Documente Academic
Documente Profesional
Documente Cultură
ADNAN ID # 4175
OBJECTIVES AND AIMS OF THE STUDY The primary focus is likely to determine why the financial .performance of the HBL is inconsistent To understand the Financial Policies and Practices of HBL .To know different terms and conditions for the lending products To determine how the Independent variable affects the financial performance To analyze the satisfaction of employees with the environment .provided by these banks
History of HBL
HBL is the largest commercial bank in Pakistan having an extensive network of 1425 domestic branches the largest in Pakistan and 55 international branches. It has come a long way from its modest beginnings in Bombay in 1941 when it commenced operations with a fixed capital of 25,000 rupees. Start business at Karachi in 1943.
HBL VISSION:
HBL MISSION
To be recognized as the leading financial institution of Pakistan, and a dynamic international bank in the emerging markets, providing our customers with a premium set of innovative products and services, and granting superior value to our stakeholders, shareholders, customers and employees.
Public Relation Department Personal Administration Department Personal Policy Department Efficiency & Discipline Department Staff Relation & Welfare Department Branches Development & Control Department Credit Operations Department Micro Credit & Spl. Schemes Department Credit Policy Department Recovery Operations Department Recovery policy & Debt Classification Department Budget Department HO Accounts Department Central Accounts Department Head Office Department
16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30.
Network Development Department System Development Department Data Management Department Hardware Development Department Central Information Department Technical Assistance Department Law Department Special asset Management Department Recovery Litigation Department Building and works Department Administration Department Printing & Stationary Department HBL staff College Karachi Investigation & Complaints Department Planning & Corporate Affairs Department
Liquidity Ratio
2007
Current Ratio Advances to Deposit Ratio 1.06 0.72
208
1.07 0.76
2009 2010
1.07 0.70 1.08 0.62
2011
1.08 0.63
Leverage Ratio
2007
Debt to Equity Ratio Debt to Total Assets Ratio Long Term capitalization 9.94 0.91 0.267
2008
9.08 0.90 0.277
2009 2010
9.23 0.90 0.287 8.61 0.89 0.242
2011
8.94 0.90 0.283
Coverage Ratio
2007
1.79
2009
1.64
2010
1.78
2011
1.83
Activity Ratio
2007
Advances to interest ratio Total Assets to interest earned Deposit to interest earned 7.57 13.71 10.52
2008
7.21 11.97 9.43
2009
6.00 11.35 8.97
2010
5.65 11.37 9.20
2011
20.53 42.01 32.77
Profitability Ratio
2007
Return on Investment Return on Equity Earning per Share 0.01 0.16 13.18
2008
0.02 0.21 20.47
2009
0.015 0.16 14.70
2010
0.018 0.18 16.78
2011
0.005 0.05 4.95
2008
0.099 7.94 0.77 0.79
2009
0.097 8.09 0.67 0.78
2010
0.104 7.76 0.65 0.80
2011
0.10 7.76 0.63 0.79
100.00
101.80
328.70 1721.00 121.60 119.00 121.70 139.20 150.30 124.80 132.00 111.00 108.00 134.00 118.00 123.00
100.00 77.60 100.00 119.40 100.00 107.00 100.00 100.00 100.00 169.70 129.50 109.50
100.00 100.00
110.00 122.30
100.00 119.00
2008
125.40 138.48 117.40 163.40 121.15 145.45 154.83
2009
141.50 163.75 127.89 104.54 121.13 132.56 124.77
2010
148.80 165.54 138.55 117.60 128.20 164.91 156.02
2011
44.61 48.35 42.32 34.69 36.88 50.78 49.58
11 10 03 01 00
SA A N DA SD
Q4: Do you think the Privatization of the bank improved the financial performance? 06 09 05 03 02 SA A N DA SD
10 8 SA 6 4 2 0 N DA SD A SA A N DA SD
05 04 09 04 03
SA A N DA SD
8 6 SA A DA 4 SD 2 0
Q9: There is relationship between financial performance and interest rate of the bank?
16 SA SA A N DA A N SD DA SD
14 03 00 05 03
SA A N DA SD
14 12 10 8 6 4 2 0
Q10: Do you think the Deposits affect the financial performance of the HBL? 12 09 01 01 02 SA A N DA SD
14 12 10 8 6 4 2 0 SD ND A A SA A N DA SD SA
Hypothesis Testing
Note # The dependent Variable (Financial Performance) is constant with the following values. Years 2007 2008 2009 2010 2011 Value (Financial Performance) 32.19 42.45 31.40 36.24 = 179.99 / 5 = 35.99 37.71 179.99
HYPOTHESIS # 1
H0: There is no relationship between financial performance of HBL and deposits. H1: There is relationship between financial performance of HBL and deposits.
YEAR
(X(Deposits
76.7 78.8 79.0 80.82 78.0 393.32
X-X((
3.84 0.019 0.115 4.66 0.435 9.06
= X/n,
= =
393.32/5 78.66
s=
(x-x) /n-1
=
/4
Ho: =35.99 H: 35.99 =0.05(5%) 4.Critical region: t tab=t /2 (n-) t 0.025 (4) = = 2.776
5.Computation:
t= S/n-
X-
6.Conclusion : As t cal is greater than the t tabulated i-e 56.89> 2.776 so we reject Ho :Explanation As the calculated value 56.89 is grater than tabulated value 2.776, so we reject Ho and accept H1 that mean there is a relationship between financial performance of HBL and deposits.
100 80 60 40 20 0 2007 Financial Performance Deposits
2008
2009
2010
2011
HYPOTHESIS # 2 H0: There is no relationship between financial performance of HBL and .Interest rate H1: There is relationship between financial performance of HBL and Interest rate.
X 157.62/4 = = X/n = 46.96/5 9.39
YEAR
X-X((
3.31 4.75 11.49 13.98 124.09 157.62
Hypothesis testing: Ho: =35.99.1 H: 35.99 Level of significance: .2 )=0.05(5% 3.Formula: S/n- t=X-
2011
4.Critical region:
) t 0.025 (4
5.Computation: t =
X- S/n-
6.Conclusion: .As t cal is greater than the t tabulated i-e 8.58>2.776 so we reject Ho :Explanation As the calculated value 8.58 is grater than tabulated value 2.776, so we reject Ho and accept H1 that mean there is a relationship between financial performance of HBL and Interest rate.
45 40 35 30 25 20 15 10 5 0 2007
= -8.58
2008
2009
2010
2011
HYPOTHESIS # 3 H0: There is no relationship between financial performance of HBL and advances. H1: There is relationship between financial performance of HBL and advances.
YEAR (X(advances 55.23 60.20 52.64 49.70 48.90 266.67
X-X((
3.61 47.19 0.47 13.17 19.62 84.04
1.Hypothesis testing: Ho: =35.99 H: 35.99 2.Level of significance: =0.05(5%) 3.Formula: t=X- 4.Critical region: S/n-
5.Computation: t = S/n-
X-
6.Conclusion: As t cal is greater than the t tabulated i-e 7.57> 2.776 so we reject Ho :Explanation As the calculated value 7.57 is grater than tabulated value 2.776, so we reject Ho and accept H1 that mean there is a relationship between financial performance of HBL and Bad Debts.
7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 20 07 20 08 20 09 21 00 21 01 F a cia in n l P rfo a ce e rm n a vn s d a ce
HYPOTHESIS # 4 H0: There is no relationship between financial performance of HBL and salary. H1: There is relationship between financial performance of HBL and salary
YEAR 2007 2008 2009 2010 2011
(X(salary
58.40 58.04 53.31 51.61 49.76 271.12
X-X((
17.47 14.59 0.828 6.81 19.89 59.58
Ho: =35.99 .2
5.Computation: t = S/n-
X-
6.Conclusion: .As t cal is greater than the t tabulated i-e 9.49> 2.776 so we reject Ho :Explanation As the calculated value 9.49 is grater than tabulated value 2.776, so we reject Ho and accept H1 that mean there is a relationship between financial performance of HBL and Loaning process.
70 60 50 40 30 20 10 0 2007 2008 2009 2010 2011 Financial performance salary
RECOMMENDATIONS
Companys polices should be changed in order to facilitate its activities. The policies and practices should be made according to the demands of the present era of competition and advancement. Modern rule and the regulations should be developed to survive in the competitive environment. Loan collection process should be improved. HBL should try to develop a repaid process that will help the bank to improve its account receivables.
Bad Debts are a major problem. To decrease the bad debts they should give loan on 100% mortgage and pledge. In order to reduce the bad debts the bank also avail the factoring services of a reputable organization. The bank can increased the deposits by giving the more interest and benefits to the customers both in ways borrower and depositors
Thank You