Statement of Financial Position of

STATEMENT OF FINANCIAL POSITION OF
SUMMIT BANK PAKISTAN:
ASSETS 2016 2015 2014 2013
Cash and balances with treasury 12,787 10,540 9,384 9,204

banks
Balances with other banks 2,582 2,919 4,377 2,302
Lending to financial institution 1,631 1,000 6,50 1,555
Investments Gross 92,675 80,031 46,239 41,018
Advances Gross 94,256 83,099 77,804 65,568
Operating fixed assets 12,273 9,534 7,535 6,182
Deferred tax asset-net 5,201 5,609 5,645 5,800
Other assets-gross 10,557 10,503 9,371 7,075
Total assets-gross 231,952 203,235 161,005 138,704
Provisions against non- (14,412) (12,545) (11,349) (11,360)

performing loans & advances
Provisions on revaluation of (2,100) (1,838) (742) (1,330)

investments-net
Provisions held against other (428) (432) (457) (454)

assets
Total provisions (16,940) (14,815) (12,548) (13,144)
Total assets-net of provisions 215,022 188,420 148,457 125,560
LIABILITIES 2016 2015 2014 2013
Bills payable 5,061 2,729 1,532 2,205
Borrowings 49,820 49,756 25,312 9,961
Deposits and other accounts 142,871 119,854 105,309 106,351

Subordinated loans 1,497 1,497 1,498 1,499
Liabilities against assets subject - - - -

to finance lease
Deferred tax liabilities - - - -
Other liabilities 3,101 2,626 2,444 2,155
Total liabilities 202,350 176,462 136,095 122,171
Net assets 12,672 11,958 12,362 3,389
Presented By 2016 2015 2014 2013
Share capital 17,787 10,780 10,780 10,780
Convertible preferred shares 2,156 2,156 2,156 2,156
Advance against subscription of 1,855 7,007 7,507 -

shares
Shares premium 1,000 1,000 1,000 1,000
Discount on issue of shares (1,297) (1,297) (1,297) (1,297)
Statutory reserves 153 153 111 65
Merger reserves 1,579 1,579 1,579 1,579
Accumulated losses 9,715 7,421 7,660 7,877
Total Equity 10,560 10,799 11,018 3,248
PROFITABILITY 2016 2015 2014 2013
Mark up/return/interest earned 10,627 10,705 9,827 9,178
Mark up/return/interest expensed (7,854) (7,657) (7,401) (8,330)
Net mark up/interest income 2,773 3,048 2,426 848
Net mark up/interest income after 889 1,473 1,863 1,685

provision
Non mark up/interest income 3,127 4,320 3,121 1,686
Non mark up/interest expense 5,934 5,137 4,972 4,778
Loss/profit before provision of tax (34) 2,231 575 (2,244)
Provision/reversal against NPL,S (1,911) (1,200) (87) 916
Reversal/provision for diminution 27 (375) (476) (79)

in the value of investment
Loss/profit before taxation (1,918) 656 12 (1,407)
Taxation charged/reversal 256 439 218 421
Loss/profit after taxation (2,174) 217 230 (1,828)
Ratio analysis of summit bank

Following ratios are useful to assessing the bank financial standing and serviceability:
Profitability Ratio:
A profitability ratio is used to measure the profitability, which is a way to measure a company
performance. profitability is simply the capacity to make a profit, and a profit is what is left
over from income earned after you have deducted all costs and expenses related to earning
the income.
Profitability ratios are as follows:
Net profit margin ratio:

Formula: Net profit or Net loss/Total revenue
Net Profit Margin measures how much of each Rupee; the Bank earns is converted into
Profits.
Financial Year2016 Financial Year 2015 Financial year 2014 Financial year 2013
=(2,174) /10,627 =217/10,705 =230/9,827 =(1,828)/9,178
(20.46%) 2.02% 2.34% (19.92%)

Graphical representation:
5.00%
0.00%
2016 2015 2014 2013
-5.00%
-10.00%
-15.00%
-20.00%
-25.00%
Explanation:
The above result indicate that the bank bear loss in financial year 2016 and earn
profit in financial year 2015 which is calculated through net profit or net loss and total
revenue.
Return on Asset:
Formula= Net income or Net loss/ T0tal assets
Return on assets measure how effectively the company produces income from its assets.
Financial year 2016 Financial year 2015 Financial year 2014 Financial year 2013
(2,174)/215,022 217/188,420 230/148,457 (1,828)/125,560

=(0.010) =0.0011 =0.0015 =(0.014)
0.02
0.02
0.01
0.01
0
2016 2015 2014 2013
-0.01
-0.01
-0.02
Explanation:
In 2015company return on assets ratio is 0.0011 as compare to 2016 which
is-0.010 . It means company effectively earn income in 2015.
Return on Equity:
Formula: Net profit after tax or loss/Total equity
Return on equity measure how much a company makes for each dollar that
investors put into it.
(2,174)/10,560 217/10,799 230/11,018 (1,828)/3,248

=(0.21) =0.02 =0.02 =(0.56)
0.1
0
2016 2015 2014 2013
-0.1
-0.2
-0.3
-0.4
-0.5
-0.6
Explanation:
In 2016 bank return on equity is in negative (0.21)as compare to 2015 which is
positive 0.02.It is weak sign for bank because it lose confidence of investors.
Spread ratio:
Formula=Interest earned/Interest expense
Financial year Financial year Financial year Financial year

2015 2014 2013 2012
10,627/7,854 10,705/7,657 9,827/7,401 9,178/8,330
=1.35 =1.39 =1.32 =1.10
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2016 2015 2014 2013
Explanation:
The spread ratio of financial year 2015 is greater than 2016 which means the
bank has been able to borrow funds at lower rates and pass them onto debtors at higher rates
and vice versa.
Leverage ratios:
Leverage ratio measure the ability of a company to repay its long-term debts and
solvency of a company.
Leverage ratios are as follows:
Debt Ratio:
Formula :Total debts/Total assets
Debt Ratio is a measure of a Banks Total Short-Term to Long-Term assets and its total debts.
Higher ratio implies greater stability and financial risk
202,350/215,022 176,462/188,420 136,095/148,457 122,171/125,560

=0.94 =0.93 =0.91 =0.97
0.98
0.97
0.96
0.95
0.94
0.93
0.92
0.91
0.9
0.89
0.88
2016 2015 2014 2013
Explanation:
The result shows that the debt ratio has decreased in 2015 which means that
dependant on debt has decreased in year 2015 compared to year 2016.
Time Interest Earned Ratio:

Formula= Loss/Profit before tax+ Interest expense/ Interest expense
This ratio indicates how many times the bank can pay the interest expense with its income
before tax. The higher the ratio, the better situation the Bank is in.
(1,918)+7,854/7,854 656+7,657/7,657 12+7,401/7,401 (1,407)+8,330/8,330

=(1.24)times =1.08times =1.001times =(1.16)times
1.5
0.5
0
2016 2015 2014 2013
-0.5
-1
-1.5
Explanation:
Time Earned Interest Ratio in 2015 has increased which means that banks EBIT has
improved in order to cover its interest expense.
Debt/ Equity Ratio:

Formula= Total debts/ Total Equity
This Ratio is calculated by dividing Banks total liabilities by its stakeholders equity.
202,350/10,560 176,462/10,799 136,095/11,018 122,171/3,248
=19.16 =16.34 =12.35 =37.61

40
35
30
25
20
15
10
0
2016 2015 2014 2013
Explanation:
We have observed that debt in 2016 has increased as compared to financial year 2015 which
means that debt exceeds the equity.
Advance/Deposit ratio:
Formula= Advances/Deposits
This ratio evaluate Banks liquidity by dividing the banks total loans by its
total deposits.
94,256/142,871 83,099/119,854 77,804/105,309 65,568/106,351

=0.66times =0.69Times =0.74Times =0.62Times
0.76
0.74
0.72
0.7
0.68
0.66
0.64
0.62
0.6
0.58
0.56
2016 2015 2014 2013
Explanation:
In financial year 2015 advances/deposits ratio is increased by 0.69 as
compared to financial year 2015 which is 0.66.
Market Ratio:
Market Ratios are used by investors to measure the performance of a
business as an investment and also the cost of issuing stock.
Earnings per share (EPS):

Formula=Net profit after tax/Number of shares outstanding
Earnings per share is a calculation of how profitable a bank is on a shareholder basis.
=(1.00) =0.15 =0.16 =(1.52)

1.5
0.5
0
2016 2015 2014 2013
-0.5
-1
-1.5
Explanation:
The above analysis shows the earnings per share of financial year 2015 is greater than
2016.The shareholder saw loss in FY2016.
Non-Interest income to total income:
Formula= Non interest income/Total income
3,127/(2,174) 4320/217 3121/230 1686/(1828)

=(1.44) =19.90 =13.56 =(0.92)
25
20
15
10
0
2016 2015 2014 2013
-5
Explanation:
Non interest income to Total income is negative in financial year 2016,which means that bank
attracted less customer in 2016 as compare to 2015.Therefore its non interest income has
declined.

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STATEMENT OF FINANCIAL POSITION OF

SUMMIT BANK PAKISTAN:

ASSETS 2016 2015 2014 2013

Cash and balances with treasury 12,787 10,540 9,384 9,204

Balances with other banks 2,582 2,919 4,377 2,302

Lending to financial institution 1,631 1,000 6,50 1,555

Investments Gross 92,675 80,031 46,239 41,018

Advances Gross 94,256 83,099 77,804 65,568

Operating fixed assets 12,273 9,534 7,535 6,182

Deferred tax asset-net 5,201 5,609 5,645 5,800

Other assets-gross 10,557 10,503 9,371 7,075

Total assets-gross 231,952 203,235 161,005 138,704

Provisions against non- (14,412) (12,545) (11,349) (11,360)

Provisions on revaluation of (2,100) (1,838) (742) (1,330)

Provisions held against other (428) (432) (457) (454)

Total provisions (16,940) (14,815) (12,548) (13,144)

Total assets-net of provisions 215,022 188,420 148,457 125,560

LIABILITIES 2016 2015 2014 2013

Bills payable 5,061 2,729 1,532 2,205

Borrowings 49,820 49,756 25,312 9,961

Deposits and other accounts 142,871 119,854 105,309 106,351

Liabilities against assets subject - - - -

Deferred tax liabilities - - - -

Other liabilities 3,101 2,626 2,444 2,155

Total liabilities 202,350 176,462 136,095 122,171

Net assets 12,672 11,958 12,362 3,389

Presented By 2016 2015 2014 2013

Share capital 17,787 10,780 10,780 10,780

Convertible preferred shares 2,156 2,156 2,156 2,156

Advance against subscription of 1,855 7,007 7,507 -

Shares premium 1,000 1,000 1,000 1,000

Discount on issue of shares (1,297) (1,297) (1,297) (1,297)

Statutory reserves 153 153 111 65

Merger reserves 1,579 1,579 1,579 1,579

Accumulated losses 9,715 7,421 7,660 7,877

Total Equity 10,560 10,799 11,018 3,248

PROFITABILITY 2016 2015 2014 2013

Mark up/return/interest earned 10,627 10,705 9,827 9,178

Mark up/return/interest expensed (7,854) (7,657) (7,401) (8,330)

Net mark up/interest income 2,773 3,048 2,426 848

Net mark up/interest income after 889 1,473 1,863 1,685

Non mark up/interest expense 5,934 5,137 4,972 4,778

Loss/profit before provision of tax (34) 2,231 575 (2,244)

Provision/reversal against NPL,S (1,911) (1,200) (87) 916

Reversal/provision for diminution 27 (375) (476) (79)

Loss/profit before taxation (1,918) 656 12 (1,407)

Taxation charged/reversal 256 439 218 421

Loss/profit after taxation (2,174) 217 230 (1,828)

Ratio analysis of summit bank

Profitability ratios are as follows:

Net profit margin ratio:

=(2,174) /10,627 =217/10,705 =230/9,827 =(1,828)/9,178

(20.46%) 2.02% 2.34% (19.92%)

(2,174)/215,022 217/188,420 230/148,457 (1,828)/125,560

(2,174)/10,560 217/10,799 230/11,018 (1,828)/3,248

Formula=Interest earned/Interest expense

Financial year Financial year Financial year Financial year

Leverage ratios are as follows:

Formula :Total debts/Total assets

202,350/215,022 176,462/188,420 136,095/148,457 122,171/125,560

Time Interest Earned Ratio:

(1,918)+7,854/7,854 656+7,657/7,657 12+7,401/7,401 (1,407)+8,330/8,330

Debt/ Equity Ratio: