Ubl Research Project

Only available on StudyMode
  • Download(s) : 14
  • Published : April 24, 2012
Open Document
Text Preview
Topic 8 RESEARCH & ANALYSIS REPORT

Financial Analysis of United Bank Limited

Table of Contents
Introduction & Information Gathering.....................……………………………..3 Analysis……………………………………………………………………...6 Conclusion.……………………………………….………………………...14 Appendix A (Balance Sheet)..……………………………………………...16 Appendix B (Profit & Loss)………………………………………………..17 Bibliography………………………………………………………………..18 Key Skills Statement……………………………………………………….19 Presentation Outline including PowerPoint slides..………………………..22 Submission forms…………………………………………………………..28

2

Financial Analysis of United Bank Limited

Introduction
Topic chosen and its context For the submission of the BSc honors degree in applied accounting, I have chosen to complete my research and analysis project by analyzing the financial position of United Bank Limited (UBL) as compared to its competitors MCB Bank limited (MCB) and Habib Bank Limited (HBL). This analysis will be conducted on their consolidated financial statements for 2007. In order to carry this out, I will intently analyze the balance sheet and profit and loss statements of the three banks. I will be evaluating UBL’s current position as well as its growth over the past year in comparison to MCB and HBL. United Bank Limited is a privately owned company operating in one of the most profitable industries in Pakistan. It became private in 2002 and has shown remarkable growth since, making valiant efforts to continue this trend. It has more than 1000 branches and operates in 6 countries offering a variety of products to its customers. Reason for choosing the topic This topic sparked an interest in me largely due to the fact that I am currently employed by UBL in their budgeting, planning and MIS department. One of the functions of this department is to carry out a benchmarking analysis on a quarterly and annually basis. The results of the analysis are then viewed analytically in order for initiatives to be taken and decisions to be made by higher management for future strategies. In addition, the banking industry has shown tremendous growth in the recent past owing to more attractive spreads as compared to other parts of the world and I would like to take this opportunity to explore in detail the benefits that can be acquired by investing in this industry. Several foreign banks have realized this notion as is evident from the entrance of foreign banks. Barclays and Dubai Islamic Bank (DIB) have declared their intent to start operations in Pakistan. Barclays Bank has clearly stated that they wish to start operations with capital of US $100 million and open as many as 10 branches all over the country (http:thenews.jang.com.pk). The makings of a dynamic banking industry has also contributed to my keen interest in this field and led to my writing a research paper on this topic. This industry has also seen its share of mergers and acquisitions in the past year in an attempt to strengthen their position in the market (www.brecorder.com). The other reason for the recent growth in mergers and acquisitions is due to a regulation introduced by the State Bank of Pakistan. This states that banks by the year 2009 must operate with share capital of at least Rs 6B, which is why banks are looking to acquire or merge with other banks (www.sbp.org.pk). The interest in staying up to date with the changes/regulations and reacting in a steadfast manner to cope with requirements imposed by the State Bank is also a reason I chose this type of report. I believe benchmarking is an important practice because it lets an organization know where it stands and what it needs to do in order to become leaders in their particular

3

Financial Analysis of United Bank Limited industry. This is done through careful monitoring of the industry and making quick and researched decisions that benefit the bank as a whole. It is therefore also significant that banks be able to sustain their dominance through improved practices with the help of...
tracking img