The graph shows a positive impact of Habib metro and Askari since their expenses were lower which shows the efficiency of the employees for the year 2019 where they had to face the legal crisis of UBL had an increase in expense but which shows crisis come and go but the industry isn’t affected with it. 17
HABIB METRO ASKARI UBL 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.0 0.9 0.8 Administrative Expenses to profit before tax RETURN ON CAPITAL EMPLOYED Return on capital employed ( ROCE ) is a financial ratio that measures a company's profitability and the efficiency with which its capital is used. In other words, the ratio measures how well a company is generating profits from its capital. Return on capital employed ( ROCE ) is a good baseline measure of a company's performance. It is especially useful when comparing certain types of businesses. It is best employed in conjunction with other performance measures rather than looked at in isolation. Over here the graph shows that there has been a significant increase of Askari and UBL in 2019 however there has been a decline of Habib metro due to the legal actions being taken against Habib metro at Time Exchange, HABIB METRO ASKARI UBL 0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0 27.9 30.7 35.1 Return on Capital Employed 18
RETURN ON REVENUE The Return on Revenue (ROR) is a measure of profitability that compares net income of a company to its revenue . It is calculated by dividing net income by revenue . A business can increase ROR by increasing profit with a change in sales mix or by cutting expenses. The graph shows that there was an increase ROR of Askari and UBL in 2019 which shows that the bank was very stable. Although there was a sudden decline of habib metro due to the market impact that it had faced on this year. HABIB METRO ASKARI UBL 0.0 5.0 10.0 15.0 20.0 25.0 30.0 19.2 23.1 24.3 Return on Revenue 19
CAPITAL/LEVERAGE RATIO Capital Structure Ratios reveal: 1) the extent to which the firm is financed with debt and 2) its likelihood of defaulting on its debt obligations. These ratios include: CAPITAL/LEVERAGE RATIO: HABIB METRO ASKARI UBL Capital Ratio 7.5 7.7 7.0 Deposit to Equity ratio 11.0 10.6 10.4 INTERCOMPANY ANALYSIS CAPITAL RATIO Capital Ratio also known as Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR) is the ratio of a bank's capital to its risk. It is a measure of a bank’s capital . It is expressed as a percentage of a bank's risk weighted credit exposures. The capital ratio is the percentage of a bank's capital to its risk-weighted assets. Weights are defined by risk- sensitivity ratios whose calculation is dictated under the relevant Accord. The following graph shows the consistent stability of the all banks from in 2019 it was 7.5%, 7.7 and 7.2 with an decrease. HABIB METRO ASKARI UBL 6.6 6.8 7.0 7.2 7.4 7.6 7.8 8.0 7.5 7.7 7.0 Capital Ratio 20
DEPOSIT TO EQUITY RATIO The following graph represents total deposits to equity ratio. It shows that the all banks are progressing very well and the deposits of the bank has been increasing in this year 2019.
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- Spring '16
- Faisal Dehdhi
- Financial Ratio, Habib Metro