AB) for
year 2++*0 2++8 and 2++3
46
Allied Bank Limited
*ab$e +,4 common siIe ana$!sis of Ba$ance sheet
Rupees in @:::A common siIe @DA
Assets
.::> .::; .::C .::> .::; .::C
&ash and
ba$ances #ith
treasur!
ban8s
3+4+8 25*51 2**1& 3.59 *.+9 &.&9
Lending the
financia$
institution
18413 15*33 28123 5.89 4.39 &.*5
Inestment 84151 84&+2 3&3*5 2&.29 22.49 22.*9
Adances 1*8524 223&4+ 24388* 52.&9 58.19 5&.*9
(perating
)i?ed Assets *543 11134 1244* 2.49 3.+9 3.+9
(thers Assets
113&8 18333 1*355 3.59 5.+9 4.39
*ota$ assets -.:44: -===C= +4;->+ 4::,:D 4::,:D 4::,:D
Liabi$ities
&ustomer
deposits 2&33*2 23*4*5 3288*5 82.39 81.19 *8.&9
Inter ban8
borro#ings 22334 2***8 33813 *.29 *.&9 3.59
Bi$$s pa!ab$e
3434 2352 31&2 1.19 +.89 +.89
(ther
$iabi$ities *332 13&3& 11+&1 2.39 3.*9 2.&9
sub7 ordinate
$oans 2433 2438 543* +.89 +.*9 1.39
*ota$
$iabi$ities -::.-4 -++-+: -;;+4+ C-,>D C-,CD C.,;D
E%uities
Share capita$ 538& &4&4 *11+ 1.*9 1.89 1.*9
Reseres 2&32 34&3 4888 1.39 1.&9 1.&9
Un7
appropriate
profitJ $oss
&3*1 853* 12138 2.29 2.39 2.39
E%uit!7tier 4 184+8 2+8+5 25831 5.89 5.*9 &.29
Surp$us on
rea$uation of
assets 14*+ 155+ 4+&3 +.59 +.49 1.+9
*ota$ e%uit! 4C;>; ..-/= .CC=: =,-D =,4D >,.D
4;
Allied Bank Limited
Source5 Annua$ report of ABL .::C
Bra,h 4.1 sho-in total assets of AB) in year 2++3
Bra,h 4.2 sho-in the lia/ilities and shareholders e5uity of AB) in 2++3
+,4,4,4 Interpretation5
The co##on si$e analysis of /alance sheet indicates that the value of current
assets decline durin the current ,eriod 2++*0 2++8 and 2++3. The lendin to
financial institution is ho-ever0 sho-s the #odest increase i<e &.*59 in 2++3
fro# 4.39 of 2++8. The invest#ent declines to 22.*9 in 2++3 as co#,are to 2&9
&8
Allied Bank Limited
of 2++*. The decline trend is also o/served in the case of advances in 2++8 the
advances are 58.19 -hich decreases to 5&.*9 in 2++3.
"usto#er7s de,osit durin the ,eriod under the analysis has also sho-n a
declinin trend and constitutes only *89 of total Assets in 2++3. "onsiderin the
lia/ilities and e5uities ,ortion of the Balance sheet0 the de/t of the co#,any has
sho-n the constant trend over a s,an of three years. The lia/ility of the /ank in
2++* is 33.*90 in 2++8 is 33.359 and in 2++3 it is 32.890 there sho-s a sliht
difference0 -hile the e5uities of the fir# is &.39 in 2++*0 &.19 in 2++8 and *.29
in 2++3. The shareholder7s e5uity of the fir# has ho-ever0 sho-n an increasin
trend and -ent u, to 2.3 /illion in 2++3 as co#,are to 2.2 /illion in 2++*. %n 2++3
*.29 of net assets is re,resented /y share holders e5uity.
+,4,. &ommon siIe ana$!sis of income statement5
The follo-in ta/le sho-s the co##on si$e analysis of inco#e state#ent of AB)
for the year 2++*0 2++8 and 2++3
&1
Allied Bank Limited
Ta/le 4.2 "o##on si$e analysis of inco#e state#ent>
Rupees in @:::A common siIe @DA
.::> .::; .::C .::> .::; .::C
InterestJreturnJ non interest earned
2ark<
u,QreturnQinterest
earned 21.2+1 3+.5*1 41122 84.49 8&.29 8*.39
6ee0 co##ission
or /rokerae and
e1chane
inco#e 2258 32&& 34*+ 3.+9 3.29 *.49
"a,ital ain and
dividend inco#e 1585 15*1 2452 &.39 4.49 5.29
Other inco#e ** 53 3& +.39 +029 +.19
*ota$ -C.: +;C> /C/; 4::,:D 4::,:D 4::,:D
InterestJreturnJ non interest e?pense
2ark<
u,QreturnQnon
interest e1,ense 1++33 1*2*3 22422 4+.29 48.*9 4*.&9
O,eratin
e1,enses &1*4 8431 3&+3 24.*9 24.+9 2+.&9
Profit /efore
,rovision 8855 3*&4 15+43 11.49 1+.+9 3.49
Ta1ation :18**; :13&4; :3414; *.59 5.&9 *.39
*ota$ e?penses7
@DA of tota$
income /C/- =4.4 4:/-= ;;,;D ;;,-D ;+,CD
"rofitJ$oss after
ta?ation +:>= +4/> >4.. 4=,.D 44,>D 4/,4D
Source5 Annua$ report of ABL .::C
&2
Allied Bank Limited
Bra,h 4.3 sho-in the co##on si$e analysis of inco#e
Bra,h 4.4 sho-in the co##on si$e analysis of e1,enses and ,rofit after ta1
+,4,.,4 Interpretation>
The co##on si$e analysis of the inco#e state#ent indicates that the #ark u, or
interest earned durin 2++3 is 8*.39 -hich is reater as co#,are to 84.49 in
2++*. 'o-ever non<interest e1,ense of the inco#e also increased durin the
,eriod fro# 4+.29 of 2++* to 4*.&9 of 2++3. The o,eratin e1,enses of the fir#
&3
Allied Bank Limited
also decline sho-in the efficient #anae#ent of Allied Bank in controllin cost.
)ookin at the ta1ation values for the ,eriod under analysis a #i1 trend is
o/served0 ta1ation -as *.59 in 2++* -hich decline to 5.&9 in 2++8. 'o-ever0
the ta1ation increases to *.39 in 2++3.
Due to increase in #ark<u, or interest earned and decline in o,eratin e1,enses
and ta1ation the net ,rofit of the fir# durin 2++3 increase to 15.19 fro# 11.*9
of 2++3
+,. '(RI9(N*AL ANAL1SIS5
A ,rocedure is funda#ental analysis in -hich an analyst co#,ares ratio or line
ite#s in a co#,any7s financial state#ents over a certain ,eriod of ti#e. The
analyst -ill use his or her discretion -hen choosin a ,articular ti#e line.
'o-ever0 the decision is often /ased on the investin ti#e hori$on under
consideration.
6or e1a#,le0 -hen you hear so#e one says that revenue increased /y 1+9 in the
,ast 5uarter0 that ,erson is usin hori$ontal analysis. 'ori$ontal analysis can /e
used on any ite# in a co#,any7s financials :fro# revenue to earnin ,er share;0
and is useful -hen co#,arin the ,erfor#ance of various co#,anies.
+,.,4'oriIonta$ ana$!sis of ba$ance sheet5
The follo-in ta/le sho-s the hori$ontal analysis of the /alance sheet of 2++*0
2++8 and 2++3.
&4
Allied Bank Limited
Ta/le 4.3 sho-s the hori$ontal analysis of Balance sheet
Rupees in @:::A Dages
Assets .::> .::; .::C
'oriIonta$ ana$!sis
.::> s, .::; .::; s, .::C
"ash and
/alances -ith
treasury /anks 3+4+8 25*51 2**1&
<15.3+ *.&3
)endin the
financial
institution 18413 15*33 28123
<14.25 *8.+*
%nvest#ent 84151 84&+2 3&3*5
+.535 *8.34
Advances 1*8524 223&4+ 24388*
25.2* 11.*3
O,eratin
6i1ed Assets *543 11134 1244*
4*.48 11.*3
Others Assets 113&8 18333 1*355
&1.84 <2.41
*ota$ assets -.:44: -===C= +4;->+
4+,// 4+,:C
Liabi$ities
"usto#er
de,osits 2&33*2 23*4*5 3288*5
12.&3 1+.55
%nter /ank
/orro-ins 22334 2***8 33813
21.12 43.34
Bills ,aya/le 3434 2352 31&2
21.12 *.11
Other
lia/ilities
*332 13&3& 11+&1
85.3* <18.88
su/< ordinate
loans 2433 2438 543*
<+.+4+ 12+
*ota$
$iabi$ities -::.-4 -++-+: -;;+4+
4+,=C 4.,>C
E%uities
Share ca,ital 538& &4&4 *11+
2+.+1 3.33
(eserves 2&32 34&3 4888
31.5* 41.13
4n<
a,,ro,riate
,rofitQ loss &3*1 853* 12138
22.4& 42.88
E%uit!7tier 4 184+8 2+8+5 25831
13.+2 24.44
Sur,lus on
revaluation of
assets 14*+ 155+ 4+&3
5.44 1&2.5
*ota$ e%uit! 4C;>; ..-/= .CC=: 4.,+= -+,:4
Source5 annua$ report of A$$ied ban8 .::C
&&
Allied Bank Limited
Bra,h 4.5 sho-s the hori$ontal analysis of /alance sheet
+,.,4,4 Interpretation5
The hori$ontal analysis of the /alance sheet for the year 2++*02++8 and 2++3
sho-ed that the total assets of the /ank re#ains 5uite sta/le durin /oth trends i<e
fro# 2++* to 2++8 and 2++8 to 2++3.de,osits sho-ed a #odest ro-th rate of
1+.559.lendin to financial institutions sho-ed drastic increases durin the year
2++3 that is *8.+*9.the inter /ank /orro-in has risen fro# 21.129 to
43.3490decreasin the advances fro# 25.2*9 to 11.*39.a slo- do-n in
advances is due to hih interest rate in econo#y as a cost of /orro-in #oney has
ra,idly risen u, in the liht of tiht #onetary ,olicy. total de/t sho-ed the
decreasin trend fro# 14.&39 to 12.*39.shareholders e5uity also shoed an
increasin trend fro# 1204&9 to 34.+19
+,.,. 'oriIonta$ Ana$!sis of Income Statement5
The follo-in ta/le sho-s the hori$ontal analysis of the inco#e state#ent of the
year 2++*0 2++8 and 2++3.
&)
Allied Bank Limited
Ta/le 4.4 sho-s the hori$ontal analysis of inco#e state#ent
Rupees in @:::A Dages
.::> .::; .::C
*rend
ana$!sis
.::> s,
.::;
.::; s,
.::C
InterestJreturnJ non interest earned
2ark<
u,QreturnQinterest
earned
212+1 3+5*1 41122
44.13 34.+1
6ee0 co##ission
or /rokerae and
e1chane
inco#e
2258 32&& 34*+
44.&4 &.24
"a,ital ain and
dividend inco#e 1585 15*1 2452
<+.88 5&.+*
Other inco#e ** 53 3&
<23.3* <38.38
*ota$ -C.: +;C> /C/;
.+,C. .4,==
InterestJreturnJ non interest e?pense
2ark<
u,QreturnQnon
interest e1,ense 1++33 1*2*3 22422
*1.13 23.8
O,eratin
e1,enses &1*4 8431 3&+3
3&.55 13.3*
Profit /efore
,rovision 8855 3*&4 15+43
1+.2& 54.12
Ta1ation :18**; :13&4; :3414;
4.&3 *3.82
*ota$ e?penses7
percentage of
tota$ income /C/- =4.4 4:/-=
.,;.. >.,4.
"rofitJ$oss after
*a?ation +:>= +4/> >4..
4,C; >4,-.
Source> annual re,ort of Allied /ank 2++3
&4
Allied Bank Limited
Bra,h 4.& sho-s the hori$ontal analysis of inco#e state#ent
+,.,.,4 Interpretation5
The hori$ontal analysis of inco#e state#ent indicates that the /ank has sho-n a
ra,id increases in all se#ents durin 2++3.allies /ank declared ,rofit after ta1 of
(s.*1.39.,rofit has declared due to ood ,erfor#ance of earnin assets:advances
0invest#ents and lendin to financial institutions;.this increases in ,rofit is due to
lo- o,eratin e1,enses and interest e1,ense.
The /ank net interest inco#e and non<interest inco#e sho-ed a sta/le ro-th
durin /oth the trend. So overall the /ank has -itnessed the increase in ,rofit.

+,- )inancia$ Ratio ana$!sis5
6inancial ratios are used to -eiht and evaluate the o,eratin ,erfor#ance of
the fir#. 6inancial ratios #ay /e used to co#,are>
One ratio to a related ratio
The fir#7s ,erfor#ance to #anae#ent7s oal
The fir#7s ,ast and ,resent ,erfor#ance
The fir#7s ,erfor#ance to si#ilar fir#
These ratios are hel,ful to /oth internal and e1ternal users. %nternal user such as
#anae#ent also e#,loys financial analysis for the ,ur,ose of internal control
and to /etter look over the financial ,erfor#ance of the orani$ation. As fro#
&6
Allied Bank Limited
e1ternal ,oint of vie- creditors and investors have keen interest in financial
ratios.

+,-,4Li%uidit! ana$!sis5
)i5uidity ratio indicates ho- 5uickly and easily a co#,any can o/tain cash for its
need. These ratios #easure the short<ter# solvency of the fir#. These ratios are
s,ecial interest to short<ter# creditors. T-o co##only used li5uidity ratios are
current ratio and 5uick ratio.
+,-,4,4 &urrent ratio5
The current ratio co#,ares assets of the fir# :cash and other assets that can /e
easily converted to cash; to all the co#,any7s current lia/ilities :lia/ilities that
#ust /e ,aid -ith cash soon;. The hiher the ratio0 the reater is co#,any7s
a/ility to #eet its short<ter# o/liation as they co#e due. "urrent ratio is
calculated /y dividin current Assets /y current lia/ilities.
&urrent ratioKcurrent AssetsJ current $iabi$ities
*he fo$$o#ing tab$e sho#s the current ratio of ABL for the $ast three !ears,
&urrent ratio of ABL oertime
Ta/le 4.5
.::> .::; .::C
&urrent assets -44/:. -+C>;= +:.>:4
&urrent $iabi$ities .C:+:: -.;.:/ ->4;/=
&urrent ratios 4,:> 4,:= 4,:;
Source5 annua$ report of A$$ied ban8 .::C
&;
Allied Bank Limited
0raph +,>
1#0$
1#0$$
1#0%
1#0%$
1#0&
1#0&$
1#0'
200& 200' 200(
200&
200'
200(
+,-,4,4,4 Interpretation5
"urrent ratio for year 2++* is 1.+* indicates that co#,any has 1.+* in current
assets to cover (S.1.++ in "urrent lia/ilities.
"urrent ratio for year 2++8 is 1.+& indicates that co#,any has (S1.+& tin current
assets to cover (S.1.++ in current lia/ilities7
"urrent ratio for year 2++3 is 1.+8 in current Assets to cover (S.1.++ in current
lia/ilities.
The AB) current ratio sho-s u,<-ard trend in 2++3 than decline in 2++8 and
aain #oves u,<-ard in 2++3. There is a sliht difference a#on the three ratios.
'iher the current ratio0 hiher is the a/ility of the /ank to #eet its short<ter#
o/liations as they /eco#e due. This in turn decreases the risk of short<ter#
insolvency due to insta/ility of #eetin -ith s#all a#ount of current assets to
short ter# o/liation as they /eco#e due.
+,-,. Actiit! Ratio5
Activity ratio also kno-n as efficiency or turn over ratio #easures ho-
effectively the fir# is usin its assets. Cvery /usiness faces funda#ental decisions
a/out ho- #uch to invest in assets such as receiva/les inventories and fi1ed
assets ant then it has the res,onsi/ility of usin these assets effectively. To
#easure this efficiency0 the follo-in ratios are used.
)8
Allied Bank Limited
+,-,.,4Adances *urnoer Ratio5
The advance turnover ratio ,rovides insiht into the 5uality of the /ank0 advances
ho- successful the /ank is in its collection and interest earned. This ratio is
calculated /y dividin net advances /y #ark u, earned.
Adances turn oer ratio K mar8up earned E net adances
The advances turn over in days can also /e calculated /y dividin advance turn
over ratio /y the days in year :3&5;.
)ormu$a5
Adances turn oer in da!s K -=/ E A*R
Ta/le 4.&
2++* 2++8 2++3
Mar8up earned .4.:4 -:/>4 +44..
Net assets 4>;/.+ ..-=+: .+C;;>
Adance turn
oer ratio :,44 :,4- :,4=
In D 44,;>D 4-,=D 4=,+D
Adance turn
oer da!s -:-4 Da!s .=-- Da!s .4;; Da!s
Source5 annua$ report of A$$ied ban8 .::C
0raph +,;
)1
Allied Bank Limited
0
0#02
0#0)
0#0%
0#0'
0#1
0#12
0#1)
0#1%
200& 200' 200(
200&
200'
200(
+,-,.,4,4Interpretation5
The advance turn over ratio sho-s an u,-ard trend0 -hich sho- that the credit
de,art#ent of the fir# is efficient in collectin advances. %n 2++* the advance
turn over ratio is +.110 it increases in 2++8 u, to +.13 and in ++3 it aain increases
to +.1&.
The calculation sho-s the lenth of ti#e of Allied /ank to collect advances. the
credit de,art#ent -as efficient in colletin advances for 2++3 is 2188days as
co#,ared for 2++* in 3+31 days.
+,-,.,. *ota$ Asset *urnoer5
This sho-s revenue enerated ,er ru,ee0 invest#ent in total assets. This ratio is
calculated /y dividin total revenue N sales /y total assets.
)ormu$a5
Assets turn oer ratio K Mar8 up earned E tota$ assets,
Ta/le 4.*
)2
Allied Bank Limited
.::> .::; .::C
Mar8up earned .4.-: -:/>4 +44..
*ota$ assets -.:44: -===C= +4;->+
Asset turner ratio :,:== :,:;-- :,:C;
Source5 annua$ report of A$$ied ban8 .::C
0raph +,C
0
0#02
0#0)
0#0%
0#0'
0#1
200& 200' 200(
200&
200'
200(
+,-,.,.,4Interpretation5
Total asset turnover value for year 2++3 is 3.89 -hich is reater as co#,ared to
asset turn over for the year 2++8 is 8.39 and for the year 2++* is &.&9. This
hiher turnover sho-s the shorter ti#e in assets a/ility to enerate revenue. This
sho-s that the efficiency of the fir# is i#,rovin.
+,-,- Leerage Ratio5
)everae ratio #eans ho- #uch a co#,any o-es to others. The financial analyst
uses de/t ratio to assess the relative si$e of a fir#7s de/t0 loan and the fir#7s
)3
Allied Bank Limited
a/ility to ,ay off the de/ts. )everae ratio #easures the a#ount of financial
leverae. As de/t is a #a?or source of financin and /ankin industry ty,ically
uses the hihest ,ercentae of de/ts. De/t financin ,rovides the sinificant ta1
advantae and its transaction costs are lo-er than that of e5uity. "o##only used
leverae ratios are de/t ratio0 de/t to e5uity ratio and e5uity #ulti,lier.
+,-,-,4 Debt to the tota$ asset ratio5
The de/t to total asset ratio #easure the ,ercentae of the fir#7s assets that are
financed -ith de/t. "reditor of the co#,any -ould enerally like this ratio to /e
lo-. Dividin a fir#7s total de/t /y its total assets derives the desired ratio.
)ormu$a5
Debt to the tota$ asset ratio K tota$ debt E tota$ assets,
*ab$e +,;
.::> .::; .::C
*ota$ debt -::.-4 -++-+: -;;+4+
*ota$ asset -.:44: -===C= +4;->+
Debt ratio :,C-> :,C-C :,C.;
Source5 annua$ report of A$$ied ban8 .::C
0raph +,4:
)4
Allied Bank Limited
0#(22
0#(2)
0#(2%
0#(2'
0#(*
0#(*2
0#(*)
0#(*%
0#(*'
0#()
200& 200' 200(
200&
200'
200(
+,-,-,4,4 Interpretation5
The a/ove ta/le sho-s that al#ost 339 of AB) assets are financed /y de/t. %n
other -ords0 the clai# of share holders over the /ank assets is /elo- *9. 'ih
de/t ratio result in savin ta1es and creatin leverae effect due to -hich a little
chane in revenue /rins #ore than ,ro,ortionate chane in net inco#e.
These decline values of de/t ratio #ay indicate that the co#,any stock holders
,ro/a/ly -ould not -ant to take a risk of de/t. And -ant to ,rotect the
stockholders fro# unfavora/le effects of leverae.
+,-,-,. Debt to e%uit! ratio5
De/t to e5uity ratio is co#,uted /y si#,ly dividin the total de/t of fir#
:includin current lia/ilities; /y its stock holder7s e5uity.
)ormu$a5
Debt to e%uit! ratio K tota$ debt E share ho$ders e%uit!
)&
Allied Bank Limited
Ta/le 4.3
2++* 2++8 2++3
*ota$ debt -::.-4 -++-+: -;;+4+
Share ho$ders
e%uit!
4;+:; .:;:/ ./;C4
Debt to e%uit!
ratio
4=,- 4=,/ 4/,::
Source5 annua$ report of A$$ied ban8 .::C
0raph +,44
1)
1)#$
1$
1$#$
1%
1%#$
200& 200' 200(
200&
200'
200(
+,-,-,.,4Interpretation5
De/t to e5uity ratio of 1&.5 for year 2++8 and 15.++ for 2++3 indicates the o-ners
e5uity in relation to total clai# on /usiness /y all ty,e of creditors. The value
sho-s that allied /ank is #akin little use of de/t and has its hih ratio of tani/le
net -orth ,rovides lare cushion for creditors in -ake of loss.
This sho-s that the de/t ac5uired for /oostin u, /ank7s ,erfor#ance has
decreased -ith a reasona/le chane in e5uity of the /ank.
))
Allied Bank Limited
+,-,-,- E%uit! ratio5
C5uity ratio tells us a/out the shareholders ,ercentae in the total assets of any
fir#. The e5uity ratio is o/tained /y dividin shareholders e5uity /y the total
asset.
E%uit! ratio K shareho$ders e%uit!Etota$ assets
*ab$e +,4:
.::> .::; .::C
Shareho$ders
e%uit!
4;+:; .:;:/ ./;C4
*ota$ assets -.:44: -===C= +4;->+
E%uit! ratio :,:/> :,:/= :,:=4
Source5 annua$ repot of A$$ied ban8 .::C
0raph +,4.
0#0$*
0#0$)
0#0$$
0#0$%
0#0$&
0#0$'
0#0$(
0#0%
0#0%1
200& 200' 200(
200&
200'
200(
+,-,-,-,4 Interpretation5
The a/ove ta/le sho-s a sliht increase in the year 2++3 as the total assets of the
/ank increase0 there -as a ,ro,ortionate increase in the shareholder7s e5uity as
)4
Allied Bank Limited
-ell0 -hich indicates shareholders interest. This increase has /een due to increase
in ca,ital reserves and tiht control over the accu#ulated loss and other reserves
as co#,are to the ,revious year.
+,-,-,+ E%uit! Mu$tip$ier5
The e5uity #ulti,lier is yet another #easure of financial leverae. The e5uity
#ulti,lier is o/tained /y dividin the total assets of the /ank /y the shareholders
e5uity of the /ank.
E%uit! mu$tip$ierKtota$ assets E shareho$ders e%uit!
*ab$e +,44
.::> .::; .::C
*ota$ assets -.:44: -===C= +4;->+
Shareho$ders
e%uit!
4;+:; .:;:/ ./;C4
E%uit! mu$tip$ier 4>,- 4>,=. 4=,4/
Source5 annua$ report of A$$ied ban8 .::C
0raph +,4-
)6
Allied Bank Limited
1$
1$#$
1%
1%#$
1&
1&#$
1'
200& 200' 200(
200&
200'
200(
+,-,-,+,4Interpretation5
AB) C5uity 2ulti,lier sho-s the decreasin trend as it dro,s fro# 1*.3 in 2++*
to 1&.15 in 2++3.
+,-,+ "rofitabi$it! ratios5
Profita/ility ratios #easures ho- #uch co#,any revenue is eaten u, /y e1,enses0
ho- #uch a co#,any earns relative to sales enerated0 and a#ount earned
relative to the value of the fir#7s assets and e5uity. T-o kinds of ,rofita/ility of
,rofita/ility ratios are co##only usedE ,rofit #arins0 -hich #easures
,erfor#ance in relation to sales0 and return ratios that #easures the ,erfor#ance
relative to so#e #easure of the si$e of the invest#ent.
+,-,/ "rofit margin ratio5
4nder this headin0 t-o co##only used ratios are ross ,rofit #arin and net
,rofit #arin ratios. These are no- discussed in detail.
+,-,/,40ross profit margin5
Bross ,rofit is the difference /et-een revenues and cost of oods or services sold.
Bross ,rofit is a critical /ecause it re,resents the a#ount of #oney re#ainin to
,ay the o,eratin e1,enses0 financin cost0 ta1es and to ,ay for ,rofit. Bross
);
Allied Bank Limited
,rofit #arin is the a#ount of each sale ru,ee left over after ,ayin the cost of
oods or services sold. %t is calculated as follo-s>
0ross profit marginK gross profitE reenues L4::
*ab$e +,4.
.::> .::; .::C
0ross profit 444:; 4-.C; 4;>::
Reenues .4.:4 -:/>4 +44..
0ross profit
margin
/.,-D +-D +/D
Source5 annua$ report of A$$ied ban8 .::C

0raph +,4+
0#00+
10#00+
20#00+
*0#00+
)0#00+
$0#00+
%0#00+
200& 200' 200(
200&
200'
200(
+,-,/,4,4 InterpretationH
48
Allied Bank Limited
AB) ross ,rofit #arin sho-s the decreasin trend fro# 2++* to 2++8 i<e fro#
529 decreases u, to 4390 -hile in 2++3 an increase in ,rofit #arin takes ,laces
u, to 459. This sho-s that the AB) ross ,rofit rate reasona/ly unsta/le durin
the three years and also sho-s the insta/ility in consu#er de#and for the /ank
services. Thus the inefficiency of the /ank7s in controllin cost of sales :#ark<u,
e1,ense;.
+,-,/,. Net profit margin5
The net ,rofit #arin #easures the ,rofit that is availa/le fro# each ru,ee of
sales after all e1,enses have /een ,aid0 includin cost of sales0 sellin0 eneral
and ad#inistration e1,enses0 de,reciation0 interest and ta1es. The ratio calculated
as follo-
Net profit marginKnet profit after ta?esEreenuesL4::
*ab$e +,4-
.::> .::; .::C
Net income +C>= +4/> >4..
Reenues .4.:4 -:/>4 +44..
Net profit margin 4C,.D 4-,/D 4>,-D
Source5 annua$ report of A$$ied ban8 .::C
41
Allied Bank Limited
0raph +,4/
0#00+
$#00+
10#00+
1$#00+
20#00+
200& 200' 200(
200&
200'
200(
+,-,/,.,4Interpretation5
.et ,rofit #arin of AB) has also i#,roved over ti#e and is sho-in a risin
trend in 2++3 -hich is 1*.39. %n 2++8 .P2 is 13.59 -hich decreases as
co#,are to .P2 of 2++* is 13.29. This increase in ,rofit #arin is due to
reduction in interest or ta1 e1,enses. 'o-ever the ,ercentae chane in the ross
,rofit #arin is #ore than the ,ercentae chane in net ,rofit #arin after takin
in to account cost of sales0 Ad#inistration e1,enses0 interest e1,ense and ta1es.
+,-,/,- (perating "rofit MarginH
The o,eratin ,rofit #arin ratio #easures the cost of ood sold0 as reflected in
the ross ,rofit #arin ratio0 as -ell as all the o,eratin e1,enses. This ratio is
calculated /y dividin earnins /efore interest and ta1es :CB%T or o,eratin
inco#e; /y salesQ revenue.
(perating profit margin K earning before interest and ta?esEreenue
earnedL4::
42
Allied Bank Limited
Ta/le 4.14
.::> .::; .::C
EBI* 4/:.C 4;4C/ .+=/;
Reenues .4.:4 -:/>4 +44..
(perating profit
margin >:,;;D /C,/4D /C,C=D
Source5 annua$ report of A$$ied ban8 .::C
0raph +,4=
$2#00+
$)#00+
$%#00+
$'#00+
%0#00+
%2#00+
%)#00+
%%#00+
%'#00+
&0#00+
&2#00+
200& 200' 200(
200&
200'
200(
+,-,/,-,4Interpretation5
The o,eratin ,rofit #arin of AB) has sho-n a decreasin trend over the ,eriod
of ti#e. The hihest ,ercentae -as recorded in year 2++* is *+.889 -hile it
-ent on decreasin for the year 2++8 and 2++3 u, to 53.519 and 53.3&9
res,ectively.
+,-,= Return ratio5
43
Allied Bank Limited
4nlike ,rofit #arins0 return ratios e1,ress ,rofita/ility in relation to various
#easures of the invest#ent in the co#,any. T-o ratios are co##only used>
(eturn on asset
(eturn on e5uity.
+,-,=,4Return on Assets5
(eturn on assets0 also called return on invest#ent :(O%;0 #easures ho- #uch
inco#e each ru,ee of assets ,roduces on averae. %t sho-s -hether the /usiness is
investin in its assets effectively. The (O% ratio is calculated /y dividin net
inco#e /y the total assets of the fir#.
Return on inestment K net profit after ta?esE tota$ assetsL4::
*ab$e +,4/
.::> .::; .::C
Net income +:>= +4/> >4..
*ota$ Assets -.:44: -===C= +4;->+
R(I 4,.>D 4,4-D 4,>:.D
Source5 annua$ report of A$$ied ban8 .::C
44
Allied Bank Limited
0raph +,4>
0#00+
0#20+
0#)0+
0#%0+
0#'0+
1#00+
1#20+
1#)0+
1#%0+
1#'0+
200& 200' 200(
200&
200'
200(
+,-,=,4,4InterpretationH
The ta/le sho-s that (O% of AB) has sho-n i#,rove#ent over a ,eriod of 3
years. The return on assets sho-s that co#,any has earned hih return in year
2++3 is 1.*+29 as co#,are to year 2++8 and 2++*. This sho-s that /usiness of
Allied /ank is -ell #anaed and has /riht future ,ros,ects.
+,-,=,. Return on e%uit!5
The return on e5uity :(OC; ratio #easures the averae return on the fir#7s
ca,ital contri/ution fro# its o-ners. %t indicates ho- #any ru,ee of inco#e -as
,roduced for each ru,ee invested /y the stockholders.
Return on e%uit! Knet profit after ta?esEstoc8 ho$derMs e%uit!L4::
4&
Allied Bank Limited
*ab$e +,4=
.::> .::; .::C
Net income +:>= +4/> >4..
Stoc8ho$ders
e%uit!
4;+:; .:;:/ ./;C4
Return on e%uit! ..D .:D .>D
Source5 annua$ report of A$$ied ban8 .::C
0raph +,4;
0+
$+
10+
1$+
20+
2$+
*0+
200& 200' 200(
200&
200'
200(
+,-,=,.,4Interpretation5
This ratio sho-s that rate of return earned /y co#,any in year 2++3 is hih. As
/ank has earned return of 2*9 on invest#ent durin year 2++3 -hich is reater
than return earned on e5uity durin year 2++8 1<e 2+9

4)
Allied Bank Limited
+,+ S6(* Ana$!sis5
S!OT is the a//reviation of four -ords that are @SA stands for strenth @!A
stand for -eaknesses @OA stands for o,,ortunities and @TA stands for threats.
Strenth and -eaknesses are the internal factors of the orani$ation and these are
also kno-n as the #icro factors /ut the o,,ortunities and threats are the e1ternal
factors and these are kno-n as the #acro factors. 2icro factors are the
controlla/le factors /ut the #acro factors are uncontrolla/le.
The easiest -ay to kno- a/out any orani$ation is the S!OT analysis. So to
reveal the hidden factors % did a S!OT analysis of the Allied /ank. %t is not the
S!OT analysis of AB) as a -hole /ut only of the /ranch -here % -orked. 2any
as,ects are sa#e al#ost in every /ranch of the Allied /ank.
+,+,4Strengths
Allied /ank has #a1i#u# nu#/er of /ranches in all over Pakistan. %t has
#ore than *35 /ranches connected to each other throuh an online
net-ork.
The online /ankin feature ,rovides less chances of fraud /ecause
-henever so#e transactions take ,lace0 they can /e checked any ti#e and
their recei,ts are iven to the custo#ers.
The facility of online /ankin allo-s a custo#er to send or de,osit #oney
throuh cash or a check to an account of any other /ranch of AB). %t also
ives the facility of /alance in5uiry and cash -ith dra-l fro# a certain
account of any other /ranch of AB) throuh check.
Allied /ank is the only /ank that ,rovides the lockers facility to their
custo#ers at all of their /ranches.
The /ank ,rovides the forein e1chane facilities includin forein
currency accounts0 )N" and other e1,ortNi#,ort facilities. The custo#ers
44
Allied Bank Limited
et the facility of #oney e1chane on the current rates -hich are ,rovided
/y the head office daily.
The custo#er care center of Allied Bank ,rovides toll free nu#/ers on
-hich custo#ers can dial -ithout ,ayin anythin to et su,,ort on the
s,ot.
At Allied /ank the custo#ers havin #ore than one account can have the
facility of the sa#e account nu#/er only the suffi1 is chaned. This
facility ,rovides the custo#er -ith easy re#e#/erin of the account
nu#/er.
Allied /ank offers loans to its custo#ers on very lo- rates. This thin
invites the custo#ers to do a /usiness -ith AB).
"a#eras are installed in all the /ranches of the /ank to ensure security.
Also security uards are availa/le throuh out the day.
The ,erfor#ance a,,raisal is done on 5uarterly /asis in this orani$ation0
-hich results in its /etter ,erfor#ance.
The /ank also conducts se#inars on certain to,ics like ho- to i#,rove
their service 5uality and the concerned ,erson fro# al#ost every /ranch
of the reion attends these se#inars sharin their kno-lede and
e1,erience -ith each other.
Staff of the /ank is 5ualified and e1,erienced. The /ank officials have ot
advance kno-lede and e1,erience in the fields of #anae#ent0 /ankin
la- and ,ractice.
The relationshi, of the #anaer and the other staff of the orani$ation are
really ood -ith the custo#ers0 -hich results in ood -ill and loyalty of
the custo#ers to-ards the orani$ation.
46
Allied Bank Limited
6or e#,loyees the rela1ation is that the e#,loyees #ay et the 3& #edical
leaves and 1<#onth vacation in one year -ith their ,ay in case of so#e
e#erency.
+,+,. 6ea8nesses
The decision #akin in the /ank is co#,letely centrali$ed. The #anaer
has no ,o-er to take decisions /y hi#self in so#e i#,ortant as,ects like
the e1tent of credit to custo#ers. This takes a lot of ti#e for ,rocessin
and causes a delay for the custo#er.
Secondly0 lack of co#,uteri$ed syste#s in the /ranch is another #a?or
-eakness in the /ank. The 2%S syste# is o,erated at the reional level /ut
not at the /ranch level.
+,+,- (pportunities
Allied Bank is still -orkin in the cor,orate sector and its #issin a /i
#arket share of consu#er /ankin. %f it enters this #arket than this /ank
can /eco#e the /iest and the #ost efficient /ank of Pakistan.
Due to the increase of interest of ,eo,le in /usiness field0 #any /usiness
institutions have /een esta/lished0 -hich ,roduces a lot of 5ualified and
co#,etent /usiness ,rofessionals. So0 the /ank can hire #ore 5ualified
,eo,le fro# #arket.
The ,olicies of the ne- overn#ent to u,lift the econo#y and ,ursue
financial sector refor#s are e1,ected to yield ,ositive result in the /ankin
industry of the country. The AB) is very -ell ,raised to avail ,ro#isin
o,,ortunities.
4;
Allied Bank Limited
As a result of the different ste,s taken /y the overn#ent reardin the
/etter#ent of the econo#y s#all /arro-ers are attracted to et the
financin and start s#all /usiness. So the AB) has an o,,ortunity to
attract the custo#ers /y ivin the# attractive sche#es.
+,+,+ *hreats
The #ain co#,etitors in the /ankin sector are the Bank<Alfalah0 6aysal
Bank0 2usli# "o##ercial Bank and 2ee$an /ank etc. Due to the touh
co#,etition the /ank is forced to lo-er its rates and other services at
#ini#i$ed cost. This reduces the ,rofit #arin -hich is a /i hurdle in the
-ay of innovation and e1tended custo#er services.
The Ta1 chared on the inco#e of /ankin co#,anies is #uch hiher than
on the inco#e of other co#,anies causin threat to the /ank. The Bovt.
revises the ta1 ,olicies on continuous /asis0 -hich often are not in the
interest of the industry includin the /ankin sector.
Political conditions in Pakistan have /een unsta/le since a very lon
,eriod. "ontinuous chanes of rei#es and #ilitary intervention in the
,olitical affairs are reat threat to-ards the healthy ro-th of the industry
as a -hole.
Sudden rise and fall in the trade and industry conditions of the country
also adversely affect the ro-th of /ankin sector. 4ne#,loy#ent0
unfavora/le /alance of ,ay#ent and trade0 decreased ,er ca,ita inco#eE
inflation and deflation0 recession and /oo# are the source to the
handica,,ed ,roress of /ankin sector.
The other orani$ations of si#ilar nature are offerin #ore salaries and
/enefit ,ackaes to their e#,loyees. So0 there is a threat to the
orani$ation that their current e#,loyees #ay leave it.
68
Allied Bank Limited
&'A"*ER /
RE&(MMENDA*I(NS
"onsu#er /ankin is the area /ank is not dealin -ith and havin a lot of
o,,ortunities for the /ank. So it -ill /e /eneficial for the /ank if it start
dealin in auto loans0 housin finance or any other consu#er re5uire#ent.
6inancin facilities in the /ank are favora/ly iven to those havin hue
/ank /alances -hereas others havin s#all accounts0 -ho are in a real
need are inored. So financial facilities should /e ,rovided to those havin
s#all /ank /alances as -ell.
Short ter# lendin of the /ank has decreased in 2++3 /ecause the /alance
of the /ank -ith other /anks has increased to a reat e1tent. %t should /e at
least #aintained so that the /ank -ill /e a/le to enerate ,rofit in short
,eriod of ti#e.
The net interest inco#e of the /ank is lo- /ecause of increased e1,enses
and as a result ,rofit is also lo-. These e1,enses should /e #ini#i$ed and
#anaed efficiently to enerate #ore ,rofits for the /ank.
2anae#ent infor#ation syste# is o,erated only at the reional level.
Bank should start its co#,uteri$ed syste# at the /ranch level as -ell to
increase its accuracy and ,rocessin and to kee, its o-n data u, to the
#ark.
61
Allied Bank Limited
As the /usiness is e1,ected to ro- in the future so the /ank needs to
e1,and its s,ace to acco##odate additional custo#ers. 6urther0
custo#ers0 -aitin for their turns0 should /e ,rovided -ith ,ro,er seatin
arrane#ents and ,ro,er ,arkin facility for staff and custo#ers should /e
,rovided.
C#,loyees should /e iven on ?o/ trainin0 refresher courses and
-orksho,s0 to et the re5uired kno-lede. All staff #e#/er should /e
iven trainin accordin to their res,ective de,art#ent.
The #anaer of the /ranch should deleated -ith so#e ,o-ers reardin
the credit e1tendin facilities to save the ti#e of custo#ers and to
entertain #ore custo#ers at the sa#e ti#e.
At a ,resent the /ehavior of the e#,loyees to-ards custo#ers is very
/ureaucratic0 they should /e iven ,ro,er trainin in reard to #odern
co##unication techni5ues0 custo#er handlin and they should /e iven a
re5uired trainin for i#,rovin their co##unication skills in s,eakin and
in -ritin. The /ank should e#,hasi$e i#,rove#ent in co##unication
a#on different de,art#ent /y introducin #odern #eans of
co##unication,
As a /ank fallo-s the very lenthy ,rocedure for sanctionin the credit
,ro,osal0 es,ecially0 head office takes a lot of ti#e for the a,,roval of
,ro,osal. This delay causes dissatisfaction a#on clients. %n order to
re#ove all these difficulties the /ank should ado,t the fle1i/le -ay of
acce,tance and ,rovide ti#ely services to their custo#ers.
The /ank officially should take e1tre#e care to analy$e the financial
state#ents of the /orro-ers. The /ank so#e ti#es does not use audited
financial state#ents0 as they do not contain relia/le data. Therefore /ank
should ensure that audited financial state#ents are used and credit
e1tension is #ade to financially stron institution.
62
Allied Bank Limited
6or the #otivation and enhancin the efficiency of the /ank e#,loyees0
the /ank should ive ,erfor#ance /ased ,ay to their e#,loyees. The /ank
should set ,erfor#ance taret for the credit de,art#ent and on
achieve#ents e#,loyees should /e a-arded for their ,erfor#ance. %t -ill
serve a direct incentive for staff to achieve tarets ,articularly0 -hich
enco#,asses the area of custo#ers care.
The #anae#ent should clearly discuss ,lansN strateies and once ado,ted
the ,lansNstrateies should /e clear to all levels of #anae#ent in the
/ank0 as this i#,roves the i#,le#entation of ,lansNstrateies.
BIBLI(0RA"'1
1. David0 (.6. :1338;. *
th
Cdition strateic #anae#ent> "once,t and
"ases. .e- =ersey> Prentice<'all %nc.
2. C#ery0 D.(. =.D. Sto-e. :1338; Princi,les of financial #anae#ent.
.e- =ersey> Prentice<'all.
3. Briffin (.! :133*; 2anae#ent. Delhi> A.%.T.B.S. Pu/lishers and
Distri/utors.
4. 'o-ard0 2.A :13*3;. 2anae#ent CssentialsE "once,ts and
A,,lications. "hicaoE Science (esearch Associates0 %nc.
5. Fenney0 (.D and S.K. 2c 2ullen. :13*8;. &
th
addition. 6inancial
State#ents> 6or#0 Analysis0 and %nter,retation. )ondon> %r-in<Dorsey
%nternational.
&. 2eenai0 S.A. 2oney and Bankin in Pakistan. Farachi> The Allies
Book "or,oration.
*. .asir0 2.S. 2oney Bankin and 6inance0 Fita/ 2arka$> 6aisla/ad.
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1+. Sayers0 (.S. 2odern Bankin. O1ford> The "larendon Press.
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13. S. Fevin Professor of "o##erce 4niversity of Ferala0 Trivandru#>
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Allied Bank Limited
ANNE2URE
Ba$ance sheet
Assets
.::> .::; .::C
&ash and
ba$ances #ith
treasur!
ban8s
3+4+8 25*51 2**1&
Lending the
financia$
institution
18413 15*33 28123
Inestment 84151 84&+2 3&3*5
Adances 1*8524 223&4+ 24388*
(perating
)i?ed Assets *543 11134 1244*
(thers Assets
113&8 18333 1*355
*ota$ assets -.:44: -===C= +4;->+
Liabi$ities
&ustomer
deposits 2&33*2 23*4*5 3288*5
Inter ban8
borro#ings 22334 2***8 33813
Bi$$s pa!ab$e
3434 2352 31&2
(ther
$iabi$ities *332 13&3& 11+&1
sub7 ordinate
$oans 2433 2438 543*
*ota$
$iabi$ities -::.-4 -++-+: -;;+4+
E%uities
Share capita$ 538& &4&4 *11+
Reseres 2&32 34&3 4888
6&
Allied Bank Limited
Un7
appropriate
profitJ $oss
&3*1 853* 12138
E%uit!7tier 4 184+8 2+8+5 25831
Surp$us on
rea$uation of
assets 14*+ 155+ 4+&3
*ota$ e%uit! 4C;>; ..-/= .CC=:
Income statement
6)
Allied Bank Limited
.::> .::; .::C
IncomeEincome
earned
2ark<
u,QreturnQinterest
earned
212+1 3+5*1 41122
6ee0 co##ission or
/rokerae and
e1chane inco#e 2258 32&& 34*+
"a,ital ain and
dividend inco#e 1585 15*1 2452
Other inco#e ** 53 3&
*ota$ -C.: +;C> /C/;
InterestEreturnEnon
interest e?pense
2ark<u,QreturnQnon
interest e1,ense
1++33 1*2*3 22422
O,eratin e1,enses
&1*4 8431 3&+3
Profit /efore
,rovision 8855 3*&4 15+43
Ta1ation :18**; :13&4; :3414;
*ota$ e?penses7
percentage of tota$
income /C/- =4.4 4:/-=
"rofitJ$oss after
*a?ation +:>= +4/> >4..
64