ZTBL financial analysis

ZTBL:

ZTBL Hassan Bilal

Introduction :

Introduction Zarai Taraqiati Bank Limited (ZTBL) is the premier financial institution geared towards the development of agriculture sector through provision of financial services.

Subsidiary:

Subsidiary Kissan Support Services Pvt.(Ltd) Handles the outsourcing of the ZTBL. Takes part in non core activities of the bank.

Balance sheet(Assets):

Balance sheet(Assets ) CONSOLIDATED BALANCE SHEET AS AT MARCH 31, 2010 (Un-audited) (Audited) Note March 31, 2010 December 31, 2009 ASSETS Cash and balances with treasury banks 1,570,753 2,354,107 Balances with other banks 7,158,553 9,679,278 Investments - net 7 6,191,571 7,113,948 Advances - net 8 84,008,221 81,974,021 Operating fixed assets 1,071,360 1,073,443 Deferred tax asset - net 9 265,064 290,631 Other assets - net 10,432,961 10,169,957 Total 110,698,483 112,655,385

Notes:

Notes INVESTMENTS - NET March 31, 2010 December 31, 2009 Held by bank Given as collateral Total Held by bank Given as collateral Total Rupees in '000 Investment - net 6,188,907 2,664 6,191,571 7,111,311 2,637 7,113,948 8 ADVANCES - NET March 31 December 31 Loans, cash credits, running finances, etc. In Pakistan 91,374,232 89,396,507 Outside Pakistan - - 91,374,232 89,396,507 Less: Provision for non-performing advances (note 8.1) (7,345,244) (5,737,477) Provision for staff advances (20,767) (20,767) (7,366,011) (5,758,244) 84,008,221 83,638,263

Slide 6:

9 DEFERRED TAX LIABILITY The details of the tax effect of taxable temporary differences are as follows: March 31, 2010 December 31, 2009 Rupees in '000 Taxable timing differences on; Accelerated tax depreciation (138,322) (112,068) Surplus on revaluation of assets (62,362) (63,049) (200,684) (175,117) Deductible timing differences on; Provision against non-performing loans and advances 465,748 465,748 265,064 290,631

Balance Sheet (Liabilities):

Balance Sheet (Liabilities) LIABILITIES March 31(2010) December31(2009) Bills payable 927,792 2,059,979 Borrowings from financial institutions 10 51,257,213 51,257,213 Deposits and other accounts 6,902,918 8,718,645 Sub-ordinated loans 11 3,204,323 3,204,323 Deferred tax liability - - Deferred income 12 119,094 136,000 Other liabilities 28,274,452 27,801,327 90,685,792 93,177,487 NET ASSETS 20,012,691 19,477,898 REPRESENTED BY Share capital 12,522,441 12,522,441 Reserves 13 1,609,868 1,511,554 Unappropriated profit 5,447,183 5,007,416 19,579,492 19,041,411 Surplus on revaluation of assets - net of deferred tax 433,199 436,487 20,012,691 19,477,898

Notes:

Notes 10 BORROWINGS FROM FINANCIAL INSTITUTIONS March 31 (2010) December31(2009) In Pakistan 51,257,213 51,257,213 Outside Pakistan - - 51,257,213 51,257,213 13 RESERVES Statutory reserves Reserves for contingencies Total Rupees in '000 Balance as at January 1, 2010 1,451,554 60,000 1,511,554 Transfer from unappropriated profit 98,314 - 98,314 Balance as at March 31, 2010 1,549,868 60,000 1,609,868

Income Statement:

Income Statement CONSOLIDATED CONDENSED INTERIM PROFIT AND LOSS ACCOUNT (UN-AUDITED) FOR THE THREE MONTHS PERIOD ENDED MARCH 31, 2010 Three months ended Note March 31, 2010 March 31, 2009 Rupees in '000 Mark-up / return / interest earned 2,195,907 2,248,229 Mark-up / return / interest expensed 894,109 869,640 Net mark-up/interest income 1,301,798 1,378,589 Provision against non-performing loans and advances 166,684 (60,028) Impairment of investment - - Write offs under Government relief packages 19 - 166,703 (60,028) Net mark-up / interest income after provisions 1,135,095 1,438,617 NON MARK-UP / INTEREST INCOME Fee, commission and brokerage income 8,239 1,333 Dividend income - - Other income 782,884 870,403 Total non mark-up / interest income 791,123 871,736 1,926,218 2,310,353 NON MARK-UP / INTEREST EXPENSES Administrative expenses 1,051,390 1,024,043 provision against other assets - - Other charges 735 - Total non mark-up / interest expenses 1,052,125 1,024,043 874,093 1,286,310

Slide 10:

March31 (2010) Decemeber 31 (2009) NON MARK-UP / INTEREST EXPENSES Administrative expenses 1,051,390 1,024,043 (Reversal) / provision against other assets - - Other charges 735 - Total non mark-up / interest expenses 1,052,125 1,024,043 874,093 1,286,310 COMMUTATION TO EMPLOYEES UNDER SR-2005 15 5,592 - PROFIT BEFORE TAXATION 868,501 1,286,310 Taxation - Current 304,166 450,208 - Prior years - - - Deferred 26,254 - 330,420 450,208 PROFIT AFTER TAXATION 538,081 836,102 Unappropriated profit brought forward 5,007,416 3,280,202 Profit available for appropriation 5,545,497 4,116,304 Earnings per share - basic (Rupees) 16 0.430 0.668

Notes:

Notes March 31, 2010 March 31, 2009 16 EARNINGS PER SHARE Profit for the period 538,081 836,102 Weighted average number of ordinary shares (number in thousand) 1,252,244 1,252,244 Basic earnings per share in rupees 0.430 0.668