Project Report on Ratio Analysis of Soneri,Allied and NBP(2013)

Project Report on Ratio Analysis of Soneri bank,Allied bank and National bank of Pakistan   

Acknowledgements

First of all I thank my Allah Almighty, the most merciful and beneficent, who gave me strength to write and complete this project by utilizing my skills and knowledge. I am  also thankful for giving me spirit of patience, consistency and courage for writing the project. I extend my heartiest thanks to my seniors and colleagues who assisted me on every occasion to enable me to write this project. My parents, classmates and friends come next in the list of those whom I have to thank. I am responsible for errors and mistakes presented in the report and a positive and constructive criticism will always be greeted with warmth.

 Executive Summary

The present study has been conducted over the topic project report on ratio analysis of Soneri bank,Allied bank and NBP (103) Financial ratios analysis helps the current and previous selected company’s performance. With the help of these financial tools we can judge any company’s financial position and performance. Most of the companies follow the financial ratio analysis in order to improve their running system as per ratio result. Ratio analysis is the vital tools of financial analysis as well as financial analysis itself are an essential part of any business.Therefore the project report on ratio analysis of Soneri basnk,Allied and NBP is presenting the true picture of three banks regarding to their ratio result.

Ratio Analysis of Soneri,Allied and NBP

Ratio analysis is an important tool of financial statement analysis. It is very useful for understanding the financial position of the any company. All stakeholders like investors, management and creditors may use the ratio to analyze the financial situation of the company for decision making purposes. Hence the current study has been conducted over this topic, and has selected Soneri Bank, Allied bank and National bank of Pakistan.

Data was collected using three official websites of the banks under study and required documents related to my study were downloaded. The present study has been complied with the help of secondary data that was collected from the mentioned sources. The study has found some true points regarding the three banks given here under:

  1. The study of ratios shows that Allied bank’s ratio is high is at top position while NBP is second in gaining net profit and Soneri bank is at third position in the comparison of net profit margin ratio.
  2. Operating cash flow ratios study shows that NBP is at last position in generating cash flows whereas Soneri bank is at top position in this field.
  3. The study of gross spread ratio shows that Soneri bank and Allied bank ratios are decreasing in the year 2011 as compare to NBP. NBP ratio is at the top position.
  4. NBP’s non-interest income is higher than Soneri bank and Allied bank whereas Allied bank is standing at third with lowest ratio in the year 2011.
  5. The study of spread ratio shows that NBP ratio is much higher and better than other two banks whereas Allied bank is at the second position and Soneri bank is at third in the comparison.

Introduction of the Project

We know that the analysis of financial statements as well as interpretation of financial finding of particular period of operation with the help of using ratio is termed as ratio analysis. Therefore ratio analyses are hereby used to find out the financial soundness of particular organization. Ratio analysis is holding various outcomes for stakeholder like, creditors, debtors, investors as well mangers.  Ratio analysis is very necessary to build the relationship between two accounting figures to highlight the important information to the management or other users, who could analyze the business situation, company financial performance.

Ratio analysis facilitates the accounting information to be summarized and simplified in a required form and highlights the interrelationship between the facts and figures of various segments of business. Ratio analysis helps the company to remove all types of wastage and inefficiencies.

This study is also going to investigate the mentioned banks financial performance with the help of ratio analysis.  For main reason for conducting this research is to find out which bank has good financial strength over other two banks.  All the below mentioned objectives will be achieved with the help of secondary data.  Therefore secondary data will be collected from the banks websites like annual reports etc.

 Significance

The study provides various benefits to all stakeholders like credits, investors, debtors as well for bank management. With the help of study findings, investors will be able to get good decision before investment in any selected bank (decision related to investment) after study the result of this research. With the help of this ratio analysis the bank management will able to concentrate in reducing non mark-up interest expenses, taxes, interest expenses and improve their efficiency.

The study will also help the bank management to effectively discharge their functions such as planning, organizing, controlling, directing and forecasting. At the end this study will also help the readers to understand how ratio analysis plays important role to measure any company financial performance.

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One Comment

  1. Mariam Kainat November 21, 2013 Reply

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