2. MBA-Finance

3. Presentation Allied Bank Ltd.

4. Brief Introduction of the Organization
ABL was established in Lahore before independence in
It is one of the largest banks in Pakistan now with more than 800 Branches in over 300 cities.
It is engaged in Commercial & Retail Banking and related services domestically and overseas.
The bank leads the way by having the largest network of 560 ATM’s in more than 145 cities and towns across Pakistan.

5. Competitors: Following are the competitors of Allied Bank Ltd.
United Bank Ltd.
Habib Bank Ltd.
National Bank Ltd.
Muslim Commercial Bank Ltd.
Bank Al-Falah
Meezan Bank Ltd.

6. Business volume.
Business volume of Allied Bank Ltd as on 31st December 2010n is as follows. (All amounts are in Million Rupees)
Total Assets 449,
Share Capital 7,
Total Equity 35,
Total Sales 44,
Net Profit 12,

7. Hierarchy Chart: President Senior Executive Vice President
Assistant Vice President
Grade I Officer
Grade II Officer
Grade III Officer

8. Training Program
I did my internship at Allied Bank Chowk Phullarwan from 04 May 2011 till 24 June, 2011
The assignments given to me during the session and the tasks done by me are as follows:

9. Customer Service Department
Filling-up the deposit slips
Providing information regarding cheque books and ATM cards.

10. Account Opening Department:
Providing information regarding deferent type of accounts.
Filling up the Account-Opening form.
Issuing cheque books and ATM cards.
Closing an account.

11. Clearing Department: Filling up the deposit slips for the cheques.
Pasting stamps on the cheques to cross the cheques in favor of branch.
Keeping record of cheques sent through clearing.

12. Government Service Department
Making record of utility bills scrolls.
Making payment orders in favor of income tax officer

13. Financial Statements
Balance sheet

15. Profit & Loss Account

17. Cash Flow Statements

20. Ratio analysis
Financial ratios are useful indicators of a firm's performance and financial situation.
With the help of ratio analysis conclusion can be drawn regarding several aspects such as financial health, profitability and operational efficiency of the undertaking.

21. Ratios Analysis Following ratios are covered in ratio analysis:
Liquidity Ratios
Leverage Ratios
Profitability Ratios
Activity Ratios
Market Ratios

22. Liquidity Ratios

23. Current ratio= current assets/current liabilities
Ratio Analysis
Allied Bank Ltd
Current ratio= current assets/current liabilities
2008
2009
2010
Current
Ratio
355,545,756 / 46,849,257
=7.59
405,927,583 / 59,539,316
=6.82
434, /42,672,401
=10.18

24. Working of Current Assets
2008
2009
2010
Cash & balances with treasury banks
23,653,754
26,435,633
31,265,608
Balances with other banks
2,096,779
1,280,443
579,555
Lending to financial institutions
15,793,183
28,122,932
11,488,944
Investments
82,631,118
94,789,492
121,173,409
Advances
212,972,008
237,344,038
253,099,509
Deferred tax assets
1,029,223 -
484,387
Other assets
17,369,691
17,955,045
16,480,372
Total Current Assets
355,545,756
405,927,583
434,571784

25. Working of Current Liabilities
2007
2008
2009
Bills Payable
2,952,490
3,162,429
4,118,791
Borrowings
27,778,151
39,818,532
20,774,450
Sub ordinate loans
2,498,000
5,497,000
5,494,800
Liabilities against assets subject to finance lease -
Deferred tax liabilities
1,871
Other liabilities
13,620,616
11,059,484
12,284,360
Total Liabilities
46,849,257
59,539,316
42,672,401

26. Acid Test Ratio = Liquid Assets / Current Liabilities
Ratio Analysis
Allied Bank Ltd
Acid Test Ratio = Liquid Assets / Current Liabilities
2008
2009
2010
Acid test ratio
124,174,834 / 46,849,257
=2.65
150,628,500 / 59,539,316
=2.52
164,507,516 / 42,672,401
=3.86

27. Working of Liquid Assets
2008
2009
2010
Cash & balances with treasury banks
23,653,754
26,435,633
31,265,608
Balances with other banks
2,096,779
1,280,443
579,555
Lending to financial institutions
15,793,183
28,122,932
11,488,944
Investments
82,631,118
94,789,492
121,173,409
Total
124,174,834
150,628,500
164,507,516

28. Working Capital Ratio:
Ratio Analysis
Allied Bank Ltd
Working Capital Ratio = Current Assets – Current Liabilities
2008
2009
2010
Working Capital Ratio
355,545, ,849,257
=308,696,499
405,927, ,539,316
=346,388,267
434,571, ,672,401
=391,899,383

29. Leverage Ratios

30. Times Interest Earned:
Ratio Analysis
Allied Bank Ltd
Times Interest Earned = EBIT / Total Interest Expense
2008
2009
2010
Times Interest Earned
15,006,838 / 8,885,898
=1.69
20,160,239 / 9,624,119
=2.09
24,153,445 / 11,810,339
2.05

31. Working of EBIT EBIT 2008 2009 2010 PROFIT BEFORE TAXATION 6,120,940
10,536,120
12,343,106
Total non mark up/Interest expenses
8,885,898
9,624,119
11,810,339
Total
15,006,838
20,160,239
24,153,445

32. Debt Ratio = Total Assets / Total Debt
Ratio Analysis
Allied Bank Ltd
Debt Ratio = Total Assets / Total Debt
2008
2009
2010
Debt Ratio
344,324,578 / 366,680,192
=0.94
388,412,482 / 418,374,331
=0.93
413,956,669 / 449,931,526
=0.92

33. Debt / Equity Ratio = Total long term debt / Equity
Ratio Analysis
Allied Bank Ltd
Debt / Equity Ratio = Total long term debt / Equity
2008
2009
2010
Debt / Equity Ratio
344,324,578 / 22,355,614
=15.40
388,412,482 / 29,959,978
=12.96
413,956,669 / 35,974,857
=11.51

34. Debt / Tangible Net Worth Ratio:
Ratio Analysis
Allied Bank Ltd
Debt / Tangible Net Worth Ratio = Total Debt / Tangible Net Worth
2008
2009
2010
Debt / Tangible Net Worth Ratio
344,324,578 / 22,355,614
=15.40
388,412,482 / 29,959,978
=12.96
413,956,669 / 35,974,857
=11.51

35. Working of Tangible Net Worth
2008
2009
2010
Total Assets
366,680,192
418,374,331
449,931,526
Less: Total Liabilities
344,324,578
388,414,353
413,956,669
22,355,614
29,959,978
35,974,857

36. Total Capitalization Ratio:
Ratio Analysis
Allied Bank Ltd
Total capitalization ratio = Long term debt / (Long term debt + Equity)
2008
2009
2010
Total capitalization ratio
297,475,321 / 319,830,935
=0.93
328,875,037 / 358,835,015
=0.92
371,284,268 / 407,259,125
=0.91

37. Profitability Ratios

38. Net Profit Margin = (Net profit / net sales) × 100
Ratio Analysis
Allied Bank Ltd
Net Profit Margin = (Net profit / net sales) × 100
2008
2009
2010
Net Profit Margin
41,56,686 / 30,570,540
=13.60%
7,122,167 / 41,121,503
=17.32%
8,225,332 / 44,992,696
=18.28%

39. Return on Assets = (Net profit / Total assets) × 100
Ratio Analysis
Allied Bank Ltd
Return on Assets = (Net profit / Total assets) × 100
2008
2009
2010
Return on Assets
4,156,686 / 366,680,192
=1.13%
7,122,167 / 418,374,331
=1.70%
8,225,332 / 449,931,526
=1.83%

40. DuPont Return on Assets:
Ratio Analysis
Allied Bank Ltd
DuPont Return on Assets = (Net Income / Sale) × (Sale / Total Assets)
2008
2009
2010
DuPont Return on Assets /
=1.13% /
=1.70% /
=1.83%

41. Operating Income Margin:
Ratio Analysis
Allied Bank Ltd
Operating income margin = (Operating income / Net sales) × 100
2008
2009
2010
Operating income margin
2,764,820 / 30,570,540
=9.04%
4,778,702 / 41,121,503
=11.62%
7,240,072 / 44,992,696
=16.09%

42. Return on Operating Assets:
Ratio Analysis
Allied Bank Ltd
Return on operating assets = Net profit / Net operating assets
2008
2009
2010
Return on operating assets
4,156,686 / 11,134,436
=37%
7,122,167 / 12,446,748
=57%
8,225,332 / 15,359,742
=54%

43. Return on Total Equity:
Ratio Analysis
Allied Bank Ltd
ROE = Net profit after tax / shareholders equity
2008
2009
2010
Return on Total Equity
4,156,686 / 22,355,614
=18%
7,122,167 / 29,959,978
=23%
8,225,332 / 35,974,857

44. Gross Profit Margin = (Gross Profit / Net Sales) × 100
Ratio Analysis
Allied Bank Ltd
Gross Profit Margin = (Gross Profit / Net Sales) × 100
2008
2009
2010
Gross Profit Margin
14,010,734 / 30,570,540
=45.83%
18,699,809 / 41,121,503
=45.47%
22,565,044 / 44,992,696
=50.15%

45. Activity Ratios

46. Total Assets Turnover Ratio:
Ratio Analysis
Allied Bank Ltd
Total assets turnover ratio = Net sales / Total assets
2008
2009
2010
Total assets turnover ratio
30,570,540 / 366,680,192
=8.34%
41,121,503 / 418,374,331
=9.82%
44,992,696 / 449,931,526
=9.99%

47. Fixed Assets Turnover Ratio:
Ratio Analysis
Allied Bank Ltd
Fixed assets turnover ratio = Net sales / Fixed assets
2008
2009
2010
Fixed assets turnover ratio
30,570,540 / 11,134,436
=2.75
41,121,503 / 12,446,748
=3.30
44,992,696 / 15,359,742
=2.93

48. Market Ratios

49. Dividend per share = Dividend amount / number of common shares
Ratio Analysis
Allied Bank Ltd
Dividend per share = Dividend amount / number of common shares
2008
2009
2010
Dividend per share
1,615,913 / 646,365
=2.50
2,844,004 / 711,001
=4.00
3,127,504 / 781,876

50. Earning Per Share: Allied Bank Ltd Ratio Analysis
EPS ratio = (Net profit after tax – preference dividend) / No. of common shares
2008
2009
2010
EPS ratio
4,156,686 / 646,365
=6.43
7,122,167 / 711,001
=10.02
8,225,332 / 782,100
=10.52

51. SWOT ANALYSIS

52. Strengths: Strong financial basis
Highly capable and committed management
Fully computerized and online network

53. Weaknesses: Non-mobilization of authority
Slow and lengthy working process
Heavy load of work on employees

54. Opportunities: Global market New domestic markets
Expansion of branch and ATM network
Advertisement

55. Threats: New entrants Contraction of markets
Bargaining power of customers

56. Conclusion: Highly capable management.
Fully computerized and online network of branches.
Allied Bank adopted bottom to top management style.
ABL has huge amount in current deposits.
Investments have raise in 2008 and also improved in 2009 contrast to year 2008
Increasing trend in net income.
ABL is in the strong position to pay off its short term liabilities

57. Recommendations
The productivity can be increased by providing proper equipment to branches.
IT problems can be solved by hiring new efficient IT staff.
More customers can be attracted by proper advertisement.
Business can be enhanced by exploring new business areas and opening branches there.
Bad debts can be decreased by lending after careful evaluation of borrower credibility.
Gross Profit margin can be increased by cutting off un-necessary expenditures.

58. Thank you