Analysis of P&L Statements

1278 Words Feb 22nd, 2018 5 Pages
This means that the bank relies more on depositing cash with treasury bank, rather than relying on its deposits to other banks.
Looking at the balance with other bank, there is a 7% decrease in 2010, and then a 17% increase in 2011, remaining almost the same in 2012. As a percent of total asset, there is a steady decrease. The bank might have better investment opportunities and thus does not feel comfortable to deposit with other banks. Also, since there is a decreasing trend, the bank does not seem to change its policy either.
UBL also followed a steady increase of cash with Treasury Bank, as a percent of total asset. The deposit with other bank does not show a particular trend, but there is more decrease than increase. Due to these ups and downs, we cannot tell for sure if the company will change its policy in near future. It seems that UBL also follows the same strategy as HBL when it comes to deposits. However, with deposits in treasury bank of 9-10% of total assets, it exceeds HBL slightly, as HBL has 8-9 % of its total assets deposited with treasury Bank
However, there is a decline in UBL’s deposits with treasury bank as a percent of total assets, but in the same year, there is an increase in the deposits with other banks. These deposits consist of 2-3 % of total assets, while in HBL it is about 4% of total assets.
UBL has a…