# Financial Analysis

Financial statement analysis is the process of undertaking the risk and profitability of a firm through analysis of reported financial information. It is a process of examining the relationship among financial statement elements and making comparison with relevant information. It is a valuable tool used by investors, creditors and financial analysts to make decisions regarding stocks and other financial instruments, and to make future predictions about a company performance by comparing company past and current financial position, and to check company's short and long rum ability to pay its debt. The overall objective of financial statement analysis is the examination of a firm's financial position and return on risk. Three primary tools are used by analysts to compare financial statement, which are, i) Horizontal Analysis ii) Vertical Analysis iii) Ratio Analysis

Horizontal Analysis
Horizontal analysis is also known as comparative or trend analysis. Comparative study of a balance sheet or income statement for two or more accounting periods, to compute both total and relative variances for each line item. It is conducted by setting consecutive income statement and balance sheet items side-by-side to review changes in individual categories in a year-to-year basis. The horizontal analysis is done by restating amount of each item or as a percentage, auch percentages are calculated by selecting a base year and assign a weight of 100 to the amount of each item in the base year. Formula= Current Year Amount / Base Year amount * 100

Vertical Analysis
The analyst calculates each item on a single financial statement as a percentage as a total. The total used by the analyst on the income statement is net sales, while on balance sheet it is total assets. This is also known as component percentages and common-size financial statement. 45

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Vertical analysis is a technique used to indentifying relationship between items in the same financial statement by expressing all amount as the percentage of the total amount taken as 100. In Vertical analysis are standardized by expressing them as percentage of some bases. Such as,   Components of balance sheet expressed as a percentage of total assets Components of income statement expressed as a percentage of sales

Ratios Analysis
Ratio analysis is a form of financial statement analysis that is used to indicate the firm's financial performance is several key areas. Ratios can be used to compare a firm's financial performance with industry average, ratios can also be used in a form of trend analysis to identify areas where performance has improved and dropped over time. Ratio analysis can be used to find the success rates, advancements, disabilities and potential of a business. Ratios are often classified using following terms such as,    Profitability Ratios Liquidity Ratios Solvency Rations

Financial Ratios allow for comparison;     Between companies Between industries Between different time period of company Between single company and its industry average

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Financial Highlights
(Rupees in Millions) Years Total Assets Deposits Advances Investments Shareholders' Equity Pre-Tax Profit After-Tax Profit Earnings Per Share No. of Branches No. of Employees 2007
762,194 591,907 340,319 211,146 69,271 28,061 19,034 14.15 1,261 14,079

2008
817,758 624,939 412,987 170,822 81,367 23,001 15,459 11.49 1,276 15,441

2009
944,583 727,465 475,243 217,643 94,142 21,300 17,562 13.05 1,287 16,248

2010
1,035,025 832,152 477,507 301,324 103,762 24,415 17,563 13.05 1,289 16,457

Horizontal Analysis
Years Total Assets Deposits Advances Investments Shareholders' Equity Pre-tax Profit After Tax Profit

2007
100 100 100 100 100 100 100

2008
107.29 105.58 121.35 80.90 117.46 81.97 81.22

2009
123.93 122.90 139.65 103.08 135.90 75.91 92.27

2010
135.80 140.59 140.31 142.71 149.79 87.01 92.27

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Total Assets
160 140 120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
The total assets of NBP fluctuate during all years and they show an increasing trend. The year 2010 represents the highest percentage.

Deposit
160 140 120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
The deposits of NBP show increasing trend during all year. Which are high in 2010 among all years that mean the NBP is being successful in getting customer attraction.

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160 140 120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
The advances made by NBP shows an increasing trend in all years as compare to base year, which means that NBP in keener to advance money to customers.

Investment
160 140 120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
The investments made by NBP fluctuate during all years. The year 2010 is highest among all years.

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Shareholders' Equity
160 140 120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
The Shareholders' Equity of National Bank of Pakistan is increase as compare to base years, which have great impact on NBP goodwill.

Pre-Tax Profit
120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
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The Pre-Tax Profit of NBP shows a deceasing trend as compare to base years. 2009 is lowest profit years among all years.

After-Tax Profit
120 100 80 60 40 20 0 2007 2008 2009 2010

Analysis
The After-Tax Profit of NBP is fluctuate during all years and shows deceasing trend as compare to base year. The is due to the changing in government policies and implementation of new taxes.

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Balance Sheet
Rupees in Millions

ASSESTS
Cash and balances with treasury banks Balances with other banks Lending’s to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets

2007
94,873,249 37,472,832 21,464,600 210,787,868 340,677,100 25,922,979 _ 30,994,965 762,193,593

2008
106,503,756 38,344,608 17,128,032 170,822,491 412,986,865 24,217,655 3204572 44,550,347 817,758,326

2009
115,827,868 28,405,564 19,587,176 217,642,822 475,243,431 25,147,192 3,062,271 59,666,438 944,582,762

2010
115,442,360 30,389,664 23,025,156 301,323,804 477,506,564 26,888,226 6,952,666 53,496,240 103,5024,680

LIBILITIES
Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 7,061,902 10,219,061 10,886,063 40,458,926 591,907,435 624,939,016 _ _ 33,554 5,097,831 30,869,154 25,274 _ 39,656,831 10,621,169 45,278,825 727,464,825 _ 42,629 _ 42,269,623 8,006,631 20,103,591 832,151,888 _ 106,704 _ 46,160,038

645,855,939 715,299,108 825,676,384 906,528,852

Net Assets
PRESENTED BY
Share capital Reserves Unappropriated Profit

116,337,654 102,459,218 11,906,378

128,495,828

Surplus

8,154,319 15,772,124 45,344,188 69,270,631 47,067,023

8,969,751 19,941,047 52,456,204 81,367,002 21,092,216

10,763,702 22,681,707 60,696,510 94,141,919 24,764,459

13,454,628 24,450,244 65,857,438 103,762,310 24,733,518

116,337,654 102,459,218 118,906,378 128,495,828 52

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Income Statement
Rupees in Millions

2007
Markup/return/interest earned Markup/return/interest expensed 50,569,481 16,940,011 33,629,470 4,723,084 -40,248 _ 39,899 4,722,735 28,906,735

2008
60,942,798 23,884,768 37,058,030 10,593,565 373,249 4,000 _ 10,970,814 26,087,216

2009

2010

77,947,697 88,472,134 40,489,649 45,250,476 37,458,048 43,221,658 11,043,469 7,011,046 605,629 20,237 _ 11,669,335 2,954,678 3,965 _ 9,969,689

Net markup/interest income
Provisions against non-performing advances Provision for/(reversal of) diminution in the value of investments Provision against off balance sheet obligations Bad debts written off directly

Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME
Fee, Commission & brokerage income Dividend income Income from dealing in foreign currencies Gain on sale & redemption of securities-net Unrealized gain/ (loss) on revaluation of investments classified as held for trading Other income

25,788,713 33,251,969

6,781,683 3,263,246 1,042,827 2,341,690 -31,964 147,363 13,544,845 42,451,580

7,925,370 2,878,932 3,969,057 395,427 1,707 1,245,369 16,415,862 42,503,078

8,930,391 1,920,336 3,028,165 4,591,894 2,355 552,216

9,631,579 1,099,493 2,211,139 2,512,363 6,730 21,171,336

Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES
Administration expenses Other provisions written off Other charges

19,025,357 17,632,640 44,814,070 50,884,609

14,205,911 168,027 17,141 14,391,079 _ 28,060,501 8,311,500

18,171,198 747,521 583,361 19,502,080 _ 23,000,998 11,762,650

22,571,470 26,202,577 620,780 148,026 118,887 321,647 23,513,897 26,469,490 _ _

Total non markup/ Interest expenses
Extra ordinary/unusual items

PROFIT BEFORE TAXATION
Taxation Current

21,300,173 24,415,119 8,871,513 9,835,048

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-Prior years -Deferred

391,497 323,731 9,026,728 19,033,773 32,074,677 _ 39,007 51,147,457

-4,220,242 7,542,408 15,458,590 45,344,188 _ 130,456 60,933,234

-939,256 -999,904 3,738,327 17,561,846 52,456,204 _ 123,934 70,141,984

-4,133,282 -204,3887 6,851,905 17,563,214 60,696,510 _ 117,738 78,377,462

PROFIT AFTER TAXATION
Unappropriated Profit brought forward Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation

Horizontal Analysis
Balance Sheet
ASSESTS
Cash and balances with treasury banks Balances with other banks Lending’s to financial institutions Investments Advances Operating fixed assets Deferred tax assets Other assets

2007
100 100 100 100 100 100 _ 100 100

2008
112.26 102.33 79.80 81.04 121.23 93.42 _ 143.73 107.29

2009
122.09 75.80 91.25 103.25 139.50 97.01 _ 192.50 123.93

2010
121.68 81.10 107.27 142.95 140.16 103.72 _ 172.60 135.80

LIBILITIES
Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets subject to finance lease Deferred tax liabilities Other liabilities 100 100 100 _ 100 _ 100 100 100 54 144.71 371.66 105.58 _ 75.32 _ 128.47 110.75 88.07 150.40 415.93 122.90 _ 127.05 _ 136.93 127.84 10.23 113.38 184.67 140.59 _ 318.01 _ 149.53 140.36 110.45

Net Assets

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PRESENTED BY
Share capital Reserves Unappropriated Profit 100 100 100 100 100 100 110 126.43 115.68 117.46 44.81 88.07 132 143.81 133.86 135.90 52.62 102.21 165 155.02 145.24 149.79 52.55 110.45

Surplus

Analysis
The NBP cash & balance shows an increasing trend in all years. The balances with other banks show a decreasing trend as compare to base year. It is highest in 2008 and lowest in 2009. The lending to financial institutions show a mixed trend and it is increased in 2010. The investment made by bank rapidly increases in 2010 and it was very low in 2008. The advances made by NBP shows an increasing trend and its increase in all years which mean bank is keener to advance money to lenders. The operating fixed assets are highest in 2010 and other assets also increase in all years compare with base year. The liabilities side of NBP shows a great increase in liabilities, which are rapidly increase in borrowings from lenders and bill payable that means the bank is. The share capital of NBP shows an increasing trend in all years. The increase in share 'capital during all years indicates share holder's concern toward bank and efficient bank's management policies to obtain by trading stocks. The reserves, unappropriated profit and surplus of NBP also shows an increasing trend as compare to base year

Income Statement

2007
Markup/return/interest earned Markup/return/interest expensed 100 100

2008
120.51 141

2009
154.14 239.02

2010
174.95 267.12

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Net markup/interest income
Provisions against non-performing advances Provision for/(reversal of) diminution in the value of investments Provision against off balance sheet obligations Bad debts written off directly

100 100 100 100 100

110 224.29

111.38 233.82 1504.74

128.52 147.44 7341.18 _ 211.10 115.03

_ 232.30 90.25

_ 247.09 89.21

Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME
Fee, Commission & brokerage income Dividend income Income from dealing in foreign currencies Gain on sale & redemption of securities-net Unrealized gain/ (loss) on revaluation of investments classified as held for trading Other income

100

100 100 100 100 100 100 100 100

116.86 88.22 380.61 16.89 5.34 845.10 121.20 100.12

131.68 58.85 290.38 196.09 7.37 374.73 140.46 105.57

142.02 33.69 212.03 107.29 21.05 14366.79 130.18 119.87

Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES
Administration expenses Other provisions written off Other charges

100 100 100 100

127.91 444.81 3403.31 135.52

158.89 369.45 693.58 163.39

184.45 88.10 1876.48 183.93

Total non markup/ Interest expenses
Extra ordinary/unusual items

PROFIT BEFORE TAXATION
Taxation Current -Prior years -Deferred

100 100 100 100 100 100 100 100

81.97 141.52 1303.63 83.56 81.22 141.37 334.44 119.13

75.91 106.74 239.91 308.87 41.41 92.27 163.54 317.72 137.14

87.01 118.33 1055.76 631.35 75.91 92.27 189.23 301.84 153.24

PROFIT AFTER TAXATION
Unappropriated Profit brought forward Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation

Analysis
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The net mark-up/ interest income is increased from 2007 to 2010; it means that the bank income is increased. The net mark-up/ interest income after is also increased in all years. Non mark-up/ interest income increased with a good margin in all years. The administrative expenses are increased which is not a good sign and that should be reduce, The profit after taxation is decreased as compare to base year which is not a good result and that is happen due to increase in expenses and new tax implementation.

Vertical Analysis
Balance Sheet
ASSETS
Cash and balances Balances with other banks Lending’s to financial. institutions Investments Advances Operating fixed assets Deferred tax assets Other assets

2007
12.45 4.92 2.82 27.66 44.70

2008
13.02 4.69 2.09 20.89 50.50 2.96 0.39 5.45 100 1,25 4.95 76.42 0.003 4.85 1.10 2.44 6.41 2.58

2009
12.26 3.01 2.07 23.04 50.31 2.66 0.32 6.32 100 1.12 4.79 77.01 0.005 4.47 1.14 2.40 6.43 2.62

2010
11.15 2.94 2.22 29.11 46.13 2.60 0.67 5.17 100 0.77 1.94 80.40 0.01 4.46 1.30 2.36 6.36 2.39

3.40
4.07 100 0.93 1.43 77.66 0.004 0.67 4.05 1.07 2.07 5.95 6.18

Total LIABILITIES
Bills payable Borrowings from financial institutions Deposits and other accounts Sub-ordinated loans Liabilities against assets Deferred tax liabilities Other liabilities Share capital Reserves Unappropriated profit

Surplus

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Total

100

100

100

100

Analysis
Cash balance increased from 2007 to 2010 with minimum fluctuation, this increase is with respect to total assets. Increase in cash balance means more amount is deposited into bank which is better for the bank. The lending is decreased as compare to previous years. The earning assets increased by the investment decreased in all years expect 2010, with their respective assets. Borrowing from other financial institutions showed a mix trend, and deposits are slightly increased. Share capital and reserves are increased with respective to total assets. Other liabilities showed a slight increased.

Income Statement

2007
Markup/return/interest earned Markup/return/interest expensed 100 33.50 66.50 9.34 -0.08 0.08 9.34 57.16

2008
100 39.19 60.81 17.38

2009
100 51.94 48.06 14.17 0.78 0.03 _ 14.97 33.08

2010
100 51.15 48.85 7.92 3.34 0.04 _ 11.27 37.58

Net markup/interest income
Provisions against non-performing advances Provision for/(reversal of) diminution in the value of investments Provision against off balance sheet obligations Bad debts written off directly

1.01 _ 18.00 42.81

Net markup/interest income after provisions NON MARKUP/ INTEREST INCOME
Fee, Commission & brokerage income Dividend income Income from dealing in foreign currencies Gain on sale & redemption of securities-net Unrealized gain/ (loss) on revaluation of investments classified as held for trading Other income

13.41 6.45 2.06 4.63 -0.06 0.29

13.00 4.72 6.51 0.62 0.03 2.04

11.46 2.46 3.88 5.89 0.005 0.71

10.89 1.24 2.50 2.84 0.01 23.93

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Total non-markup/ Interest income Total income ( Interest + nonInterest) NON MARKUP/ INTERSET EXPENSES
Administration expenses Other provisions written off Other charges

26.78 83.95

26.94 69.74

24.41 57.49

19.93 57.51

28.95 0.33 0.03 28.46

29.82 1.23 0.96 32.00

28.96 0.80 0.15 30.17

29.62 0.17 0.36 29.92

Total non markup/ Interest expenses
Extra ordinary/unusual items

PROFIT BEFORE TAXATION
Taxation Current -Prior years -Deferred

55.46 16.44 0.77 0.64 17.85 37.64 63.43 0.08 101.10

37.74 19.30 -6.92 12.38 25.37 74.40 0.21 99.98

27.33 11.38 -1.20 -1.28 4.80 22.53 67.30 0.16 89.99

27.60 11.12 -4.67 -2.31 7.74 19.85 68.61 0.13 88.59

PROFIT AFTER TAXATION
Unappropriated Profit brought forward Transfer from surplus on revaluation of fixed assets on account of incremental depreciation Profit available for appropriation

Analysis
The net marl-up/ interest income is declining. Net mark-up/ interest income is also declining with respect to sales. Administrative expenses are declining as a percentage of sales. This may be because of very good control over costs and deliberate attempt to reduce expenses. Profit after taxation is deceased compare to all previous years.

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Ratios Analysis
Profitability ratios
Every firm is most concern with its profitability. Any bank depends on its ability to earn an appropriate return on its assets and capital. Good earnings performance enables a bank to remain in competitive position and increase or decrease in market funds. Profitability ratios relate profit to sales and investments. These ratios indicate the firm's overall effectiveness of operations and how well firm utilized its resources ingenerating profit and shareholder value.

Net Profit Margin
Net profit margin measures the percentage of revenue remaining after all cost and expense including interest and taxes have been deducted. Formula=net profit after tax/interest earned

2007 Years Ratio% 37.64

2008 25.37

2009 22.53

2010 19.85

Analysis
Net profit margin showed a negative trend after 2007. The percentage is gradually decreased in 2008, 2009 and 2010. The net profit margin is on its lowest level at the end of 2010 as it indicates a percentage of 19.85%. The reason of this decline is current global economic conditions and current political and terrorist movements in Pakistan.

Gross Profit Margin
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Gross profit margin ratio is used to measures the profitability of a bank's activities. It indicates the relationship between gross profit and interest earned. A high ratio indicates that a bank can make reasonable profit. Formula= gross profit/interest earned

2007 Years Ratio% 66.50

2008 60.81

2009 48.06

2010 48.85

Analysis
The year 2007 has been an outstanding year with bank recorded the highest profit. But it decreased gradually after that. The gross profit is 48.08% in 2009 the lowest percentage among all years.

Assets Turnover
This ratio is useful to determine the amount of revenue that is generated from each rupee of assets. The Banks with low profit margins tend to have high asset turnover, those with high profit margin have low asset turnover. Formula= net sales/total assets

2007 Years Ratio% 6.63

2008 7.45

2009 8.25

2010 8.55

Analysis
The assets turnover increased a compare to base year which mean that the NBP has generated maximum revenue by utilizing their assets. The year 2010 is the highest year which is 8.55 %.

Return on Capital Fund
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This ratio relates the net profits to the amount of capital funds that have been employed in making profit. Formula=net markup/capital funds

Years Ratio

2007 4.12

2008 4.13

2009 3.48

2010 3.21

Analysis
Return on Capital fund ratio showed a smooth trend. That mean the bank has deployed it capital fund to the best to generate profit. 2008 is an outstanding year which is showing 4.13.

Return on Investment
This ratio indicates the profit earned on the invested capital. It measures the earnings on investment and indicates how well the firm utilizes it asset base. Formula=net income after taxes/total assets

Years 2007 Ratio 0.025

2008 0.19

2009 0.023

2010 0.017

Analysis
Return on investment ratio showed a mix trend. The years related to base year are slightly decreasing which means that the NBP is getting lower return on their invested capital. It is because of the economic instability.

Return on Deposits
This ratio indicates to what extent deposits which represents funds mobilization on the part of bank contribute towards income generation. Formula=net income before taxes/total deposits 62

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Years 2007 Ratio 0.047

2008 0.037

2009 0.029

2010 0.030

Analysis
Return on deposit ratio showed a deceasing trend as compare to base year, which mean that the NBP is not using its deposit to its best extent nor has appropriate deposits.

Liquidity Ratios
The bank ability not only to meet possible deposit withdrawals but also to provide for the legitimate need of the economy as well.

Current Ratio
Current ratio measures the current adequacy of company's current assets to meet its current obligations. It must be greater than 1. If it is less than 1, the company has more liabilities then assets. Formula=current assets/current liabilities

Years 2007 Ratio 1.00

2008 1.12

2009 1.41

2010 1.16

Analysis
The current ratio increased as compare to base year, because all years' ratios are greater than 1 which is a good trend. This means that the bank has great ability and sufficient assets to meet their liabilities. 2009 is highest year.

Cash Ratio

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This ratio shows that the cash is enough for payment of liabilities or not. A high cash ratio indicates that the firm is not using its cash to its best advantage. Cash should be put to work in the operations of the company. Formula=cash/current liabilities

Years 2007 Ratio 3.07

2008 2.69

2009 2.74

2010 2.50

Analysis
The cash ratio moved downward as compare to base year, which is a good trend. That means the bank as enough cash to pay their liabilities and cash mobilization is sufficiently used.

It demonstrate the degree to which bank has already used up its available resources to accommodate the credit needs of its customers. Formula=advances/total deposits 2007 Years Ratio% 57.56 2008 66.08 2009 65.33 2010 57.38

Analysis
Advance to deposit ratio showed a increasing trend related to base year, that mean the bank is using its resource to the best extend to accommodate the credit need of customers. 2008 is a excellent year.

Working Capital
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The working capital of a business is an indication of the short-run ability to meet its liabilities of the business. The working capital should be compared with past amounts to determine if working capital is reasonable. Formula=current assets-current liabilities

Years 2007 Ratio 125811

2008 4893516

2009 17396815

2010 7336202

Analysis
Working capital of National Bank of Pakistan gradually increased which is a good indication that means the bank has maximum availability of assets and has great shortterm ability to meet its liabilities.

Debt Ratios
The ratios give a general idea of the company's overall debt load as well as its mix of equity and debt. Debts ratios can be used to determine the overall level of financial risk a company and its shareholder face. The greater the amount of debt the greater the financial risk of firm.

Debt to Equity Ratio
This ratio determines the entity's long-term debt paying ability. This computation compares the total debt with the total shareholder's equity. It also determines how well creditors are protected in case of insolvency. Formula= total liabilities/total shareholder's equity

Years 2007 Ratio 79.20

2008 79.75

2009 76.71

2010 67.38

Analysis
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NBP debt to equity ratio showed a mix trend, 2010 is a lowest year among all, which is not good indication. Other then that the ratio is increased as compare to base year which means the bank a good ability to pay long-term debt and it creditors are protected in case of insolvency.

Interest Coverage Ratio
Formula=earnings before interest & taxes/ interest expense

Years 2007 Ratio 1.64

2008 1.76

2009 1.78

2010 1.89

Analysis
Interest coverage ratio showed an increasing trend, which means the bank has higher profit as compare to it expanse. 2010 is an outstanding year.

Loan Loss Coverage Ratio
Bank uses the loan-loss coverage ratio to determine the quality of its assets and how well it protects itself from losses. The higher the ratio, the better the bank is handing itself in regards to loans. Formula=provision against non-performance loans and advances/profit or loss before tax

Years 2007 Ratio 0.17

2008 0.46

2009 0.52

2010 0.29

Analysis
Loan loss coverage ratio increased as compare to base year, which means that the bank has higher assets available and recourses to protect it from losses. 2009 is higher among all years.

Operating Performance Ratios
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These ratio identities how well a company turns its assets into revenue as well as how efficiently a company converts its sales into cash, and to what extent company is using its resources to generate sale and to increase shareholder value. The better these ratios are, the better it is for shareholders.

Fixed Assets Turnover
This ratio measures the productivity of a company fixed assets with respect to generating revenue. This ratio is designed to determine the efficiency of a company in managing these assets.

Formula=revenue/operating fixed assets

Years 2007 Ratio 1.95

2008 2.52

2009 3.10

2010 3.29

Analysis
Fixed assets turnover ratios showed a increasing trend as compare to base year, which means that the bank is using best of it fixed assets and efficiently using them to generate revenue.

Revenue per Employee
This indicator simply measures the amount of rupees sales or revenue, generated per employee. The higher the rupee figures the better Formula= revenue/ number of employees

Years 2007 Ratio 3591.84

2008 3946.82

2009 4797.37

2010 5375.95

Analysis
Revenues per employee increased as compare to base year that means the every employee is performing his best to generate revenue for the bank and is beneficial for the bank. 67

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