Money & Banking Report on

Submitted To: Sir Rao Akmal Ali

Submitted By: Zeshan Kashir (MC-2972) Shafiq –Ur –Rehman (MC-2958)

FINANCIAL ANALYSIS OF MBL

Horizontal Analysis (Balance Sheet) Meezan Bank Limited

Balance Sheet As on 31st

December

Items 2015 20142015-2014/2014

Cash and balances with treasury banks 43685636 29728764 0.64Balances with other banks 11175060 5501077 1.03Lending’s to financial institutions 107474422 90766297 0.87Investments – net 77909951 114089252 -0.32Islamic financing and related assets 207568823 175711942 0.18Operating fixed assets 8056743 6273239 0.28Other assets – net 13979299 14624233 -0.04Total Assets 531849934 437510268 0.21 Bills payable 6560324 5619826 0.16Borrowings 13609551 15465418 -0.12Deposits and other accounts 471820959 380421569 0.24Sub–ordinate loan - -Liabilities against assets subject to finance lease - -Deferred tax liabilities – net 393121 -Other liabilities 13118869 12113125 0.08Total Liabilities 505502824 413619938 0.18   Net assets 26347110 23890330 0.10 Represented by:Share capital 10027379 10027379 0Reserves 8587363 7288754 0.17Inappropriate profit 6942042 5958587 0.16  25556784 23274720 0.09Surplus on revaluation of assets – net of tax 790326 615610 0.28  26347110 23890330 0.10

Meezan Bank Limited

Balance SheetAs on 31st December

Assets 2015Vertical 2014

vertical

         Cash and balances with treasury banks 43685636 0.08 29728764 0.06Balances with other banks 11175060 0.02 5501077 0.01Lending’s to financial institutions 107474422 0.32 90766297 0.20Investments – net 77909951 0.14 114089252 0.26Advances – net 207568823 0.39 175711942 0.40Operating fixed assets 8056743 0.015 6273239 0.01Other assets – net 13979299 0.026 14624233 0.03Total Assets 531849934 1 437510268 1 Bills payable 6560324 0.012 5619826 0.01Borrowings 13609551 0.026 15465418 0.03Deposits and other accounts 471820959 0.933 380421569 0.86Sub–ordinated loan - -Liabilities against assets subject to finance lease - -Deferred tax liabilities – net 393121 0.0007 -Other liabilities 13118869 0.025 12113125 0.02Total Liabilities 505502824 0.95 413619938 0.94 

     Represented by:    Share capital 10027379 0.01 10027379 002Reserves 8587363 0.05 7288754 0.016Inappropriate profit 6942042 0.05 5958587 0.013  25556784 0.11 23274720 0.053Surplus on revaluation of assets – net of tax 790326 0.02 615610 0.0014

  26347110 100% 23890330 100%

Vertical Analysis of Balance Sheet

Horizontal Analysis of income statement

Meezan Bank Limited

Profit and Loss Account

As on 31st December

  2015 2014(2015- 2014)/2014

Profit / return earned on Islamic financings, investments and placements

33,113,741

28,803,059 0.14

Profit on deposit and other dues expended14,897,149

15,440,250

0.03

Net spread earned18,216,592

13,362,809 0.36

Provision against non-performing Islamic financing and related assets – net 425,908 545,764 -0.21Provision / (reversal of provision) against diminution in the value of investment 121,093

(83,857) 2.4

Reversal of provision against amounts due from financial institutions Bad debts written off directly - - -

563174 466504 0.20

Net spread after provision 1765341812,896,305 0.36

Other income

Fee, commission and brokerage income1,987,212

1,569,327 0.26

Dividend income 628,661 283,633 1.21

Income from dealing in foreign currencies1,471,337

1,626,363 -0.095

Gain on sale of securities – net 342,1361,148,499 -0.70

Other income 167,374 127,062 0.31

Total other income4,596,720

4,754,884 -0.03

Other expenses22,250,138

17,651,189 0.26

Administrative expenses13,560,648

10,459,934 0.29

Other provision – net 59,152 96,288 -0.38Other charges 4,067 49,433 -0.91Workers welfare fund 175,018 147,000 0.19

Total other expenses13,798,885

10,752,655 0.28

Extra /unusual items 84512536,898,534 0.22

Profit before taxation 8,451,253

6,898,534 0.22

40,422,043 35,424,921 0.144Inappropriate profit brought forwardTaxation 40,599,672 35,460,709 0.144  64,924,428 56,956,047 0.139

Profit after taxation 5,022,509

4,570,086 0.09

Basic and diluted earnings per share – after tax 5.01 4.56 0.45

Vertical Analysis of income statement Meezan Bank Limited

Profit and Loss Account

As on 31st December

  2015 vertical 2014 verticalProfit / return earned on Islamic financings, investments and placements

33,113,741 0.85

28,803,059 0.85

Profit on deposit and other dues expended14,897,149 0.37

15,440,250 0.35

Net spread earned 18,216,5 0.47 18,216,5 0.49

92 92Provision against non-performing Islamic financing and related assets – net 425,908 -0.003 545,764

-0.00008

Provision / (reversal of provision) against diminution in the value of investment 121,093 -0.012 83,857) -0.037Bad debts written off directly -

563174 -0.015 466504 -0.037Net spread after provision

17653418 0.4912,896,305 0.53

Other income

Fee, commission and brokerage income1,987,21

2 0.0791,569,327 0.088

Dividend income 628,661 0.011 283,633 0.012

Income from dealing in foreign currencies1,471,337 0.015

1,626,363 0.012

Gain on sale of securities – net 342,136 0.0231,148,499 0.027

Other income 167,374 0.017 127,062 0.005

Total other income4,596,720 0.14

4,754,884 0.14

58,397,042 0.64 51,874,484 0.68Total other expensesAdministrative expenses 20,611,649 0.22 18,709,969 0.24Other provision – net 76,935 0.0008 (52,285) -0.0006Other charges 979,011 0.010 928,595 0.012

21,667,595 0.23 19,586,279 0.25Workers welfare fund 36,729,447 0.40 32,288,205 0.42Total other expenses 12,404,691 0.13 10,792,867 0.14Extra /unusual items 24,324,756 0.268 21,495,338 0.28Inappropriate profit brought forward 40,422,043 0.445 35,424,921 0.46

47,629 0.0005 35,788 0.0004  Taxation 40,599,672 0.447 35,460,709 0.465Profit after taxation 64,924,428 0.715 56,956,047 0.747Basic and diluted earnings per share – after tax 21.85 19.31

References

MBL Brochures

http://en.wikipedia.org/wiki/Economy_of_Pakistan. (n.d.).

http://en.wikipedia.org/wiki/Meezan_Islamic premier _Bank. (n.d.).

Annual Report