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FINANCIAL ANALYSIS

NET PROFIT MARGIN


NET PROFIT MARGIN RATIO
2006

2007

2008

2009

2010

Net Income

17022346

19033773

15458590

18211846

17563214

Markup Earned

44100934

50569481

60942798

77947697

88472134

Net Income /
Markup Earned

38.60%

37.63%

25.36%

23.36%

19.85%

Interpretation
This ratio gives a measure of Net Income in dollar generated by each dollar of sale. This
ratio remained the same in both year 2006 & 2007 and then decreased in next years, so
that the bank should make more effort to increase this ratio. It increases through
increasing sale and on the other hand reducing the expenses.

RETURN ON EQUITY:

RETURN ON EQUITY
2

2008
2006
Net profit

2007

17022346

19033773

53044649

69270631

SHAREHOLDERS EQUITY
RETURN ON EQUITY=
Net profit /
SHAREHOLDERS EQUITY

Interpretation

CURRENT RATIO

2009 010
182118
15458590 46
81367002

32.09%

27.48%

18.99%

1756321
4

947919 1037623
9 10

19.21%

16.9%

CURRENT RATIO:
2

2006

2007

2008

142279638

120085131

161976396

163820608

Current Liabilities

22309742

17947965

50677987

55899307

Current Asset /
Current Liabilities

6.37

6.69

3.19

2.93

Current Asset

2009 010

Interpretation
It shows the relationship between current asset and current liability. This ratio shows the
firm ability to cover its short term liabilities through short term assets. The current ratio is
greater in the year 2007 but as compared to other year it has decreases the next year
that means it has positive trend but this ratio decrease due to the decrease of current
asset.

GROSS PROFIT MARGIN

GROSS PROFIT MARGIN RATIO


2006

2007

2008

2009

Net Mark up

30153716

33629470

37058030

38458048

Markup or Interest
Earned

44100934

50569481

60942798

77947697

68.37%

66.50%

60.80%

49.33%

Net Markup /
Markup or interest
earned

Interpretation
This ratio shows the profit of the firm relative to sale. It measures the efficiency of the
firms operations

TOTAL ASSET TURNOVER

2010

TOTAL ASSET TURNOVER


2006

2007

2008

44100934

50569481

60942798

Total Asset

635132711

762193593

817758326

Mark up
earned /
total Asset

0.06

0.07

0.07

Mark up
earned

2009

2010

77947697 88472134

944232762 103502468
0
0.08
0.08

DEBT TO EQUITY
DEBT TO EQUITY RATIO
2006

2007

2008

2009

2010

Total Debt

553178593

645855938

715299108

824676384 906528852

Shareholder equity

53044649

69270631

81367002

94791919 103762310

Total debt/
Shareholder equity

8.74
10.43

9.32

8.79

8.69

Interpretation
In this ratio the firm compares the debts to shareholders equity and then sees the
comparison of different years.
Debt to equity ratio of NBP decreases over the five years and it has a good sign. It
means that the bank is paying his obligation through issuing more shares in the market
and cash receive from the issuing of new share in the market is used to pay the debts of
the bank.

RETURN ON TOTAL ASSET:

RETURN ON TOTAL ASSETS

NET PROFIT
AFTER TAX

2010

2006

2007

2008

2009

17022346

19033773

15458590

181211846

635132711

762193593

81775836

944232762

1035024680

2.68%

2.49%

1.89%

1.92%

1.69%

17563214

TOTAL ASSETS

NET PROFIT
AFTER TAX/
TOTAL ASSETS

Interpretation
It measures the firms ability to utilize its assets for the purpose of gaining high
profits thats why comparing net profit with total assets.
Comparing the investment of all the years we see that decrease within five years. It
means that it cannot be utilizing its assets more efficiently. It is bad sign of a
company.

DEBT TO TOTAL ASSET RATIO:

DEBT TO TOTAL ASSET RATIO:


2006

2007

2008

2009

2010

Total debt

553178593

64585939

715799108

824676384 906528852

Total Asset

635132711

762193593

817758326

944232762 1035024680

Total debt/
Total asset

0.87

0.85

0.87

0.87 0.87

Interpretation
The decreasing debt ratio shows the decreased share of debt in total assets as compared to
owners equity. The lower the share of the debt more will be the secure financial position. The
organiztation financing through equity then debt

RECIEVABLE TURNOVER / ADVANCES TURNOVER

RECIEVABLE TURNOVER RATIO

Mark up / Interest earned


Advances

Mark up / Advances

2006

2007

2008

2009

44100934

50569481

60942798

77947697 88472134

316110406

340677100

12986865

475243431 511720970

0.14

0.15

0.15

0.16 0.17

2010

EARNING PER SHARE:

EARNING PER SHARE


2006

2007

2008

17022346

19033773

15458590

NUMBER OF SHARES

709071

815432

896975

NET PROFIT/
NUMBER OF SHARES

24.01

23.34

17.23

NET PROFIT

2009 2010
18211846

17563214

1076370 1345463

16.92

13.05

Comments;
Ear type of ratio show the over all profitability of the firm with increase of profit the ratio is also
increase.

INTEREST RATIO
INTEREST RATIO

Interest
Paid
Interest
earned
Interest
Paid /
interest
earned

2006
13947218

2007
16940011

2008
23887468

2009
39489649

2010
45250476

44100934

50569481

60942798

77947697

88472134
51

31.63%

33.50%

39.19%

50.66%

.15%

NET INTEREST MARGIN RATIO

NET INTEREST MARGIN RATIO

Total
Interest
IncomeTotal
Interest
Expense
Total Asset
Total
Interest
incomeTotal
Interest
Expense /
Total Asset

2006
4410093413947218

2007
5056948116940011

2008
6094279823884768

2009
7794769739489649

2010
8847213445250476

635132711

762193593

817758326

944232762

4.75%

4.41%

4.53%

4.07%

103502468
0
4.
18%

INVESTMENT TO TOTAL ASSET

INVESTMENT TO TOTAL ASSET

Total
investment
Total Asset

2006
139946995

2007
210787868

2008
170822491

635132711

762193593

817758326

2009
201764282
2
944232762

2010
301323804
103502468
0

Total
Investment
/ Total
Asset

29
22.63%

27.66%

20.89%

23.05%

.11%