1. 1

2. 2

3. A financial statement that reflects the inflow of
revenue and the outflow of expenses during a
specific time.
The cash flow statement does not show whether
the business will be profitable, but it does show
the cash position of the business at any time.
The cash flow statement should be prepared on
a monthly basis for the first year, on a quarterly
basis for the second year, and annually for the
third year.

4. Cash flow for a business is simply the flow of cash
through the organization over time. Cash flows are
necessary for the firm to survive and prosper.
There is a significant importance of cash flow to a
business. The following are some advantages of cash
flow.
I. Income Assurance
II. Ensures Timely Payment
III. Return Ratio
IV. Keeps You Out of Debt
V. Saves Unnecessary Expenditure

5. 5

6.  It was established in 1941 having a head
office in Karachi.
 It was nationalized in 1974, but on 26th
February 2004, it has been privatized by
government of Pakistan.
 It is one of the largest banks of Pakistan
 Quaid-e-azam was the first person to open
his personal account in HBL.
6

7. “Enabling people to advance with
confidence and success”.
Mission statement:
“To make our customers prosper, our
staff excel and create value for
shareholders”.
7

8. Cash flow for operating
activities
2010 2009 2008
Profit before taxation 78% 41% 45%
Dividend income 52% 66% 0%
Loss on sale 4% 45% 38
depreciation 46% 48% 38%
Provision against non performing loans 8% 6% 27%
Gain on sale of property 66% 43% 20%
Miscellaneous expenses 37% 52% 73%
Lendings to financial institutions 7% 17% 8%
Advances 70% 17% 97%
Other assets 21% 16% 76%

9. Operating liabilityDepoists 10% 19% 9%
Bills payable 10% 4% 8%
Other liabilities 19% 17% 27%
Income tax paid 14% 93% 76%
Net investment in security 34% 43% 41%
Dividend received 27% 44% 72%
Fixed capital 67% 36% 13%
Proceeds from sale of fixed assets 47% 5% 3%

10. Minority interest exchange 10% 12% 29%
Dividend paid 19% 24% 98%
Cash and cash equivalent beginning year 50% 12% 6%
Effects of exchange rate changes 10% 28% 21%
Cash and cash equivalent at end of
year

11. STRENGTHS:
H.B.L. has very effective Network all over the country.
Every 10th Pakistani is A/C holder of H.B.L.
HBL has made huge investment in almost all the
important economic sectors of Pakistan.
HBL has introduced monthly income scheme that
provides highest interest rate.
WEAKNESS:
Centralization of all decisions.
Wide span of control.
Using old ideas in advertising.
Managers have all the powers that delay the
communication.

12. The improvement in communication channels can
attract the customers.
The upward and downward communication
improves the environment of bank
H.B.L. is investing almost 18% of its total
investment on cotton business; it should also invest in
other cash crops, i.e. Rice, Sugar
Cane, Tobacco, Wheat etc
THREATS:
The competitor banks like Standard chattered and MCB
are advertising well, which is the main threat for HBL.
The Managers of HBL do not delegate the authority to their
juniors due to which juniors can move to other banks.

13. From the report concluded that the three years
cash flows statements of the HBL shows that the
financial position of the bank is good and bank is
growing every year.
HBL was rated among first 500 banks of the world
but now it is in among 1000 banks in the world.
The HBL should prevail the system of delegation
and narrow the span of control.
If these drawbacks have removed then it will be
rated among world top ten banks.

14. HBL should prevail the system of
delegation.
Decentralization should prevail in all
branches.
HBL should narrow the span of
control.
Now a day, they are not advertising
properly therefore they should focus on
the advertisements.

15. THE END!
15