Habib Metro Bank Presentation of Bnaking Course

It is about Habib Metro Bank

1. Group members Sarim Ashraf Sharjeel Ahmed Suleman Paracha Zahid Hameed Ahmed Najeeb

2. Profitability Ratio

3. Return On Assets

4. Return On Equity

5. Net Interest Margin

6. Net Non-Interest Margin

7. Net Operating Margin

8. Earning Base

9. Asset Utilization

10. Net Profit Margin

11. Equity Multiplier

12. Yield On Earning Asset

13. Cost Of Borrowing on Int. Bearing Liabilities

14. Spread

15. Expense Control Measure Ratios

16. Interest Expense / Total Assets

17. Interest Expense / Interest Bearing Liabilities

18. Administrative Expense / Total Assets

19. Other Operating Cost / Total Assets

20. Liquidity Risk Ratio

21. Cash and due Deposits with other banks / TA Upward trend from 2017 to 2019. Increasing trend from 2018 to 2019 is of 23.5 Million. Focused on liquidity, from 2018 to 2019. Focused on profitability from 2019 to 2020.

22. Net Loans/ Total Assets Increase in profitability by compromising liquidity.

23. Government Securities / TA Decrease of 42.6 Million in Government securities from 2017 to 2018. Total asset increased at a faster pace than the Government securities, reason for ratio declining in 2019.

24. Cash Asset and Govt. Sec / TA Decline because of focus on profitability. Cash asset increased but Government securities decreased and total assets increased than cash assets. It increased profitability and compromised liquidity

25. Credit Risk Ratios

26. NPL / Gross Loans And Leases

27. Charge Off/ Gross Loans And Leases

28. ALL / Gross Loans

29. ALL / Eq Capital

30. PLL / Gross Loans and Leases

31. Gross Loans / Total Deposits

32. NPL / TA

33. Solvency and Capital Adequacy Ratios The capital adequacy ratio (CAR) measures whether a company has a sufficient cushion to deal with potential financial losses. The solvency ratio instead measures whether a company has enough cash on hand to cover its short- and long-term debts and obligations.

34. EQ/ TA Equity / Total assets

35. TA / EQ The total assets over total equity. the equity multiplier. The increasing trend and debt financing. A bad sign

36. TL / EQ Increase and Liability and decrease in Equity Less equity means that Habib metro is relying on other sources and debt financing. Other sources are being relied on =Less Equity Demerits of relying on other sources

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