Askari Bank Limited Financial Statement Analysis
Askari Bank Limited Financial Statement Analysis
Askari Bank Limited Financial Statement Analysis
2. Vertical Analysis
3. Ratio Analysis
Financial Statement Analysis
Financial statement analysis is the process of identifying financial strengths and
weaknesses of the firm by properly establishing relationship between the items of
the balance sheet and income statement.
Horizontal analysis
Vertical analysis
Ratio analysis
Balance Sheet
Askari Bank Limited
Particular 2017 2016 2015 2014
Assets
cash & balances with 44,239,325 42,568,141 29,685,22 19,130,11
treasury banks 8 3
Balances with other banks 3,193,835 5,845,748 8,295,724 7,068,111
Lendings to financial 2,250,000 6,836,584 812,898 3,427,753
institution
Investments 314,956,74 295,846,254 268,020,7 217,214,2
8 06 47
Advances 258,693,08 235,163,922 199,930,8 170,677,2
6 12 94
Operating fixed assets 10,728,827 11,019,555 9,230,010 8,299,488
Assets held for sale 80,720 261,762 - 53,703
Deferred tax assets 100,755 - - 875,335
Other assets 22,465,073 21,597,227 19,891,33 20,336,50
6 1
656,708,36 619,139,193 535,866,7 447,082,5
9 14 45
Liabilities
Bills payable 10,769,262 8,579,227 6,094,885 6,855,020
Borrowings 71,587,311 89,261,788 57,323,25 13,742,03
0 0
Deposits & other 525,808,30 472,811,335 433,172,2 387,586,6
Accounts 8 05 20
Sub-ordinated loans 4,992,800 4,994,800 4,996,800 7,992,800
Liabilites against assets - - - -
subject to finance lease
Deferred tax liabilities - 526,430 96,404 -
Other liabilities 11,115,197 10,388,081 7,330,227 7,199,014
586,562,243 509,013,7 423,375,4
624,272,87 71 84
8
Net Assets 32,435,491 32,576,950 26,852,94 23,707,06
3 1
Owner’s Equity
Share capital 12,602,602 12,602,602 12,602,60 12,602,60
2 2
Reserves 11,948,415 8,670,686 6,445,888 4,823,738
Unappropriated Profit 2,849,878 4,084,206 2,763,314 1,862,223
27,400,895 25,357,494 21,811,80 19,288,56
4 3
Surplus on revalution of 5,034,596 7,219,456 5,041,139 4,418,498
assets-net of tax
32,435,491 32,576,950 26,852,94 23,707,06
3 1
Income statement
Particular 2017 2016 2015 2014
Mark-up/return/interest 36,267,220 35,408,195 36,592,09 34,604,210
earned 3
Mark-up/return/interest 20,071,965 20,496,757 21,690,38 22,710,924
expensed 6
Net Mark-up/interest 16,195,255 14,911,438 14,901,70 11,893,286
income 7
Reversal of provision (729,441) 315,840 (83,198)
against non-performing (1,189,533)
loans and advances-net
Impairment loss on 30,047 22,565 217,243 207,669
available for sale
investments
Provision for diminution 108,351 48,052 345,969 197,507
in the value of
investments-net
Reversal of provision (153,958) - - -
against assets held for
sale
Bad debts written off - - - -
directly
(658,824) 879,052 321,978
(1,205,093)
Net Mark-up/interest 17,400,348 15,570,262 14,022,65 11,571,308
income after provisions 5
Non mark-up/ interest
income
Fee, commission and 2,706,794 2,438,914 1,732,140 1,435,180
brokerage income
Dividend income 302,894 304,850 302,721 348,726
Income from dealing in 843,032 639,827 834,956 1,102,565
foreign currencies
Gain on sale of securities- 2,055,293 3,526,687 3,246,294 1,803,844
net
Unrealised gain /(loss) on
revaluation of - - - -
investments classified as
held for trading-net
Other income 347,470 300,195 573,477 744,134
Balance Sheet
2017 2016 2015 2014
Assets
Cash & balances with treasury banks 4 43 55 -
Balances with other banks 45 -30 17 -
Lendings to financial institutions -67 741 -76 -
Investments 6 10 23 -
Advances 10 18 17 -
Operating fixed assets -3 19 11 -
Assets held for sale -69 0 0 -
Deferred tax assets 0 0 -100 -
Other assets 4 9 -3 -
6 16 20 -
Liabilities
Bills payable 26 41 -11 -
Borrowings -20 56 317 -
Deposits & other Accounts 11 9 12 -
Sub-ordinated loans 0 0 -37 -
Liabilites against assets subject to finance 0 0 0 -
lease
Deferred tax liabilities 446 0 -
Other liabilities 7 42 2 -
6 15 20 -
Net Assets -0.4 21 13 -
Owner’s Equity -
Share capital 0 0 0 -
Reserves 37 35 34 -
Unappropriated Profit -30 48 48 -
8 16 13 -
Surplus on revalution of assets-net of tax -30 43 14 -
-0.4 21 13 -
Income Statement
2017 2016 2015 2014
%
Mark-up/return/interest earned 2 -3 6 -
Mark-up/return/interest expensed -2 -6 -4 -
Net Mark-up/interest income 9 1 25 -
Reversal of provision against non- 63 331 480 -
performing loans and advances-net
Impairment loss on available for sale 33 -90 5 -
investments
Provision for diminution in the value of 125 -86 75 -
investments-net
Reversal of provision against assets held 0 0 0 -
for sale
Bad debts written off directly 0 0 0 -
82 -175 173 -
Net Mark-up/interest income after 12 12 21 -
provisions
Non mark-up/ interest income
Fee, commission and brokerage income 11 24 21 -
Dividend income -1 1 -13 -
Income from dealing in foreign currencies 32 -23 -15 -
Gain on sale of securities-net -42 9 80 -
Unrealised gain /(loss) on revaluation of 0 0 0 -
investments classified as held for trading-
net
Other income 16 -16 -23 -
-
Total non-markup / interest income -13 6 26 -
4 10 23 -
Non mark-up/ interest expenses
Administrative expenses 6 17 10 -
Other provisions/ write offs 569 -93 6 -
Other charges -13 2 72 -
Total non-markup/ interest expenses 6 16 11 -
Interpretation:
In horizontal analysis of Askari Bank’s balance sheet, the bank’s net asset
decreases in 2017 as compared to previous year. At the same time total liabilities
also decreases in 2017. In the income statement net markup is decreased as
compared to previous years.
Vertical Analysis
Formula: Individual item of financial statement/total of item head*100
Balance Sheet
2017 2016 2015 2014
%
Assets
Interpretation:
Vertical analysis Askari Bank’s balance sheet shows that total assets are 100%.
Investments are 47% of its total assets in year 2017 and 48% in 2016, slightly
decreased in year 2017 from the previous year. The share capital remained same
that means there is no fresh issuance of bond. Vertical analysis of income
statement shows that markup return interest earned is 100%. Interest expense is
55% in 2017 and 58% in 2016, interest expense in 2017 is decreased as compared
to previous year of 2016.
Ratio Analysis
A ratio analysis is a quantitative analysis of information continued in a company’s
financial statements.
Current Ratio
Formula: Current assets/ Current liabilities
Interpretation:
Current ratio measures the business ability to pay its short term liabilities. Askari
bank’s current ratio analysis for 2017 is 1.01; it means current assets are slightly
more than current liabilities. In 2016 it was 1.02. As compared to previous year the
ratio of 2017 is decreased.
Debt Ratio
Formula: Total Debt/ Total assets*100