FIRST WOMEN BANK LIMITED

In The Name of ALLAH, The Most Merciful, The Most Beneficial.

FINANCIAL STATEMENT ANALYSIS

FWBL 2004-2008

Presented By,
AAMIR RAZA

SADIA GULL

SADIA KIRAN Presented To,

WAQAS ANWER Sir GHULAM ALI BHATTI
QALB ABBAS University of Sargodha

Group (A)
M.B.A. Regular “A”
FIRST WOMEN BANK LIMITED

To Almighty Allah
The Most merciful
The Most beneficent
Who enabled us the ability to
understand and comprehend things
around us.
FIRST WOMEN BANK LIMITED

We would like to thank our professor “SIR GHULAM ALI BHATTI”

who was always there to help and guide us when we needed help. His
perceptive criticism kept us working to make this project more better. We are
thankful to him for his encouraging and valuable support. Working under him
was an extremely knowledgeable and enriching experience for us. We are
very thankful to him for all the value addition and enhancement done to us.

No words can adequately express my overriding debt of gratitude to my

parents whose support helps me in all the way. Above all I shall thank my
friends who constantly encouraged and blessed me so as to enable me to do
this work successfully.
FIRST WOMEN BANK LIMITED

First of all we would like to thank that great entity that helped us to get
through this report safely, the one who was always there when no one was!

SHUKER- ALL- HUMDULILLAH!

Would that we have words to pay tribute to our loving parents and
teachers whose invaluable prays salutary admire and embodying attitude
kept our spirit alive to strive for knowledge and integrity which enable us to
reach milestone.

We would also like to express enormous gratitude to our respectable teacher

“SIR GHULAM ALI BHATTI” for providing the direction for this project and for
helping us in refining our effort and ideas.

We also acknowledge the help and pleasant gathering of all our class
fellows. We are also thankful to all of those people who helped us in
accomplishing our project.
FIRST WOMEN BANK LIMITED
FWBL HISTORY
First Women Bank Ltd. is a unique financial institution, a scheduled
Commercial Bank and a Development Financial Institution for socio-economic
empowerment of women. First Women Bank Limited(FWBL) is located in Karachi,
Sindh, Pakistan.

First Women Bank Limited was incorporated as a Scheduled Commercial

Bank in Public Sector as Public Company Ltd by shares on 21st November 1989
Under Companies Ordinance 1984 & Commenced its business on 2nd December
1989 with a paid up capital of Rs. 100 million (Now enhanced to Rs. 200 Million)
90% of which was contributed by five leading public sector Banks of the country viz:
National Bank of Pakistan, Habib Bank Limited, Muslim Bank Commercial Limited,
United Bank Limited and Allied Bank of Pakistan Limited in varying proportions and
10% had come from Federal Government.

ORGANIZATION

The Bank is headed by Ms. Zarine Aziz, who took over as President in year
2001. FWBL suffered heavy FOREX loss in 1996. The situation further deteriorated
due to negative equity, pending tax appeal, low capital base, and infected balance
sheet. In 2001, the Government created an enabling environment for the Bank. The
period from June 2001 to December 2006 was an era of “Turnaround” for the First
Women Bank Ltd. with significant growth recorded in all financial activities. The
Bank accomplished the highest ever results in all key areas during the years 2001 –
2006 over the previous 12 years and continued to progress in all spheres of
financial and operational activities. The Bank crossed achieving consolidated net
profit of Rs. 1.2 billion during last 6 years 2001 to 2006 (as on January 23, 2007);
while, the consolidated net profit for 11 years from 1989 to 2000 was Rs. 20 million,
FIRST WOMEN BANK LIMITED
resulting from consolidated profit of Rs. 291 million netted of Rs.271 million, during
that period. It was also a significant achievement when tax appeals for the year
1995-2000 were settled in Bank’s favor in the year 2000 and the Bank received tax
refund of Rs.219 million in the shape of Pakistan Investment Bonds. The
accumulated losses of Rs. 138 million as of Dec. 2000 were wiped out in 2003. Bank
issued 20% Bonus Shares to the shareholders for the Year 2003 , which increased
the paid up Capital from Rs. 200 to Rs. 240 million. Paid-up Capital was further
enhanced to Rs.283 million with the injection of Rs. 40 million from the Ministry of
Women Development, Government of Pakistan during 2004.

The Pakistan Credit Rating Agency has upgraded the long and short-term
credit ratings to “AA” and “A1+”, respectively. The rating demonstrates the Bank’s
sustainability and financial strength. FWBL was the first Bank to launch Micro Credit
in Pakistan. The Bank has disbursed Rs.10.8 billion to women, thereby proved the
best outreach.

In collaboration with ILO, FWBL directly financed women micro-borrowers in

rural areas. The project identified 42 micro-businesses and provided skill training to
375 rural women. The Bank disbursed micro-credit to 972 women living below
poverty line in 64 villages, with 100% recovery rate.
FIRST WOMEN BANK LIMITED
PRESIDENT & CEO
MS. SHAFQAT SULTANA (President & CEO)

Mrs. Shafqat Sultana President & CEO First Women Bank Ltd. is a prudent
banker and achiever par excellence. She is the 3rd president of First Women Bank
Ltd.

Ms. Shafqat has been serving the FWBL as its Executive Vice President and
General Manager Sindh and Baluchistan for the past nine years. She was also
member of Executive Committee of the Bank. She joined First Women Bank Ltd in
1989 as Branch Manager in AVP cadre, and was declared best Branch Manager for
two consecutive years. Promoted VP and Regional Development Chief in 1992, she
also used her expertise in the training & development of the women entrepreneur.
In 1998 she was promoted to SVP cadre and was entrusted with the responsibilities
of Sector Executive Upper Punjab. Further elevated to EVP in 2002, she was given
the responsibilities of General Manager Sindh & Baluchistan. She also held the
position of National Project Director- Women in Urban Credit, a project of UNDP.
For her outstanding performance she was awarded as “Best Sector Executive Upper
Punjab” in 2001 and honored with “Certificate of Excellence” for her contributions
in UNDP project in 2003.

She started her professional career from UBL in 1975. In 1985 she was
declared “best directing member staff”, and was the first Lady Manager at PC branch
Rawalpindi in 1988. In addition to representing Pakistan in World Conference on
Women in Beijing she has addressed in Senate, Parliament, and various national and
international organizations on women socio economic concerns.
FIRST WOMEN BANK LIMITED
VISION
"To be the lead Bank for Women"

Dynamic, adaptive and responsive to their special economic needs,

offering the best financial services and the best banking practices.

MISSION STATEMENT
Our mission is to be a financially sustainable bank with a specialized focus
on promoting economic prosperity and self-reliance in women of urban and
rural areas by:

Transforming the status of women from passive beneficiaries of social

services to dynamic agents of change.
Promoting asset ownership, through its unique credit policies.
Promoting entrepreneurs through Computer Literacy and Business
Centers for skill enhancement, product development and business
management.
Facilitating their access to financial services by providing support
through its Financial Services Desk on Corporate Affairs, Credit
Management and Trade Finance activities and advice on Legal, Taxation
and Marketing issues.
Providing extensive banking training through FWBL's Training Institute
and collaboration with other Banking Institutes of repute.
FIRST WOMEN BANK LIMITED
UNIQUE CHARACTER
Undertaking the conduct of all forms of business of a Banking Company
in a manner designed to meet the special needs of women and to encourage
and assist them in promotion and running of trade and industry and practice
of profession.

MARKET RECOGNITION

PACRA had maintained the Bank’s “long-term” and “short-term” entity

ratings, on standalone basis, at "BBB+" (Triple B Plus) and "A2" (A two),
respectively, as per the press release issued on 9th July, 2009. These ratings, as
defined by PACRA, indicate that there is currently a low expectation of credit
risk, the capacity for timely payment of financial commitments is considered
adequate, and obligations are supported by a satisfactory capacity for timely
repayment of financial commitments.
FIRST WOMEN BANK LIMITED
FIRST WOMEN BANK LIMITED
BALANCE SHEET
For the Period ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

ASSETS
2004 2005 2006 2007 2008
Cash and balances with treasury banks 567888 726003 705703 809657 575929
Balances with other banks 215845 295110 301056 384792 400761
Lending to financial institutions 3263159 1313119 1431628 1245000 350849
Investments net 3684852 5378387 3137533 3159640 2264088
Advances net 1649124 2462098 3066249 3063507 3304330
Operating fix assets 170038 79955 153060 148686 174833
Deferred tax assets 81621 16840 4536 56630
Other assets 14015 231722 189637 174294 176301
Total Assets 9646542 10503234 8989402 8985576 7303721

LIABILITIES
2004 2005 2006 2007 2008
B/P 71573 67406 62057 193321 101993
Borrowings 213150 846150 931520 21543 27140
Deposits and other accounts 8689749 8716185 6965378 7569059 5939308
Subordinated loan
Deferred tax liabilities 11000
Other liabilities 81880 146804 95815 102409 132247

OWNER EQUITY
2004 2005 2006 2007 2008
Share capital 283650 283650 283650 283650 283650
Reserves 115857 142577 175759 207336 228540
Unappropriated profit 168883 276054 409070 537130 623610
568390 702281 868479 1028116 1135800
Surplus on revaluation of asset 21800 24408 66153 60128 -32767
Net owner Equity 590190 726689 934632 1088244 1103033
FIRST WOMEN BANK LIMITED
FIRST WOMEN BANK LIMITED
BALANCE SHEET
Horizontal Analysis
For the Period ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

ASSETS
2004 2005 2006 2007 2008
Cash and balances with treasury banks 100 127.84 124.27 142.57 101.42
Balances with other banks 100 136.72 139.48 178.27 185.67
Lending to financial institutions 100 40.24 43.87 38.15 10.75
Investments net 100 145.96 85.15 85.75 61.44
Advances net 100 149.30 185.93 185.77 200.37
Operating fix assets 100 47.02 90.02 87.44 102.82
Deferred tax assets 100 20.63 5.56 0.00 69.38
Other assets 100 1653.39 1353.10 1243.62 1257.95
Total Assets 100 108.88 93.19 93.15 75.71

LIABILITIES
2004 2005 2006 2007 2008
B/P 100 94.18 86.70 270.10 142.50
Borrowings 100 396.97 437.03 10.11 12.73
Deposits and other accounts 100 100.30 80.16 87.10 68.35
Subordinated loan
Deferred tax liabilities 0.00
Other liabilities 100 179.29 117.02 125.07 161.51

OWNER EQUITY
2004 2005 2006 2007 2008
Share capital 100 100 100 100 100
Reserves 100 123.06 151.70 178.96 197.26
Unappropriated profit 100 163.46 242.22 318.05 369.26
100 123.56 152.80 180.88 199.83
Surplus on revaluation of asset 100 111.96 303.45 275.82 -150.31
Net owner Equity 100 123.13 158.36 184.39 186.89
FIRST WOMEN BANK LIMITED
FIRST WOMEN BANK LIMITED
BALANCE SHEET
Vertical Analysis
For the Period ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

ASSETS
2004 2005 2006 2007 2008
Cash and balances with treasury banks 5.89 6.91 7.85 9.01 7.89
Balances with other banks 2.24 2.81 3.35 4.28 5.49
Lending to financial institutions 33.83 12.50 15.93 1.39 4.80
Investments net 38.20 51.21 34.90 35.16 31.00
Advances net 17.10 23.44 34.11 34.09 45.24
Operating fix assets 1.76 0.76 1.70 1.65 2.39
Deferred tax assets 0.85 0.16 0.05 0.00 0.78
Other assets 0.15 2.21 2.11 1.94 2.41
Total Assets 100 100 100 100 100

LIABILITIES
2004 2005 2006 2007 2008
B/P 0.79 0.69 0.77 2.45 1.64
Borrowings 2.35 8.65 11.56 0.27 0.44
Deposits and other accounts 95.95 89.15 86.48 95.84 95.78
Subordinated loan 0.00 0.00 0.00 0.00 0.00
Deferred tax liabilities 0.00 0.00 0.00 0.14 0.00
Other liabilities 0.90 1.50 1.19 1.30 2.13

OWNER EQUITY
2004 2005 2006 2007 2008
Share capital 2.94 2.70 3.16 3.16 3.88
Reserves 1.20 1.36 1.96 2.31 3.13
Unappropriated profit 1.75 2.63 4.55 5.98 8.54
5.89 6.69 9.66 11.44 15.55
Surplus on revaluation of asset 0.23 0.23 0.74 0.67 -0.45
Net owner Equity 6.12 6.92 10.40 12.11 15.10
FIRST WOMEN BANK LIMITED
COMMENTS ON BALANCE SHEET:

Horizontal Analysis

The horizontal analysis trend showing a bad position of FWBL because as

compared to 2004 and now in 2008 there in continuous decrease in the assets of
the company. Assets increased in 2005 but after that continuously decreasing. This
is due to the low lending to other financial institutions as compared to 2004.
There is very much increase in the liabilities of the FWBL from 2004 to 2008 called
to be 62% increase as compared to 2004. Owner equity is increased to 82%
percent during that period. This trend showing low business activities as the life of
bank growing.

Vertical Analysis

Trend in the balance sheet is similar. As we have stated before that total
asset level decrease up to 28%. But contribution of all factors within a year is same
not so much fluctuation. Mainly investment level of the bank is decreased that’s
showing great fluctuation but that is also continuous change. But in the net owner
equity level has increased with rate to net assets its contribution is increased.
FIRST WOMEN BANK LIMITED
FIRST WOMEN BANK LIMITED
PROFIT AND LOSS ACCONUT
For the Period ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

Accounts
2004 2005 2006 2007 2008
Mark up/interest earned 460229 654579 722410 685346 736103
Mark up/interest expenses 112466 217744 237905 171694 212601
Net Markup\Interest income 347763 436835 484505 513652 523502
Provision for diminution in value of investments 3585 10716
Provision against advances- net 12590 5583 18065 39437
Bad debts written off directly 28 43
3613 12633 5583 18065 50153
Net Markup\ Interest Income after Provisions 344150 424202 478922 495587 473349
Non Markup\Interest Income
Fee ,commission and brokerage income 32609 28061 35391 31672 24511
Dividend income 669 4721 5784 9375 9088
Income from dealing in foreign currencies 1765 1695 4073 4406 31902
Gain on sale of securities 129 3306 24115 7250
Other income 53793 19719 13320 12917 17592
Total Non-Markup\ Interest Income 88836 54325 61874 82485 90343
432986 478527 540796 578072 563692
Total Non-Markup\ Interest expenses
Administrative expenses 220166 255676 284219 332517 367798
Provision against other assets 314 744 -313
other charges 1797 1487 93 7446 5451
Total non- Markup/ interest expenses 222277 257907 284312 339650 373249
extraordinary item 0 0 0
Profit before Taxation 210709 220620 256484 238422 190443
Taxation 86385 87601 90574 80535 84423
Profit after tax 124324 133019 165910 157887 106020
FIRST WOMEN BANK LIMITED

FIRST WOMEN BANK LIMITED

PROFIT AND LOSS ACCONUT
HORIZONTAL ANALYSIS
For the Period ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

Accounts
2004 2005 2006 2007 2008
Mark up/interest earned 100 142.23 156.97 148.91 159.94
Mark up/interest expenses 100 193.61 211.54 152.66 189.04
Net Markup\Interest income 100 125.61 139.32 147.70 150.53
Provision for diminution in value of investments 100 0.00 0.00 0.00 298.91
Provision against advances- net
Bad debts written off directly 100 153.57 0.00 0.00 0.00
100 349.65 154.53 500.00 1388.13
Net Markup\ Interest Income after Provisions 100 123.26 139.16 144.00 137.54
Non Markup\Interest Income
Fee ,commission and brokerage income 100 86.05 108.53 97.13 75.17
Dividend income 100 705.68 864.57 1401.35 1358.45
Income from dealing in foreign currencies 100 96.03 230.76 249.63 1807.48
Gain on sale of securities
Other income 100 36.66 24.76 24.01 32.70
Total Non-Markup\ Interest Income 100 61.15 69.65 92.85 101.70
100 110.52 124.90 133.51 130.19
Total Non-Markup\ Interest expenses
Administrative expenses 100 116.13 129.09 151.03 167.05
Provision against other assets 100 236.94 0.00 -99.68 0.00
other charges 100 82.75 5.18 414.36 303.34
Total non- Markup/ interest expenses 100 116.03 127.91 152.80 167.92
extraordinary item
Profit before Taxation 100 104.70 121.72 113.15 90.38
Taxation 100 101.41 104.85 93.23 97.73
Profit after tax 100 106.99 133.45 127.00 85.28
FIRST WOMEN BANK LIMITED

FIRST WOMEN BANK LIMITED

PROFIT AND LOSS ACCONUT
VERTICAL ANALYSIS
For the Period ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

Accounts
2004 2005 2006 2007 2008
Mark up/interest earned 100 100 100 100 100
Mark up/interest expenses 24.44 33.26 32.93 25.05 28.88
Net Markup\Interest income 75.56 66.74 67.07 74.95 71.12
Provision for diminution in value of investments 0.78 0.00 0.00 0.00 1.46
Provision against advances- net 0.00 1.92 0.77 2.64 5.36
Bad debts written off directly 0.01 0.01 0.00 0.00 0.00
0.79 1.93 0.77 2.64 6.81
Net Markup\ Interest Income after Provisions 74.78 64.81 66.30 72.31 64.30
Non Markup\Interest Income
Fee ,commission and brokerage income 7.09 4.29 4.90 4.62 3.33
Dividend income 0.15 0.72 0.80 1.37 1.23
Income from dealing in foreign currencies 0.38 0.26 0.56 0.64 4.33
Gain on sale of securities 0.00 0.02 0.46 3.52 0.98
Other income 11.69 3.01 1.84 1.88 2.39
Total Non-Markup\ Interest Income 19.30 8.30 8.56 12.04 12.27
94.08 73.10 74.86 84.35 76.58
Total Non-Markup\ Interest expenses
Administrative expenses 47.84 39.06 39.34 48.52 49.97
Provision against other assets 0.07 0.11 0.00 -0.05 0.00
other charges 0.39 0.23 0.01 1.09 0.74
Total non- Markup/ interest expenses 48.30 39.40 39.36 49.56 50.71
extraordinary item
Profit before Taxation 45.78 33.70 35.50 34.79 25.87
Taxation 18.77 13.38 12.54 11.75 11.47
Profit after tax 27.01 20.32 22.97 23.04 14.40
FIRST WOMEN BANK LIMITED
COMMENTS ON PROFIT & LOSS A/C:

Horizontal Analysis

The horizontal analysis trend showing a very unimaginable position of

FWBL because as compared to 2004 and now in 2008 there in continuous
increase in the markup of the company. There is 60% increase in the markup
of the company. Markup is increased in 2005 and after that continuously
increasing. But there expenses level is increased much more net markup level
is 50%.

There is very much increase in the markup of the FWBL from 2004 to 2008
called to be 50% increase as compared to 2004. But their profit as compared
to 2004 is decreased to 78%. Interest earned in increased to 50% and profit is
decreased by 23%. This trend showing more business activities as the life of
bank growing but their overall profit margin is decreasing. Their expenses are
increasing at a larger rate. Overall business is increasing but as business
grows their expenses are decreased to a larger extent.

Vertical Analysis

Trend in the profit & loss a/c is similar. As we have stated before that
expenses are increased up to 28% from 24%. But contribution of all factors
within a year is same but our overall expenses are increasing to a larger
extent. Mainly profit margin of the bank is decreased that’s showing great
fluctuation but that is also continuous change. Total markup income is
decreased but expenses level is increased to a larger extent. That’s why in
presence of large income our profit margin is still decreased.
FIRST WOMEN BANK LIMITED
FIRST WOMEN BANK LIMITED
RATIO ANALYSIS
For the Peroid ended 2004-2008
(In millions of Pak. Rupees Except for per share items)

RATIOS
2008 2007 2006 2005 2004
Days markup in
1812.44 1697.86 2272.57 2134.45 3895.85
receivable
Account Receivable
0.215 0.430 0.161 0.151 0.172
turnover
A\R Turnover in days 1696.61 6174.71 2272.57 2455.90 2455.90
Working Capital 847577 979585 13182 107557 499010
Current ratio 7.560 5.560 1.010 1.120 2.740
Acid test Ratio 7.560 5.560 1.010 1.120 2.740
Cash Ratio 7.560 5.560 1.010 1.120 2.740
Sale to working capital
ratio 0.630 1.631 11.966 18.645 1.845
Debt ratio 0.850 1.000 0.900 0.920 1.110
Debt Eqity ratio 5.620 7.260 8.620 13.440 15.340
G.P margin 0.710 0.750 0.670 0.660 0.660
Sale to fixed assets 4.550 4.540 6.200 4.280 4.280
Net profit margin 0.140 0.230 0.355 0.462 0.420
Total asset T.O 0.100 0.080 0.070 5.480 5.480
Return on asset 0.525 0.426 0.411 0.211 0.223
Dupont Analsis 0.014 0.018 0.025 2.532 2.304
Operating Incom
Margin 0.730 0.350 0.360 0.310 0.310
Operating Assets
turnover 0.024 0.021 0.018 0.017 0.017
Return on operating
Asset 0.017 0.007 0.007 0.005 0.005
FIRST WOMEN BANK LIMITED

CURRENT ASSETS
2008 2007 2006 2005 2004
Cash balance with
575929 809657 705703 726003 567888
treasury stock
Balances with other
400761 384792 301056 295110 215845
banks
Current Assets 976690 1194449 1006759 1021113 783733

CURRENT
LIABILITIES 2008 2007 2006 2005 2004
Bills Payable 101993 193321 62057 67406 71573
Borrowings 27140 21543 931520 846150 213150
Current liabilities 129133 214864 993577 913556 284723

WORKING
CAPITAL 847557 979585 13182 107557 499010
(C.A - C.L)
FIRST WOMEN BANK LIMITED
COMMENTS ON RATIO ANALYSIS:

These all ratios showing an inconsistent trend of first women bank

limited. In Days markup in receivables in 2004 there is excess percentage then
2008 which shows the markup on their receivables per day is more then
current situation. Means due to increasing competition their percentages are
decreasing. That would not be a favorable condition for FWBL.

Account receivable turnover is fluctuating every year. In 2007 it is

maximum that shows their good position that in how many days they are
recovering their receivables. In 2008 that also decreases.

FWBL current assets are more then their liabilities that’s showing their
good capital structure. And these are more in 2007 and 2008. With respect o
working capital 2007 is also a favorable year.

Their Asset to liabilities ratio is much greater in 2008 then any other
year this shows a great increase in their Assets in last few years.
As current ratio increase Acid-test and cash ratio also increases to same
amount.

As their working capital is increasing their assets are increasing but their
return or sale is not increasing with respect to their working capital.

Their debt ratio showing a slight increase in the current year that
results a better standing in last year. With respect to their common stock or
owner equity their ratios are decreasing. And least is in year 2008.

Gross profit margin is increasing year by year maximum in 2007 and a

slight decrease in 2008 shows good profit margin. Sales with respect to fix
assets are consistent through the company life.Net profit margin is reduced in
the last year. That’s shows profit with respect to revenue.

Decrease in DuPont analysis showing per unit decrease and also

turnover on assets. Means turnover and profit margin are decreasing both at a
consistent rate.
FIRST WOMEN BANK LIMITED
Return on operating assets is increasing means their operating income
is increasing from their operating assets.

Overall, results shows that company per unit profit and profit ratios are
decreasing with consistent rate. Means due to stiff competition company has
to lose its per unit income.

That’s decrease is due to the increase in their assts. above ratios are
showing increase in the assets of the company. So, concluding all remarks I
will say that company assets are increasing but their profit margin is not
increasing with that rate.