Space Matrix

Environmental Stability Rating

1. Banking sector is experiencing high inflation and political instability -4.0

2. Competitive Pressure is high in service industry -2.0

3. Price range of competing products -3.0

4. Technological change -2.0

5. Risk of defaults -4.0

6. Privatization of banks -4.0

Total -19.0

SPACE MATRIX

ES Average= -19/6

= -3.167

Financial Strength Rs. In '000' Rating

1. ROIs 2.482 5

2. Cash Flow 11,787,928 4

3. Net Income 17,371,007 4

4. Paid up Capital 103,000,000 6

5. Revenues 1,715,352 3

6. Single shareholder with 74% shareholding

5

Total 27

FS average= 27/6

= 4.5

Competitive Advantage Ratings

1. Market share 7th largest bank in Pakistan -2

2. The customers feel secure when they use products and services of the bank and consider it an honest and worthwhile bank hence increasing customer loyalty -3

3. Technological advancement, online transaction and phone banking. -4

4. Highest paid up capital of 103 billion. -1

5. Largest number of corporate customers. -2

6. Active call centre available 24/7 where all customers can execute financial or non financial transactions. -4

Total -16

CA Average= -16/6

= -2.67

Industry Strength Rating

1. High profit potential in banking sector. 5

2. High growth potential of the banking/services industry. 6

3. Ease of entry into market 3

4. Increase in interest rate by SBP is beneficial for banks profitability 4

5. Huge demand for consumer financing 3