Ratio Analysis
* Financial Analysis
No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah wants to become a premier banking institution and to satisfy its customers, it itself needs to become a profitable organization, that not only has growth in profits, increase its assets but also provide its shareholders with the maximum return so that they are also satisfied. * Operational Result
Profit Comparison for 2010 & 2011 Description | 2010 | 2011 | | Rupees in’000 | Profit before provisions and taxes | 2,965,588 | 3,263,635 | Provisions | (402,298) | (697,960) | Profit before taxation | 2,563,290 | 2,565,945 | Taxation | (861,196) | (803,245) | Profit after taxations | 1,702,094 | 1,762,691 | Earning per share | Rs. 3.92 | Rs 3.86 |
Source: Bank Alfalah Annual Report 2011 Profit after taxation for the year 2011 is Rs 1,762,691, which is just an increase of 3.5%, however earning per share, a ratio that is closely looked over by the shareholders of a company decreased from Rs. 3.92 to Rs. 3.86. The major reason for this decrease in this ratio is mainly the small increase in profits before taxation, increase in provisions and finally, the increase in share capital of Rs. 2 million from the past year.
Figure [ 2 ]: Profit figures for the past three years (in million)
Source: Bank Alfalah Annual Report 2011
As shown in Figure 2, profits for Bank Alfalah have been growing from 2005 to 2008, after which they declined, however they have again shown an upward trend for the past two years, which is favorable. * Balance Sheet Results
The total assets for 2011, amounted to Rs.275,685,541 (‘000), advances of the bank, which include the loan and other services that the bank receives interest on, had the greatest share of Rs. 149,999,325 (‘000), followed by investments made by the bank, for Rs. 56,502,210 (‘000).
The total liabilities for the year 2011 amounted to Rs.
No company can remain in business if it cannot sustain and grow its profits and banks are no exemption. If Bank Alfalah wants to become a premier banking institution and to satisfy its customers, it itself needs to become a profitable organization, that not only has growth in profits, increase its assets but also provide its shareholders with the maximum return so that they are also satisfied. * Operational Result
Profit Comparison for 2010 & 2011 Description | 2010 | 2011 | | Rupees in’000 | Profit before provisions and taxes | 2,965,588 | 3,263,635 | Provisions | (402,298) | (697,960) | Profit before taxation | 2,563,290 | 2,565,945 | Taxation | (861,196) | (803,245) | Profit after taxations | 1,702,094 | 1,762,691 | Earning per share | Rs. 3.92 | Rs 3.86 |
Source: Bank Alfalah Annual Report 2011 Profit after taxation for the year 2011 is Rs 1,762,691, which is just an increase of 3.5%, however earning per share, a ratio that is closely looked over by the shareholders of a company decreased from Rs. 3.92 to Rs. 3.86. The major reason for this decrease in this ratio is mainly the small increase in profits before taxation, increase in provisions and finally, the increase in share capital of Rs. 2 million from the past year.
Figure [ 2 ]: Profit figures for the past three years (in million)
Source: Bank Alfalah Annual Report 2011
As shown in Figure 2, profits for Bank Alfalah have been growing from 2005 to 2008, after which they declined, however they have again shown an upward trend for the past two years, which is favorable. * Balance Sheet Results
The total assets for 2011, amounted to Rs.275,685,541 (‘000), advances of the bank, which include the loan and other services that the bank receives interest on, had the greatest share of Rs. 149,999,325 (‘000), followed by investments made by the bank, for Rs. 56,502,210 (‘000).
The total liabilities for the year 2011 amounted to Rs.