INTRODUCTION/ OVERVIEW OF THE ORGANIZATION:

a) The meaning BANK:

The derivation of the word "bank" from the French word "bank" or BANCUS which means
the bank or an office or institution on trust, loan and exchange of money. Some
authorities believe that the "bank" is set to "Germans" that the word refers to the
meaning of "common equity fund." Bank is the financial institution to borrow money
from one party for a period of time, and gives the other party (the government
entity or company). The difference is between the borrowing and lending profit /
interest to the bank. Bank lends and borrows money on the basis of interest. Banks
are confidential, on the basis of their world of movement. Main types of banks are:
• Banking Making Money
• Commercial banks.
• Bank failure.
• Bail out the banks.
• Banks exchange.
• Central banks.
• support banks

b) Commercial Bank:
Post trade in the arts as a routine banking. The bank collects money from people
(such as loans) and runs on the same amount of money on a loan for development.
Commercial Bank plays a vital role in the economic development of the country by
performing different functions as follows:
1. Acceptance of deposits (current, providing a constant) and account.
2. Making of loans and advances (overdrafts and cash loans, invoice discounting). 
a) VALUES OF HBL:
 Integrity:
For us, safety means a collaborative approach to continue our core values. United
with the power of shared values and integrity, and we are forming a network of
well-integrated team.
 Merit:
At each level, the selection of progress, we had a reliable system of human
resources that have been designed on the basis of objective criteria at every level
of the company's levels of practices. Thus, we are able to reach a certain level of
performance at all levels of the organization.
 Teamwork:
Our team aims to develop into a consistent and unified force, you, the customer, to
provide a level of service beyond your expectations. This power comes from the
collective and participatory activities, a common set of objectives and mind to
participate in the glory and power outages seen together face.
B) Innovation culture:
We strive to respond proactively to respect the new ideas and the price of agents,
leaders and creators of change.
HISTORY AND DEVELOPMENT OF HBL:

HABIB Bank Limited is the leader in Pakistan service. The

largest in Pakistan has enabled and 55 international branches HBL on the
comprehensive services that provide similar customer needs - a wide network of
branches in 1425 married. This class of customer relationships that exist provided
the mainstay of the operation of the bank.
Today, HBL is key role in the economic and financial development of Pakistan. It is
to reach a specific method as of the development of the popular early in India
MUMBY on 25 August 1941, while the operating funds and is as much a collection of
25,000 rupees.
Impressed with the highest level of performance, "requires AZAM Mohammad Ali
Jinnah," the bank for its operations and brought to Karachi behind the creation of
Pakistan. HBL Company is in the same city that has become quid in August 7, 1948
and the figure of a savage and progress for the people of Pakistan.
HABIB Bank was submitted once innovative banking services. This was built in the
installation of mainframe freely in Pakistan, followed by the first ATMs, and more
recently, and utilities world wide web within the banking willingness 1,425 local
branches.

Continue...

Towering bank located in the monetary and trade profession of Pakistan has remained
unchanged over the decades. It symbolizes the effort of the name and thinking by
the apartment based company that dominated the horizon for 35Years Karachi.

Through HBL management results, as we continue to build on our record and we strive
in our pursuit of excellence are committed to meeting the needs of our customers
and employees alike. HABIB Bank we strive to ensure customer satisfaction by
providing high quality banking services. This is made possible by the
professionalism of our employees, with all the necessary training and opportunities
to enable them to reach their full potential.

When the HBL PREEDY PORT recognized:

This branch scheduled May 10 1952 has been recognized for an easy way combined
commercial tremendous addition to the residents of the HBL branch (BANNU), in
addition to providing a common set of banks to citizens and nearby areas. At this
time the bank's website. 

OBJECTIVES/GOALS OF HBL:

1. On the road in the direction of private savings in public funds to transform

the creative pro ducts similar and ensure their accessibility. Agriculture is also
to promote social and economic develop through the effective contribution of the
private sector, with the public sector in the province.

2. Help between urban areas in addition to creating jobs, especially in rural

areas in the province. Moreover, guide and serve the people of Pakistan abroad to
assist in the investment of foreign savings to effectively and productively in the
province, as is the case in other parts of Pakistan.

3. Create the diverse uses to collect sound basis for the use of idle funds and
investment in new and existing business, especially in the high technological sell
the asset-based agriculture abroad directed along with the engineering project to
maximize returns warranty.

4. Participatory, look at the percentage of land in the Pakistani capital through a

tender on the occupied resources in the most important exhibition in the country,
and pays in the end it means for the purpose of establishing a scholarship in the
province.

Basic function:
• Acceptance of deposits:
• Current account
• Saving account
• Fixed Deposit Account
• Loans are made:
• Receivables
• Overdraft
• Providing electronic QARZE-belle

Jobs agency:

• Checks for collection

• The transfer of funds to one place to another.
• Act as an agent or representative of his clients
• A set of negotiable instruments
• provide guarantees and compensation
• granting the letter of credit
• Salaries and pensions of staff and the defense staff of the Federal / Provincial
address.
• Assistance in Agriculture

Public utility:

• collect utility bills

• The sale and collection of bonds Award
• Travelers checkup version
• Provide Business Information
• To act as referee
• financing foreign currency exchange
• Feasibility reports of small industrial units set up
• The move to collect fees and money to people for "hajj" pilgrimage provide
services.

ORGANIZATIONAL STRUCTURE:
Building HBL:
In the current operator of the bank there is one central and 23 regional offices
and branches in 1439, in Pakistan. The President of the Committee and executives
ensure that the bank's business. Each headed by a regional headquarters by the CEO
and the support of the Director-General of Operations and Support Services
Director-General. Regional headquarters controls the branches in their area.
Operations consist in the outside of the 65 main branches, branches, two
representative offices and two subsidiaries. President from the head office in
Karachi, and officers from the West governs with the support of senior management.
And functional responsibilities are divided banks into seven groups known as
International Operations Group
Corporate banking, investment and financial group
Retail Banking and Group Process
Financial, audit and management of the Group
Group assets therapeutic management & Group credit policy
Corporate Banking and Financial Institutions Group and project financing
CONTINUE...

In addition to the President also public oversight authority manages the

International Group operations separately.
While the senior executive vice president is oversee the rest of the functional
groups.
Each Executive Vice President is first individually responsible for a group
assigned to him.
At the provincial level there are regional headquarters by regional CEOs (RCA) led.
And help each RCE by General Motors, GM, and Operations Support Services.
RCE are also branches of control.
Department management layers that were removed Offices ago, who worked fall under
the control of the branch offices.
This happened as a result of the policy of the beginning of the new changes in the
organizational structure. 

ORGANIZATIONAL STRUCTURE OF HABIB BANK LIMITED

CEO of the company and president

then
7 members of the Board of Directors
then
G. E, G. E IOBG, CPOD G. E, G. E computer, RBG G. E, G. E CIRB, ARM G. E AGA
Chairman of the Department of Information Technology
then
Head of Human Resources Head of Finance
then
Senior Vice President
then
Vice president
then
Assistant Vice President

Continue...

&
Office first row
&
Office second row
After that
Third grade office
&
Clerks
&
Non-working

BOARD MEMBERS:

 G. E Group CEO
 IOBG international offshore banking group
 CPOD institutional planning and organization
 Computer credit policy and company secretary
 Range of banking services to individuals RBG
 Banking Group of companies and institutions CIRB
 ARM improving asset measures
 AGA and public information control
FUNCTIONS OF HABIB BANK LIMITED WHERE I DID MY INTERNSHIP
THE BASIC PURPOSE IS TO ACHIEVE SOCIAL AND ECONOMIC HBL PERFORM THESE IMPORTANT
TASKS.
 COMMERCIAL BANKING
 BANKING
 INVESTMENT BANKING
 RETAIL BANKING
 ISLAMIC BANKING
Commercial Banks:
Operating in the mid-market companies largely supports the nakedness of the
country. Traditionally, this was part of the power tower of HBL's work.
During the 90 direct exchange of liberalization of the sector in Pakistan and
democracy in the manufacture of polished intensified discipline to banks in an
unknown sector appearance. The old administration in some of these banks made up of
members of the HBL.

They knew not only the supermarket, but also was dedicated to the shortcomings of
the HBL. Between the polished set-up, they were gifted to these defects race began
HBL customer base for emphasis.
With customers electoral HBL opening the way to migrate to banks a new project, and
this is at the bottom of the super low share HBL Market.
During fiscal year 2000 HBL management is confident to commit this issue. From
then, it was the establishment of commercial banking services to bring focus on the
professional needs of customer’s middle market.
Founded in November 1, 2000 commercial banking services. In frank 0.18 commercial
centers and sub-centers of work put in Karachi, Lahore, Faisal, Sialkot and
Gujranwala.

Objectives/Goals:

The naughty objectives of the establishment of commercial banking services:

• First, to stop the erosion of its market share in the middle part of the market.
• Second, in order to regain lost market share
In order to achieve the objective mentioned strategy for the development of the
commercial banks as the industry adopted the "Trade Finance Bank" for their
clients.
The reason behind this strategic decision is to take advantage of the current
marketing knowledge.
And strong communication with customers is in the middle market, and loyalty to the
brand HBL.
Production line of commercial banking services includes:

Fund facilities:

• The financial operation of the working capital requirements (RF)

• Against Financial Credit packing the pre-shipment (FAPC)
• Against external financial bills for the post-shipment (FAFB)
• Financial imports of goods (FIM)
• Financial receiving against the Trust (FATR)
• Medium-term loans and financial demand (DF)

Not to fund facilities:

• Letter of Credit (LC)

(A) DA (unseen)
(B) DP (sight)
• Letter of Guarantee (LG)

It involves the successful implementation of a strategy to address the following

key issues:
• Develop sales that have been sought companies strongly culture
• improve counter service
• reduce the time needed to make credit decisions
• Staff training on credit and improve selling skills

The following initiatives have been taken to address the problems mentioned above:
Fictionalization branches in two main areas:
• Marketing; and
• Activities

Implementation of organization and Centers and below the level, where there are two
main areas in the operations:
• Trade
• combat any cash transfer service
• De layers of processing credit guarantee a quick settlement of the credit
decisions
• Create teams to manage relations in all commercial banking centers to focus on
the purchase of business
• Create credit management departments at all centers to improve risk management
• Staff training in the following key areas:
(A) Credit (b) Literacy commercial services © Computer

The impact of the steps:

The decision to pay for the preparation of commercial banking services outside.
Proof of this is the following results:
• Improve customer interaction by the branch management has now become possible
after the separation of operations and marketing at the office level.
• decentralized credit authority and simplify the processes that led to a decrease
processing time. Currently, decisions in this area are probably the most efficient
in the market.
• Our strategy has allowed us to achieve our first goal. This trend has been
reversing the erosion of our market share. We should now look to regain market
share.
Commercial banking is making progress with the improvement not only in terms of
business but also in the atmosphere. And it is updated to come up with a view to
giving a professional look to all commercial banking centers obsolete.
Corporate Banking:
It offers a range of banking services to corporate customers and institutions and
large companies in Pakistan and 10 banking centers specialized for companies in all
major cities.
Break portfolio consists of more than the biggest names in the market and Veer
Islamic banking:
The Bank has Khyber first step towards Islamic banking and for this purpose has
been established Islamic Banking Division to complete the necessary organizational
and operational procedures, paving the way for the beginning of Islamic banking in
the sidewalk specialized branches.

III task HBL:

Its mission is to be recognized as the leading financial institution in Pakistan is
also a dynamic international banking in emerging markets, and providing our
customers with a distinct range of innovative products and services, and provide
the highest value to our stakeholders - shareholders, customers and employees.
NEW KNOWLEDGE ACQUIRE
Truthfully speaking everything was new to me inside HABIB Bank limited while I had
a good Bookish knowledge also truthfully speaking it was totally different from the
practical knowledge of the banking. With the Grace of “ALLAH ALMAIGHTY” that I be
able to learn every section of the Bank.

WHAT I LEARAND DURING INTERNSHIP:

The most important thing I have learned is that the difference between the
behaviors of civil servants. And also learn more of the administrative work and HBL
below.

Open section account:

I have three days from the 1st Division to open the account. Because the area where
I performed procedure, and people are not well educated, and that is why, when a
person is eligible to open an account, the director pointed out to me this man.

I accompany will be filled this man and the form to open an account for me and the
legal requirement entire completeness me before. In the past, use the HABIB Bank
and the old type of business, but now is the use of a new company from opening an
account.

There were five ticks are required for the old type of business, but the new
company would only require one side.
Cleanse the Ministry of Foreign Affairs:

Last method:

I work, I have learned through my work in the cleaning section of how to collect
different checks from various banks. When I learned that how to transfer these
checks many of the same banks. Held the main branch of NBP was in BANNU, a meeting
every day for the mutual transfer.

A representative of Osama bin Laden, ABL, AL FALAH Bank, Bank of Khyber and HBL
will hold the mutual transfer of checks.
He was "Mr. IRFAN" responsible for this section. A Sahib gave me a lot of
attention.
The new way:

At present, this activity is across NIFT.

REMITANCES section:

He also worked in the transfers section. In Section I learned how to transfer money
from one place to another transfers. In this part I've learned,

1: Draft Applicant.
2: ON TRANSFOR line.

With every transaction charged a committee to sender?

Commit (d.d) from 1 to 1lack is Rs. 160.
Costs are in (d.d) ratio is calculated to 1lack. Commit (O.T) is Rs 350.

CRITICAL ANALYSIS:

During the training it was my main goal is to provide a scientific (in theory) for
a variety of practical situations. The practical application of analytical presents
a problem, while in contact with the theory in practice. This allows practical
versus theoretical analysis requires a different approach. This part of the report
is the essence of the training, and this will help to better understand the
environment of the bank through the creation of a relationship between what is
written in books and what is really going on in the fields. The theory on the books
is in cases that have not moved in this way.

In some cases, it is out with a small modification theory, but in other cases, the
theory has nothing to do practice anything.
The accounts are preparing a working paper banks, but part of the working paper
prepared as trial balance. Are dealing with loan guarantees in the same way as in
the theory says such a mortgage, foreclosure, convincing, advances on insurance
policies or perform filtering is the same. There is some difference lies in the
types of loans in the bank, this is the theory of talking about four or five types
of loans that cash financing, overdraft loans, and so on, but in fact there are
more types used by the bank's operation and funding, and funding requirements etc.
all other concepts of remittances, accounts and foreign currency deposits, letters
of credit are consistent with the theory approx.

The bank balance is different from that of a typical company. You will not find the
inventory, debtors or creditors. Instead, as part of the assets, and see mostly
loans and investments, and on the liability side, you'll see the deposits and
loans.

CONCLUSION to me,
It gives the theory to understand the direction of the processes and terminology
that goes best business practices around the world in a broader on any aspect of
the possible scenarios of vision. On the contrary, my work specifically, and
enclosed in a bowl.

Financial Analysis:

Financial analysis is to take the process of identifying the strengths and

financial weakness of the company through the establishment of proper relations
between the balance sheet and profit and loss account items, in order to make a
rational decision in accordance with the objective of organizing for this purpose
for analytical tools to use management.

To assess the financial position and performance of the business entity, financial
analyst needs to implement "checks" on the various aspects of the financial health
of the company.
A tool often used during these inspections are the financial ratio analysis, and a
couple of pieces of financial data relating to divide the amount by the other party
calculate ratios because this way we get the equation that can be useful in a
number of raw itself seems.

The company itself and outside investors (creditors and investors) on the financial
analysis of the companies. Type of analysis depends on the party on the specific
question. The nature of the analysis depends on the purpose of analysts.

Balance Sheet

As at December 31, 2008 2006 2007 2008

cash and balances with treasury banks 32465976 39683883 39631172

balances with other banks 6577017 3807519 4043100
lending’s to financial institutions 21081800 1051372 4100079
investment-net 63486316 113089261 96256874
advances-net 198239155 218960598 262510470
operating fixed assets 9054156 16024123 17263733
deferred tax assets-net 172373 0 0
other assets-net 11031450 17868761 19810476

342108243 410485517 443615904

Liabilities

Bills payable 7089679 10479058 10551468

Borrowings 23943476 39406831 22663840
deposits and other accounts 257461838 292098066 330274155
sub-ordinate loan 1597440 479232 0
liabilities against assets subject to finance lease 0 0 0
deferred tax liabilities-net 0 1180162 437137
other liabilities 11171496 11722493 21253250

301263929 355365842 385179850

Net assets 40844314 55119675 58436054

Represented by:

Share capital 5463276 6282768 6282768

Reserves 24662426 34000638 36768765
Inappropriate profit 5530973 5130750 9193332
35656675 45414156 52244865
Surplus on revaluation puff assets-net of tax 5187639 9705519 6191189
40844314 55119675 58436054

Profit and Loss Account

For the year ended December31, 2008. 2006 2007 2008

Mark-up/ return / interest earned 25778061 31786595 40043824

Mark-up/ return / interest expensed 4525359 7865533 11560740
Net mark-up/ interest income 21252702 23921062 28483084

Provision for diminution in the value of investments-net 121197 105269

2683994
Provision against loans and advances-net 1014540 2959583 1335127
Bad debts written off directly 47000 199 0
1182737 3065051 4019121
Net mark-up/ interest income after provision 20069965 20856011 24463963
Non mark-up/ interest income
Fee, commission and brokerage income 2311235 2634610 2866729
Dividend income 811801 632300 617554
Income from dealing in foreign currencies 692010 693408 727564
Gain on sale of securities-net 605865 1500865 740429
Unrealized loss on revaluation of investments
classified as held for trading -13105 -103198
Other income-net 570505 1000149 942362
Total non-mark-up/ interest income 4991416 6448227 5791440
25061381 27304238 30255403
Non-mark-up/ interest expense
Administrative expenses 6482592 5426116 7546878
Other provisions/ (reversal)-net 11411 -3743 10120
Other charges 66708 573830 830839
Total non-mark-up/ interest expense 6560711 5996203 8387837
Extra ordinary/ unusual item 0 0 0

Profit before Taxation

18500670 21308035 21867566

Taxation - Current year 5701443 6442356 7341257

- Prior years 593497 -1294473 -864824
- Deferred 63332 894590 16533
6358272 6042473 6492966

Profit after Taxation 12142398 15265562 15374600

Inappropriate profit brought forward 4990260 5530973 5130750

Transfer from surplus on revaluation of fixed assets-net of tax 32166 11855 21319
5022426 5542828 5152069

Profit available for appropriation 17164824 20808390 20526669

Basic and diluted earnings per share - after tax 23.4 24.3 24.47

Balance Sheet
Vertical Analysis
Balance Sheet
As at December 31, 2008 2007 2008 2007 2008

% %
cash and balances with treasury banks 39683883 39631172 9.67 8.93
balances with other banks 3807519 4043100 0.93 0.91
landings to financial institutions 1051372 4100079 0.26 0.92
investment-net 113089261 96256874 27.55 21.70
advances-net 218960598 262510470 53.34 59.18
operating fixed assets 16024123 17263733 3.90 3.89
deferred tax assets-net 0 0 0.00 0.00
other assets-net 17868761 19810476 4.35 4.47

410485517 443615904 100.00 100.00

Liabilities

Bills payable 10479058 10551468 2.95 2.74

Borrowings 39406831 22663840 11.09 5.88
deposits and other accounts 292098066 330274155 82.20 85.75
sub-ordinate loan 479232 0 0.13 0.00
liabilities against assets subject to finance

lease 0 0 0.00 0.00

deferred tax liabilities-net 1180162 437137 0.33 0.11
other liabilities 11722493 21253250 3.30 5.52

355365842 385179850 100.00 100.00

Net assets 55119675 58436054

Represented by:

Share capital 6282768 6282768

Reserves 34000638 36768765
Inappropriate profit 5130750 9193332
45414156 52244865
Surplus on revaluation puff assets-net of tax 9705519 6191189
55119675 58436054
Balance Sheet
Horizontal Analysis
Balance Sheet
As at December 31, 2008 2006 2007 2008 2006 2007 2008
Rupee's in 000
% % %
cash and balances with treasury banks 32465976 39683883 39631172 100
22.23 22.07
balances with other banks 6577017 3807519 4043100 100 -42.11
-38.53
lending’s to financial institutions 21081800 1051372 4100079 100 -95.01
-80.55
investment-net 63486316 113089261 96256874 100 78.13 51.62
advances-net 198239155 218960598 262510470 100 10.45 32.42
operating fixed assets 9054156 16024123 17263733 100 76.98 90.67
deferred tax assets-net 172373 0 0 100 -100.00 -100.00
other assets-net 11031450 17868761 19810476 100 61.98 79.58

342108243 410485517 443615904 100 19.99 29.67

Liabilities

Bills payable 7089679 10479058 10551468 100 47.81 48.83

Borrowings 23943476 39406831 22663840 100 64.58 -5.34
deposits and other accounts 257461838 292098066 330274155 100 13.45 28.28
sub-ordinate loan 1597440 479232 0 100 -70.00 -100.00

liabilities against assets subject to finance lease 0 0 0 100 0.00

0.00
deferred tax liabilities-net 0 1180162 437137 100 0.00 0.00
other liabilities 11171496 11722493 21253250 100 4.93 90.25

301263929 355365842 385179850 100 17.96 27.85

Net assets 40844314 55119675 58436054

Share capital 5463276 6282768 6282768

Reserves 24662426 34000638 36768765
Inappropriate profit 5530973 5130750 9193332
35656675 45414156 52244865
Surplus on revaluation puff assets-net of tax 5187639 9705519 6191189

40844314 55119675 58436054

Vertical Analysis
Profit and Loss Account
For the year ended December31, 2008. 2007 2008 2007 2008
Mark-up/ return / interest earned 31786595 40043824 100 100
Mark-up/ return / interest expensed 7865533 11560740 24.745 28.87
Net mark-up/ interest income 23921062 28483084

Provision for diminution in the value of investments-net 105269 2683994

0.3312 6.7026
Provision against loans and advances-net 2959583 1335127 9.3108 3.3342
Bad debts written off directly 199 0 0.0006 0
3065051 4019121
Net mark-up/ interest income after provision 20856011 24463963 65.613
61.093

Non mark-up/ interest income

Fee, commission and brokerage income 2634610 2866729 40.858 49.499

Dividend income 632300 617554 9.8058 10.663
Income from dealing in foreign currencies 693408 727564 10.753 12.563
Gain on sale of securities-net 1500865 740429 23.276 12.785
Unrealized loss on revaluation of investments
classified as held for trading -13105 -103198 -0.2032 -
1.7819
Other income-net 1000149 942362 15.51 16.272
Total non-mark-up/ interest income 6448227 5791440 100 100
27304238 30255403

Non-mark-up/ interest expense

Administrative expenses 5426116 7546878 35.545 49.087
Other provisions/ (reversal)-net -3743 10120 -0.0245 0.0658
Other charges 573830 830839 3.759 5.404
Total non-mark-up/ interest expense 5996203 8387837 39.279 54.556
Extra ordinary/ unusual item 0 0 0 0
Profit before Taxation 21308035 21867566 139.58 142.23
Taxation - Current year 6442356 7341257 42.202 47.749
- Prior years -1294473 -864824 -8.4797 -5.625
- Deferred 894590 16533 5.8602 0.1075
6042473 6492966 39.582 42.232
Profit after Taxation 15265562 15374600 100 100

Inappropriate profit brought forward 5530973 5130750

Transfer from surplus on revaluation of fixed assets-net of tax 11855 21319

5542828 5152069
Profit available for appropriation 20808390 20526669
Basic and diluted earnings per share - after tax 24.3 24.47

Horizontal Analysis
Profit and Loss Account
For the year ended December31, 2008. 2006 2007 2008 2006 2007 2008

Mark-up/ return / interest earned 25778061 31786595 40043824 100 23.31

55.34
Mark-up/ return / interest expensed 4525359 7865533 11560740 100 73.81
155.47
Net mark-up/ interest income 21252702 23921062 28483084 100 12.56 34.02
 100
Provision for diminution in the value of investments-net 121197 105269
2683994 100 -13.14 2114.57
Provision against loans and advances-net 1014540 2959583 1335127 100
191.72 31.60
Bad debts written off directly 47000 199 0 100 -99.58 -100.00
1182737 3065051 4019121 100 159.15 239.82
Net mark-up/ interest income after provision 20069965 20856011 24463963
100 3.92 21.89
Non mark-up/ interest income
Fee, commission and brokerage income 2311235 2634610 2866729 100
13.99 24.03
Dividend income 811801 632300 617554 100 -22.11 -23.93
Income from dealing in foreign currencies 692010 693408 727564 100
0.20 5.14
Gain on sale of securities-net 605865 1500865 740429 100 147.72
22.21
Unrealized loss on revaluation of investments
classified as held for trading -13105 -103198

Other income-net 570505 1000149 942362 100 75.31 65.18

Total non-mark-up/ interest income 4991416 6448227 5791440 100 29.19
16.03
25061381 27304238 30255403 100 8.95 20.73
Non-mark-up/ interest expense
Administrative expenses 6482592 5426116 7546878 100 -16.30 16.42
Other provisions/ (reversal)-net 11411 -3743 10120 100 -132.80 -11.31
Other charges 66708 573830 830839 100 760.21 1145.49
Total non-mark-up/ interest expense 6560711 5996203 8387837 100 -8.60
27.85
Extra ordinary/ unusual item 0 0 0
Profit before Taxation 18500670 21308035 21867566 100 15.17 18.20
Taxation - Current year 5701443 6442356 7341257 100 13.00 28.76
- Prior years 593497 -1294473 -864824 100 -318.11
-245.72
- Deferred 63332 894590 16533 100 1312.54 -73.89
6358272 6042473 6492966 100 -4.97 2.12
Profit after Taxation 12142398 15265562 15374600 100 25.72 26.62
Unappropriated profit brought forward 4990260 5530973 5130750

Transfer from surplus on revaluation of fixed assets-net of tax 32166 11855 21319

5022426 5542828 5152069

Profit available for appropriation 17164824 20808390 20526669

Basic and diluted earnings per share - after tax 23.4 24.3 24.47

RATIO ANALYSIS
Ratio analysis is an important and ancient of financial analysis technique.
Important and useful ratios referring to:

• simplify the concept of the financial statement and tell the whole story of
changes in financial position of the company.

• These data provide a comparison between companies. The higher proportions

associated with successful and unsuccessful company’s factors, as strong and weak
companies appear.

• This assistance in planning and forecasting can help management in the

performance of basic forecasting, planning, coordination and monitoring functions.

• These decisions help investment in the case of an investor's decision in the case
of lending bankers etc.

However, the percentages are indicative only, cannot be considered the last on the
financial situation of good and bad for the company and can also be seen among
other things.

1. Return on shareholders' equity

It is the distribution of profit after tax by the equity shareholders. ROE compares
net profit after tax in the stock holder participation.
This ratio is calculated as follows:

ROE = Profit after tax equity / share holder

2008 = 29.42%
2007 = 33.61%

2. Return on assets:

This ratio indicates the efficiency of the organization and how to make the best
use of its assets. This percentage of profits related to the assets.
And it is calculated as follows:
Profit after tax / total assets

2008 = 3.60%
2007 = 4.60%

3. Earnings per share:

N.P.A.T / number of shares outstanding

2008 = 24.47%
2007 = 24.30%
4. Return on deposits:

N.P.A.T * 100 ÷ total deposits

2008 = 4.65%
2007 = 5.22%

5. cash ratio / deposit:

"This is obtained by dividing the share capital through short-term / liabilities of

the debt."
This ratio indicates that enough money to pay off debt or not.
It is calculated as the proportion of cash = cash / current liabilities
Or
= Cash / total deposits

2008 = 11.99%
2007 = 13.58%

6. Benefits Income / Total efficacy:

Interest income ÷ total revenue

2008 = 87.36%
2007 = 83.13%

7. Net profit margin:

This rate measures the profitability of sales / interest, taking into account all
fees and taxes from the company.
This ratio can be calculated as follows:
Net profit margin of the ration = Net profit after tax / interest * 100

2008 = 33.54%
2007 = 39.92%

8. The average profit for each branch:

Net profit ÷ number of branches

2008 = Rs. 14,984,990.25

2007 = Rs. 14,878,715.4

9. Operating expenses ratio:

No description ÷ total income account

2008 = 27.72%
2007 = 21.96%

10. Total assets of turnover:

Interest / mark-up * 100 ÷ total assets is calculated

2008 = 9.02%
2007 = 7.74%

11. Risky assets sales:

Net interest income after provision for risky assets ÷

2008 = 65.98%
2007 = 68.11%

Advances to total deposits:

This ratio shows that the Bank's efficiency and encourage the borrower deposits by
customers.
According to their accounts:
The proportion of deposits in advance = advances / deposits

2008 = 79.48%
2007 = 74.96%
13. Due from bank to bank accounts receivable:

Landing in financial institutions * 100 ÷ borrowing from financial institutions

2008 = 18.09%
2007 = 2.66%

Organization analysis in comparison with its industry (or with its competitors)

It describes the uniqueness of the organization a competitive advantage against its

competitors. So HBL is also unique in its dealings with customers and also unique
in its strategy with the other competitors. Business analysis is essential for
organizations to create a mood and conditions to start or enhance a business. It
includes analysis of business strategy analysis of an organizational strategy to
create a sustainable competitive advantage

The main objective of the analysis of a competitor to understand and competitions,

or the interactive behavior of the market, it is expected between the companies in
their quest to get a competitive position in the industry.

Therefore, the HBL always analyze their competitor’s banks for this purpose, and
the factors the researchers that the impact on the competitive position and
patterns of entry and exit of researcher’s competitors in the market, however, has
a limited effort to rebottle competition between the competitors and the degree
study explored making that can predict behavior competitive market.

This omission is partly due to the limited conceptual treatment of competitive

analysis, which does not fully meet the basic precedents that affect the
competitive activity of the company registered in an integrated manner, let alone
seen them.

The intensity of competition, one of Porter (1980), five of the main drivers of the
competition, mainly for the construction of the theory is limited at the industry
level. Look in terms of the analysis of competitors in the industry, and the
strategy group is the most popular and relevant.

However, researchers who use this approach to the market largely ignored the
context in which competitors perform their struggle and the degree to which the two
companies are logged in fact directly against each other. Although the marketing
literature recognizes the importance of the market context, the contribution was
mainly in the analysis of competitors and competition on the brand or at the
individual market level and not at the farm level.

Other approaches are usually a high level of abstraction and rely primarily on
managers and perceptions of self researchers, which are often far from being, tied
competitive behavior in the market so far, some of the basic questions in the
competition remained unexplored analysis in 1985). For example, how can the
researchers are studying to explain the competition to differentiate between the
players in the industry on the behavior of their players?

How can a company, to launch an attack, evaluates the battle before the
relationship with a particular competitor and the consequent risks of this
competitor must be paid? How can a fixed meters, is the most likely to attack their
markets to discount? How to distinguish between strategic group of competitors, so
the company the necessary resources and attention to all? Finally, although the
examination-competitive and solid between the main competition is generally known,
there is no systematic attempt to complete these two subjects.

Future prospects of the organization.

Banking market structure has changed radically in the past decade, while in
contrast to the futures markets more or less maintaining the status quo. But now
the futures markets were in a position to catch up, as evidenced by the emergence
of a number of dark pools and banking companies mobilized to take advantage of the
technology is to take down the shaft.

All future aspects of the HBL must make it active and effective and efficient in
the field of banking business and gain a competitive advantage. That when this
happens, when HBL to produce new products and services to its customers.

HBL also need to introduce new technologies in the field of banking services to
their competitors and provide facilities to their customers and gain customer
loyalty. HBL and must also indicate better than their competitors service and
complete response in any industry.

HBL also need to improve the bank's automated system and the training of future
bank employees want in any area of new technology and technical progress will
facilitate HBL customers.

SWOT analysis of organization in the business sector

HBL is a very strong bank in the financial community. Money Bank customer’s safe is
used as long as they want to continue. The SWOT analysis to achieve the best
strategies in the organization's mission: opportunities and threats 1.Exploiting
and3.Avoiding strengths.2.Neutralizing weaknesses. Below is a list of SWOT HBL:

Strength point:

• Skill or ability that HBL conceiving and implementing strategies.

• HBL officers are one of the most capable professionals in the banking world.

• observed that the HBL staff communicate with their customers as if they were
personal friends and discuss their problems and their own.

• HBL has an internal computer system reliable and easy to use. It can be
automatically any information with respect to transactions in customer deposits.
• Keep HBL data properly.

• HBL has a very good security system.

• HBL is the largest commercial bank in Pakistan with a network of more than 1439
national and international branches.

• The pioneers of the banking system in Pakistan, HBL is the oldest and richest
country in the experience.

• HBL on retail banking is focused through profitable programs, products and

services that meet customers' needs.

• HBL has all the facilities of commercial areas are open, so that clients or
customers have any problems in accessing bank.

• Band is always looking to improve its services to local and foreign clients.

• Human resources development and introduction of new technology in the direction

of modern banking.

• 24-hour access to cash and pay securely high transactions.

• To have the ability to face competition in the market.

• Also participated veteran and experience of the private sector in the management
group and other interests, such as the textile industry and cement.

• Clients enjoy the services of residential areas.

Weaknesses:

• Highest number of institutions implements proper maintenance and difficulties in

providing the same environment in each branch

• Poorer system from System Restore is a threat of bankruptcy.

• Lack of customer feedback.

• Low job satisfaction.

• ATM poor service

• Inconsistencies in efficiency and work environment because of the larger

branches.

• Feeling of insecurity in the staff serves the low branches profitable as a result
of downsizing.

• Females feel uncomfortable in an environment among male workers.

• A victim of political, legal, social and cultural pressures

• Lack of professionalism in the industry, most of them employees.

Opportunities:
• Huge market potential untapped retail banking

• There is an opportunity in the opening women's banking department in the

industry, which is a completely new idea of the form, you will attract customers.

• The ability to develop value-added services along with banking relationships for
companies, and cash management services to its customers from large and medium-
sized companies.

• Increased government policy in the industry, trade show HBL opportunities to take
the benefits of these policies to meet the business effectively in men solve their
problems with cash facilities and immediate funding.

• The government and to take very bold steps to promote information technology in
Pakistan. HBL has a chance to improve the technology.

• a large international network that can be used mainly focused on trade with
Pakistan trading tap other markets. In addition, it will be enhanced services such
as Cross / external financing for corporate clients.

• Feedback from customers on products and various accounts have really improved the
bank's performance and future climate is encouraging other policies.

• HBL also has the potential to become new technological developments, such as the
expansion. Story banking and banking facilities online to serve customers more
efficiently, especially

• E banking facility is also a chance that a thriving commercial and in foreign

countries, can also be here if it is taken HBL initiatives.

• Reduce Moreover mediation possible costs, to improve the technology.

• Through efficient team management experience, HBL may also extend to improve poor
foreign and run successfully.

• Offers Habib Bank Limited the opportunity to take advantage of the skills and
efficiency in the rental business.

Threats:

• increase the area of access to the difficulties faced by the organization of

high-performance area.

• Consolidating banks

Conclusions and recommendations for improvement

I propose a recommendation

1) I will make more suggestions to improve the bank's performance:

2) Management should provide a better control of the staff.

3) Should provide daily newspapers and magazines there to visit employees and
customers.

4) Must provide a separate counter to accept the demand for a pilgrimage to the
harassment to overcome the customers.

5) Separate the women should fight against

6) The bank's management must be very careful while granting loans.

7) Should not be given the importance of personal interests and clients.

8) Should be taught personal credit and PR agency up in each branch carefully for
guidance and restores a complaint from a customer on the spot.

9) Online banking to be displayed in all branches.

10) Should be implemented aggressive publicity campaign through the press and
electronic media for new products and the system by initiating a strong marketing
policy.

11) New talent / should have hired professionals to deal with the competing demands
in the industry.

12) Information technology needs to be improved entry in all branches efficiently.

13) The government has improved on an urgent / rational for banks to increase their
profitability.

14) Must be the financial statements more transparent and more reliable.

15) Consumer finance to capture market share in the preparation.

16) Must always be induction of staff, promotion and transfer of well-deserved.

17) Staff should be made to them compensation / salary to stimulate an equal

footing with banks of first class.