Established in Lahore in 1942, Allied Bank Limited is one of the largest banks operating in Pakistan with more than 700 branches located in almost 300 cities and towns.
The Bank offers a full range of retail, commercial and corporate banking services with a focus on service delivery through technology. It has the largest data communication network with all its branches offering real-time online banking.
Allied Bank was the first Muslim bank, to have been established on the territory that eventually became Pakistan. Established in December 1942 as the Australasia Bank at Lahore with a paid-up share capital of Rs 0.12 million, the Bank attracted deposits, equivalent to Rs 0.431 million in its first eighteen months of business. Today, the bank has one of the largest deposit and asset bases among the banks in Pakistan
RECENT PERFORMANCE, HY07, 6 MONTHS:
Despite intense competition in the banking sector, Allied Bank achieved growth in all its key business areas. Profit after tax for the first half increased by 22% over the same period of last year to Rs 2.75 billion (annualized EPS of Rs 10.22). The operating profit also witnessed a growth of 14% over corresponding period of last year to reach Rs 4.62 billion owing largely to an improved net interest income, fee, commission, brokerage income and capital gains on securities. Mark-up income grew to Rs 10.61 billion or 31% during the first half year of 2007 primarily because of higher loan volume and investment in government papers, particularly Market Treasury Bills and Pakistan Investment Bonds. Improved loan pricing and yield on investments complemented this. However, this increase was offset partially by a 67% rise in cost of funds over corresponding period of 2006 because of greater deposits and higher bank borrowing.
The growth registered by the bank during this period fuelled the appreciation in the bank's equity by 11% reaching the level of Rs 19.59 billion and a 17% increase in the asset base of the company amounting to Rs 294.76 billion. The growth also manifested itself in greater deposits and hence larger investments. On the back of such impressive figures, the bank has announced an interim cash dividend of 15% for all its shareholders.
ANALYSIS OF FINANCIAL PERFORMANCE (DECEMBER '03-DECEMBER'06): The earnings profile of the bank shows marked improvement over the period under consideration. The ratios have tremendously risen from their negative values to their higher positive values. These have been mainly achieved through considerable improvements in equity and profits of the bank. The bank mainly focused on growth of revenues in every business segment across the Bank, kept costs under control, and benefited from rise in the interest rates. Therefore, its net profit increased substantially. And the increase in the profitability was also diversified.
The ROA is an indicator of the profitability of the company. The higher the ratio, the greater is the return on the assets. ROA of Allied Bank decreased in 2004 from its level in 2003 (0.30 in 2003 against 0.12 in 2004). The decline in 2004 was mainly attributed to an almost fifty percent decline in the profit after tax. Although profit before tax and provisions increased from Rs 1,824 million in 2003 to Rs 2,051 million in 2004 ie 12 percent against 2004. However, provisions for non-performing assets increased from Rs 870 million to Rs 1,594 million.
This major increase in provisioning was the result of new requirements of Prudential Regulations of SBP with respect to discounting the value of collaterals. Consequently, profit after-provision-after-tax decreased from Rs 386 million in 2003 to Rs 168 million in 2004. However, beginning from a positive note, the ROA increased markedly in 2005 and hence continued into 2006. The Bank earned the highest profit after tax in its over 60 years' of history (till then) in 2005. The profit after tax increased from Rs 192 million in 2004 to Rs 3,033 million in 2005, a net increase of 1,482%.
This stellar growth resulted from improvement in interest margins, increase in advances to deposits ratio as the bank was able to book quality advances due to increased equity and per party limit and an increase in the non-interest income due to a greater volume of foreign trade and business transacted. In 2006, the bank achieved another milestone by recording an after tax profit of Rs 4,397 million, the highest ever earnings in the Bank's history, depicting a growth of 42% over FY05 profit of Rs 3,090 million.
This increase was attributed to a surge in operating profit before provisions and taxes. The increase in gross advances, backed by significant improvement in yield, resulted in higher mark up / return income. The non-markup income also witnessed an increase due to a rise in core fee and commission income and gain on securities, which increased by 40% and 175% respectively over FY05. The fee, commission and brokerage income increased due to the conclusion of several large corporate deals in the capacity of Lead Arranger and Advisor. Hence, the ROA of the bank in 2006 was 1.98 as compared to 1.75 in 2005.
ROD measures the gain that a company achieves on its deposits. ROD of the bank follows the same trend as the ROA, showing a dip in 2004 and then gaining momentum in 2005 that continued in to 2006. Similar reasons as above are responsible for this trend. As the profit after tax declined considerably in 2004, the ROD also registered a downfall. However, a tremendous growth in the earnings in 2005 pulled up the ratio markedly. The earnings continued to grow in 2006. Hence, the ratio was recorded at 2.39 in 2006 as opposed to 2.10 in 2005, an increase of approximately 13.5%. Meanwhile the deposit base of the bank has always increased but not as fast as the profit.
ROE of a company indicates the overall efficiency of the firm in managing its total investments in assets and returns to shareholders. As the figure illustrates, ROE was negative in the years 2003 and 2004 due negative equity. In 2004, the ratio further deteriorated due to extremely lower profits despite improvement in the equity position. In 2003, the total liabilities of the bank exceeded the total assets, placing the bank in a dangerous position that could have even led to its bankruptcy.
However, in 2004 State Bank of Pakistan initiated the process of Reconstruction of Allied Bank of Pakistan for its recapitalization under which SBP invited Expression of Interests from all Banks, Development Financial Institutions, Investment Banks and Leasing Companies to bid for majority stake under a restructuring plan, which envisaged amalgamation of the buying institution with Allied Bank. Consortium of Ibrahim Leasing and Ibrahim Group offered the highest bid of Rs 14.2 billion. Consequently, recapitalization transaction of the Bank was completed the Group injecting Rs 14.2 billion as equity.
Hence, the position of equity returned to a better side. The ROE of the bank increased phenomenally in 2005 due to enhanced earnings and with equity becoming better year by year. The growth in ROE however occurred at a slower rate as compared to 2005 mainly due to a slower increase in the earnings whereas the equity base of the bank continued to increase in similar proportions as in the previous years. The ratio stood at 28.63% in 2006 as opposed to 25.98% in 2005, an increase of about 10%.
Asset Quality has greatly improved over the years, manifesting the fact that the bank maintains its credit risk tactfully and has well diversified credit portfolio that reduces large exposures tremendously. The bank's asset quality ratios have shown a remarkable downward trend, which translates into enhanced asset quality.
The non-performing loans of a bank are the unexpected defaults on loans by its borrowers. The NPLs have witnessed a constant downward trend, which means that the performing advances of the bank have been increasing and the bank is generating greater returns from its loans. The customer's default risk shows considerable abatement throughout the years which in turn points out to prudent risk management policies and strong internal control implemented by the bank. Hence, Non Performing Loans (NPLs) saw a noticeable net decline of 17% to reach at Rs 10.5 billion in 2006 from last year's Rs 12.7 billion.
Provisions to NPLs have remained low throughout the years except a 146% increase in 2004. This was because the bank changed the method of computation of provision for non-performing advances in order to comply with the requirements of the revised Prudential Regulations, issued by the State Bank of Pakistan and may be because it sensed a slightly higher credit risk. The downward trend in the ratio can be attributed to declining non-performing loans of the bank, which consequently require less coverage comparatively. This ratio stood at 0.03 in 2006 as opposed to 0.06 in 2005, posting an increase of about 71% due to an increase in the NPL provisions to ensure adequate loan loss coverage.
The NPL to advances ratio shows steep declines in each of the years up to 2006. The NPLs have been declining whereas the advances of the bank have been increasing throughout. The advances portfolio grew by 27% to Rs 151.7 billion in 2006 from Rs 120 billion for last year, due to aggressive big ticket quality corporate lending and also due to aggressive efforts made towards growing private sector and concurrent effective credit risk management. The bank also remained watchful of the impact on capital adequacy. Corporate loans are the largest component of Allied's advances portfolio. At year-end 2006, corporate loans amounted to Rs 115.4 billion, growing significantly by 45% from last year's Rs 79.6 billion. This strong growth was well diversified among various segments as well as in different tenors. Such effects were responsible for the ratio to be recorded at 0.07 in 2006 against 0.11 in 2006, posting a decline of about 36%.
The market value of the bank continues to remain high. The bank was listed on the stock exchange only in 2005. Therefore, 2003 and 2004 show no values for the market value ratios.
The price to earnings ratio of the bank soared at 12.56 in 2005, registering a decline of 24% in 2006 to 9.54. Firstly, the earnings per share of the bank registered a phenomenal 42% jump in 2006 as compared to 2005 (Rs 9.80 against Rs 6.89) being derived directly from the tremendous increase in the profit of the bank. The interest income increased despite rising costs of deposits, complemented by a large increase in the non-interest income of the bank. The yield curve of the industry also curved higher that provided an avenue of advantage for the bank. Secondly, the price per share increased from Rs 86.50 to Rs 93.50 in 2006 but this increase (8%) was offset by a greater increase in the earnings per share of the bank (42%). In addition, the number of shares outstanding also increased as the bank announced a stock dividend. Hence, the ratio declined in 2006.
The market value to book value of the bank also registered a decline of about 18% in 2006 (2.37 in 2006 against 2.92 in 2005). However, this ratio did not decline as much as the price to earnings ratio of the bank. The book value of the bank's shares increased and so did the total number of issued shares. The stronger returns to equity and skillful asset and risk management of the bank caused its market value to appreciate in 2006. However, this appreciation was less than the 33% increase in the book value of the shares.
The dividend payout ratios indicate a company's policy about its dividends. The dividend payout ratios of the bank are on the rise. We may say that the bank's expansion process is on its maturity stage and with the bank so well established, it is devoting more and more of its earnings to the shareholders. This concern for the shareholders manifests in the appreciation of the bank's stock.
The shareholders seem extremely satisfied with the bank's performance. Since the bank was listed on the stock exchange in 2005 only, there were no dividends for the years 2003 and 2004. In 2005, the bank declared a cash dividend of Rs 2.50 per share. In 2005, it declared a Rs 2.50 cash dividend and a Rs 2.00 stock dividend, making it a dividend total of Rs 4.50 per share. Hence, we notice a further increase in the ratios in 2006. Although, the market price per share increased in 2006, the dividend per share increased by a humongous 80% as compared to the 8% increase in the market value of the shares. Therefore, the dividend yield of the bank increased further in 2006 to 0.048 as against 0.029 in 2005.
The dividend cover ratio of the bank is measured as the ratio of earnings per share to dividend per share. This ratio shows a peak in 2005 and then a dip in 2006. The earnings per share of the bank increased by 42% over the period 2005-2006 being offset by almost a double increase in the dividend per share of the bank of about 80%. Hence, the dividend cover ratio saw a dip in 2006 to be recorded at a level of 2.18 as against 2.76 in 2005. However, this further provides the evidence that the bank has the policy of accruing more and more of its profits to the shareholders. Also, the issue of bonus shares by a ban would enable it to enhance its capital adequacy and comfortably meet the SBP minimum capital requirement. These steps will strengthen Allied's position in the competitive banking environment.
Debt management of the company has improved considerably over the years especially from their precarious situation experienced in 2003. This improvement has been complemented by an impressive asset management approach.
The debt to equity ratio of the bank shows a steady declining trend over the period under consideration indicating increases in equity and capital to back up the debt of the bank. The bank may be regarded as being extremely safe and well guarded against any credit risks on its part. In addition, it can comfortably meet any increased consumer withdrawal demands. The turning point in the history of bank's debt to equity ratio was a big leap from the negative side in 2003 to the positive side in 2004. The ratio was negative in 2003 owing to a negative equity.
The liabilities of the bank far exceeded the asset base of the bank, placing the bank in a dangerous situation of bankruptcy and default. The major component of bank liabilities in 2003 was its deposits. The advances of the bank amounted to less than 50% of its deposits, an indication that the bank was not able to efficiently use its deposits for loans and hence generate a healthy return. This, coupled with the highest nonperforming loans (for the period 2003-2006), further lowered the return that could be earned from the performing advances of the bank. Hence, the ratio stood at -31.74 in 2003.
However, a 31% increase in assets of the bank more than offset the 18% increase in the liabilities of the bank in 2004 that made equity a positive figure. The recapitalization transaction of the Bank in 2004 led to an injection of Rs 14.2 billion as equity. Since then the ratio has seen a consistent decline in 2005 and then in 2006. The ratio stood at 13.46 as against 13.83 in 2005 due to a 36% increase in equity of the bank as against a 30% in its debt. This major increase in equity has been brought about by a massive growth in the bank's reserves followed by an increase in its unappropriated profits.
Analyzing the deposits times capital ratio of the bank, shows the trend similar to that of the debt to equity ratio for similar reasons as discussed above. The total deposits increased to Rs 206.0 billion from 2005's Rs 161.4 billion, reflecting a growth of 28% with Allied's market share increasing to 6.9%. This milestone was achieved despite stiff competition for deposits mobilization during FY06. Of the deposits in 2006, savings deposits accounted for the majority followed by non-remunerative current account deposits. Customer deposits form the chunk of the deposit base of the bank. Most of the increase in deposits in 2006 occurred in the local currency deposits.
Continuous expansion in Pakistan's economy, growth in per capita income, and rising interest rates for time deposits were the main reasons for the continued increase in the deposits in 2006. However, capital also witnessed a concurrent increase in 2006 due an increase in the reserves, unapproriated profit of the bank (due to commendable growth in its earnings) and the bonus shares issued by the bank in 2006. This increase is welcomed as the company would be better protected against the risk of excessive withdrawals and greater equity coverage is being given to the deposits of the bank. This will further enhance the capital adequacy of the bank. The figure for 2006 was 11.98 and in 2005, it was 12.34.
The Debt to Asset ratio measures the total debt as a percentage of total assets. The ratio of the bank witnessed quite a steep fall from 2003 to 2005 and then a slight decline from 2005 to 2006. This indicated that the asset base of the bank has been increasing at a faster rate than its debt profile. This increase in its assets has been met through an increase in its advances that almost doubled in 2005 from its 2004 level.
The bank has been able to convert its deposits more efficiently in to return generating loans. Moreover, the NPLs of the bank have also been declining which means that the interest generating advances have been increasing. This has undoubtedly translated into higher earnings for the bank. On the other hand, the debt of the bank has been increasing at almost the same rate year by year. Therefore, the ratio has experienced a steep decline. As the advances comprise the chunk of the assets, any major changes in it also bring about a corresponding change in the assets of the bank. Since, the advances of the bank and hence the assets increased at a lesser rate compared to 2004-2005 whereas the liabilities maintained their rate, we notice the slower decline in the ratio in 2006. The deposits of the bank increased a little more than the advances of the bank in 2006. This declining trend stands positive for the bank. It reinforces the fact that Allied can peacefully meet its obligations.
The liquidity ratios are an indicator of an entity's ability to meet its obligations as they become due. Other than customer's deposits, the bank's funding source is the interbank money market. Change in the government monetary policy and market expectations of interest rate are all important factors that can adversely affect Allied's key funding source.
The liquidity ratios of the bank have maintained an upward trend for most of the years. These are a good sign, as the bank possesses more than sufficient amount of liquidity that would enable it to fulfill its obligations as they become due.
The earning asset to assets ratio has maintained almost a consistent pattern, nearly maintaining the same level. If not increasing, the bank has effectively managed its earning assets consistently of all the assets. The major chunk of the earning assets has been the advances, followed by investments and then lendings to financial institutions. Most of the advances have been to the textile sector of duration of up to 1 month. While expanding the advances portfolio, efficient portfolio diversification has been a key consideration of Allied, always.
This diversification has taken into account the volatility of various sectors by placing concentration limits on lending to these sectors, thereby ensuring a diversified advances portfolio. Textile, Cement, Financial Institutions, Agriculture and Transport / Communication are major contributors to the advances portfolio. These sectors have been considered the biggest contributors towards country's GDP as well. The bank has the greatest investments in government securities, followed by in listed companies and then mutual funds.
The government securities (mainly PIBs and T-Bills) are considered liquid and availing less risk. This ratio has been always maintained at around 0.84. In 2005, it was at 0.85 and in 2006, it measured at 0.84. The earning assets and total assets have been increasing by almost similar proportions, hence leading to a consistent ratio. In 2006, the total assets grew by 28% whereas the earning assets grew by 26%, causing the ratio to slightly decrease over 1 year. Nevertheless, the bank is doing an excellent job, not compromising on its returns anyhow.
The advances to deposits ratio has seen a steady increase over 2003-2006. The largest proportion of the deposits goes to the individuals. Though the deposits have been increasing, the advances of the bank have been increasing at a faster pace. This makes it evident that the bank has a greater turnover of advances from its deposits. What is more commendable is the fact that the performing advances of the bank have been increasing steadily, enabling the bank to generate increasingly greater returns on its liabilities. All that, in turn, adds to a better liquidity position of the bank.
Yield on earning assets decreased in 2004 and then saw an increasing pattern then onwards up to 2006. The interest earned grew at a slower rate relative to the earning assets in 2004. Hence, the ratio saw a dip in the concerned year. However, after that in 2005, the interest earned almost doubled pulling up the ratio to a higher level of 0.067. The interest earned again almost doubled in 2006, giving the ratio a push up to its new level of 0.093. The benefit of yield curve escalation, affecting interest-earning assets across the banking industry during the second half of 2006, was significantly offset by the effect of narrower spreads. However, owing to the bank's ongoing efforts to realign its asset portfolio, it was able to achieve a sufficiently high spread during 2006. Hence, a high spread translated into a higher yield for the year 2006.
Cost of funding earning assets followed a similar pattern as yield on earning assets, decreasing in 2004 and then witnessing an increase. A major upsurge of more than 22 percent in low cost deposits that is non-remunerative current and saving deposits was witnessed in 2004. These deposits constituted 84 percent of the total deposits in 2004, leading to a dip in the cost. In 2006, mark up/interest expense increased to Rs 6.8 billion depicting an increase of 236% over FY05. This increase corresponds to the growth in deposits during FY06 coupled with increase in pricing of deposits. Therefore, the ratio in 2006 was recorded at 0.037 as against 0.014 in 2005.
The solvency ratios of the bank have persistently shown an upward trend throughout 2003-2006. This indicates bright prospects of long-term sustainability of the bank. The equity to assets ratio was negative in 2003, after which it increased in the positive. In 2003, the company had recorded a negative equity, its debt burden being bigger than what could have been sustained by its assets. In 2004, the injection in equity made the figure positive, raising the ratio into the positive realm. Since then the trend has continued into after years and in 2006. There was only a minor difference in the value of the ratio for 2005 (6.74) and for 2006 (6.92). This minimal difference owed its existence to a 30% increase in the equity of the bank on one hand, and a 31% increase in the assets on the other.
The equity to deposits ratio followed parallel to equity to assets ratio, negative in 2003 and positive increasing in years after that. The ratio stood at 8.35 in 2006 and 8.10 in 2005. Though the deposits are constantly on the rise, the equity is increasing faster. The equity capital also saw a surge in 2006 as the bank issued bonus shares. A well diversified, increasing equity base would make the bank secure against any run on its deposits.
The earning assets to deposits ratio replicates the trend depicted by the other two solvency ratios of the bank. The ratio shows only a small difference in values of 2006 (100.99) and 2005 (101.91). This minimal increment can be attributed to a 28% increase in the average deposits that countered the increase of 26% in average earning assets. Nevertheless, even if the bank maintains its earning assets to deposits ratio at this level, it is not likely to encounter any major problems in its long term. Such impressive figures assure long-term growth and sustainability.
FUTURE OUTLOOK:
The market scenario will be more challenging as banking industry in Pakistan is currently under a wave of Mergers and Acquisitions through local as well as foreign investors. One reason for the recent surge in bank mergers is Basel Accord II, which is to be implemented from January 2008. Tight monetary policy has started inducing banks to accelerate mobilization of time deposits and offering higher returns to depositors. Some of the banks have already started introducing schemes of higher return on saving accounts, which should improve real return on deposits going forward.
The future prospects the bank certainly seem bright. With its performing advances increasing, healthy profit can surely be expected of the bank. Moreover, its prudent asset management and a diversified credit portfolio will play a big role in enabling it to contend in the scenario of intense competition.
The equity base is likely to see further expansion in the coming years. This will ensure adequate loan coverage for the bank and profitability for its shareholders. The shareholder returns are also likely to go up as the bank is expected to turn out even greater profits. The Allied share is currently trading at Rs 132.25. The share price of the bank has been increasing and such trend of price appreciation is to continue.
In order to strengthen Bank's Tier II capital, as required by the State Bank of Pakistan and to create more room for assets' growth, the Bank has raised Term Finance Certificates amounting to Rs 2.5 billion through Initial Public Offering and Private Placements during the later part of the current year 2007. This would enable the bank to meet its minimum capital requirement and maintain sufficient capital adequacy.
Acknowledging the significant improvement in the bank's strength, JCR-VIS, in July 2006, upgraded the 'Outlook' one notch from last year's 'Stable' to 'Positive' while maintaining medium to long term entity rating at A+ (Single A Plus) and short term rating at A-1+ (Single A One Plus). Such ratings depict good credit quality, capacity for timely payments and strong internal control.
=====================================================================================================
Allied Bank Financials
=====================================================================================================
ALLIED BANK LIMITED
=====================================================================================================
Balance Sheet as at December 31
=====================================================================================================
Year 2003 2004 2005 2006
=====================================================================================================
Assets $ $ $ $
Cash and cash balances with treasury banks 9,443,478 10,842,435 14,742,504 23,039,577
Balances with other banks 1,761,896 1,477,282 3,292,038 1,705,445
Lendings to financial instituitions 15,361,237 16,175,000 5,777,382 19,050,239
Investments 40,734,616 57,262,834 44,830,058 46,953,241
Advances 40,659,158 58,799,702 110,946,972 144,033,634
Other assets 5,758,689 5,946,710 7,180,269 10,161,361
Operating fixed assets 2,596,133 2,548,375 4,720,344 6,445,111
Deferred tax assets 1,200,741 1,155,817 680,093 638,168
117,515,948 154,208,155 192,169,660 252,026,776
-----------------------------------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------------------------------------------
Bills payable 1,772,730 2,534,363 2,448,620 2,278,007
Borrowings from financial institutions 2,664,643 11,894,682 9,693,785 18,410,425
Deposits and other accounts 114,218,082 126,391,752 161,907,491 206,031,324
Sub-ordinated loans 0 0 0 2,500,000
Liabilities against assets
subject to finance leas 0 0 0 0
Other liabilities 2,834,969 3,066,594 5,084,528 5,119,267
Deferred tax liabilities 0 0 0 0
121,490,424 143,887,391 179,134,424 234,339,023
-----------------------------------------------------------------------------------------------------
Net Assets -3,974,476 10,320,764 13,035,236 17,687,753
-----------------------------------------------------------------------------------------------------
Represented by:
Share capital 1,063,156 4,313,156 4,404,642 4,488,642
Share premium 0 10,950,000 4,316,324 0
Reserves 557,876 574,703 1,019,899 6,133,209
Unappropriated profit/Accumulated losses -6,490,139 -6,323,707 1,658,829 5,607,796
-4,869,107 9,514,152 11,399,694 16,229,647
Surplus on revaluation of assets 894,631 806,612 1,635,542 1,458,106
-3,974,476 10,320,764 13,035,236 17,687,753
-----------------------------------------------------------------------------------------------------
Total Assets and Liabilities 117,515,948 154,208,155 192,169,660 252,026,776
-----------------------------------------------------------------------------------------------------
ALLIED BANK LIMITED
-----------------------------------------------------------------------------------------------------
Profit and Loss Account
-----------------------------------------------------------------------------------------------------
Year 2003 2004 2005 2006
-----------------------------------------------------------------------------------------------------
$ $ $ $
-----------------------------------------------------------------------------------------------------
Mark-up/return/ interest earned 4,984,607 5,177,989 9,846,657 17,215,507
Mark-up/return/ interest expensed 1,154,913 771,088 2,024,659 6,793,101
Net mark-up/ interest income 3,829,694 4,406,901 7,821,998 10,422,406
Provision against non performing loans and adv 615,996 1,519,682 413,352 583,305
Provision for diminution -16,931 -26,832 17,014 -14,623
Bad debts written off directly 4,129 44,294 154,359 136,189
603,194 1,537,144 584,725 704,871
Net mark-up/ interest income after provisions 3,226,500 2,869,757 7,237,273 9,717,535
-----------------------------------------------------------------------------------------------------
Non mark-up/ interest income
-----------------------------------------------------------------------------------------------------
Fee, commission and brokerage income 454,784 1,255,153 1,220,362 1,353,888
Dividend income 15,352 14,705 46,146 193,255
Income from trading in government securities 1,074,186 35,688 1,117 0
Income from dealing in foreign currencies 162,151 265,345 250,224 282,285
Income from sale &purchase of securities 124,273 14,008 123,266 376,792
Unrealized loss on revalutaion of investments- 0 68 25,706 -30,180
Other income 312,534 154,682 263,599 273,028
Total non-markup/ interest income 2,143,280 1,739,649 1,930,420 2,449,068
5,369,780 4,609,406 9,167,693 12,166,603
-----------------------------------------------------------------------------------------------------
Non mark-up/ interest expenses
-----------------------------------------------------------------------------------------------------
Administrative expenses 4,247,103 4,088,685 4,252,337 5,290,578
-----------------------------------------------------------------------------------------------------
Provisions against other assets 1,736 150,179 39,828 205,307
Provision against off balance sheet obligations 265,513 -93,427 79,095 2,546
Other charges 8,558 7,009 18,999 7,078
Total non-markup/ interest expenses 4,522,910 4,152,446 4,390,259 5,505,509
846,870 456,960 4,777,434 6,661,094
Reversal on account of
depreciation charges of land 107,189 0 0 0
-----------------------------------------------------------------------------------------------------
Profit before taxation 954,059 456,960 4,777,434 6,661,094
Taxation - current 97,012 158,000 1,331,468 2,215,092
prior years' 209,089 28,000 22,000 0
deferred 262,378 102,690 390,594 48,752
568,479 288,690 1,744,062 2,263,844
-----------------------------------------------------------------------------------------------------
Profit after taxation 385,580 168,270 3,033,372 4,397,250
-----------------------------------------------------------------------------------------------------
Weighted number of ordinary shares 106,315,565 226,192,614 440,484,115 448,864,115
Basic earnings per share - (Rupees) 3.63 0.74 6.89 9.80
=====================================================================================================