VERTICAL ANALYSIS

STATEMENT OF FINANCIAL POSITION

FOR THE YEAR ENDED DECEMBER31, 2022

PARTICULARS 2022 VARIANCE 2021 VARIANCE

% %
RUPEES RUPEES RUPEES RUPEES

ASSETS
Cash and balance 96,369 5% 164,613 8%
with treasury bank
Balances with 24,872 1% 18,830 1%
other banks
Lendings to 50,416 2% 42,467 2%
financial Positions
Investments 978,731 47% 1,035,585 53%
Advances 753,400 36% 589,711 30%
Fixed assets 79,918 4% 57,328 3%
Intangible assets 801 0% 979 0%
Deferred tax assets 7,547 0% _ _

Other assets 93,301 4% 60,955 3%

2,085,355 100% 1,970,468 100%

Liabilities
Bills payable 39,137 2% 24,590 1%
Borrowings 340,237 16% 269,526 14%
Deposits and other 1,378,717 66% 1,411,852 72%
accounts
Subordinated debt _ _ _ _
Deferred tax _ _ 729 0%
liabilities
Other liabilities 137,769 7% 89,365 5%
1,895,860 91% 1,796,061 91%
 Net assets 189,495 9% 174,407 9%

Represented by
Share capital 11,851 1% 11,851 1%
Reserves 88,578 4% 84,602 4%
Surplus on 18,641 1% 14,272 1%
revaluation of
assets
Unappropriated 70,425 3% 63,683 3%
profit
189,495 9% 174,407 9%

Interpretation
The above table shows the two years (2022 and 2021) vertical analysis of bank MCB. In 2022,
total assets consist of Rs2,085,355 (in Million) which is 100% out of which 5% were of cash ,1%
were of balances of bank with other banks . Net investments were 47%, lendings were 2%,
advances were 36% and other assets consist of 4% of total assets. In contrast, in 2021, total
assets were Rs 1,970,468 (in Million) out of which investments were 53%, advances were 30%
and cash were 8% . Other assets, fixed assets and lendings were 3%, 3% and 2% respectively.
This clearly shows that amounts of each aspect of total assets increased in 2022 as compared to
2021.

Total liabilities of 2021 were 91% out of which bill payable were 1%, borrowings were14%
Deposits and other accounts 72% and others liabilities 5%. In 2022 were 91% with 0% increase
out of which bill payable were 2%, borrowings were16% Deposits and other accounts 66% and
others liabilities 7%.

Net assets which is a difference of total assets and total liabilities became same in 2022 and
2021.all the components of net assets have same percentage.

VERTICAT ANALYSIS

Profit and Loss Account Statement

 FOR THE YEAR ENDED DECEMBER 31, 2022

Particular 2022 Variance 2021 Variance

% %

Rupees Rupees Rupees Rupees

Mark-up/return/ 200,763 89% 123,334 86%
interest earned
Mark-up/return/ (113,607) -50% (59,347) -41%
interest expense
Net 87,156 39% 63,987 45%
mark-up/interest
income (NMR)
Non 24,613 11% 20,074 14%
mark-up/interest
income
Total income 111,769 50% 84,061 59%
Non (43,186) -19% (36,894) -26%
mark-up/interest
expenses
Net 68,583 30% 47,167 33%
mark-up/interest
income before
provisions
Provisions and 2,782 1% 4,823 3%
write-offs-net
Profit before 71,365 32% 51,989 36%
taxation
Taxation (38,624) -17% (21,178) -15%
Profit after 32,741 15% 30,811 21%
taxation

Interpretation

In 2022, interest earned was 89 % and interest expensed was decreased 50% which resulted in
39% NMR. After adding interest income (11%) into NMR, total income became 50% which then
increase to 32% profit before tax due to non-markup expenses 19% and provisions and write-
offs. After subtracting 17% tax ,profit was 15% which was Rs 32,741Mn.
While in 2021, interest earned was 86% and interest expensed was decreased 41% which
resulted in 45% NMR. After adding interest income (14%) into NMR, total income became 59%
which then increased to 36% profit before tax due to non-markup expenses and provisions and
write-offs. After subtracting 15% tax , profit was 21% which was Rs 30,811Mn.