1.
Earnings per Share:
Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability. EPS is
calculated as: EPS = (Net Income - Dividends on Preferred Stock) / Average Outstanding Shares.
                    Earnings per Share = Net Income⁄Shares Outstanding
           Company                                   Bank Alfalah
           Years                          2016             2015              2014
           Profit after Tax        7899908          7522810           5,787,463
           Shares Outstanding      1593898          15,898,062        15,872,427
           Ratio                   4.96             4.76              4.09
The EPS of Bank Alfalah is better in all years. It indicates the earnings earned on each share of
outstanding common stock of the bank. The highest EPS is in year 2016 in which it is 4.96 that
indicates the highest earning on behalf of each share of outstanding common stock. Overall EPS
of Bank Alfalah is favorable as it is of best interest of present and prospective stockholders and
management.
 6
        4.96
 5                          4.76
                                                         4.09
 4
 0
               2016                2015                         2014
                                     Earning per Share
The graph depicts the increasing trend in EPS of Bank Alfalah. In 2014, EPS is 4.09, in 2015 it
increases to 4.76 and in year 2016, EPS is 4.96 which shows better earnings per share among other
two years.
6
     4.96
5                             4.76
                                                           4.09
4
0
            2016                     2015                         2014
                                       Earning per Share
    6.1.2. Accounts Department:
              Accounts department is a backend department of Bank Alfalah, that performs the
              following functions:
      6.1.2.1.     Reports:
                   It generates reports like Statement of Account Activity, Statement of Affairs,
                   Statement of Foreign Exchange and statement of Profit & Loss.
                   These reports can be generated at daily, weekly, monthly, quarterly or annually
                   basis as required by the bank.
      6.1.2.2.     Income and Expense:
                   The department also needs to calculate the revenues and expenses, control
                   expenditure and forecast profits every month.
6.1.2.3.   Budget:
           Formulation of yearly budgets and targets in consultation with the branch
           manager is also done by the accounts department.
6.1.2.4.   Activity Checking:
           Daily activity checking and monitoring is also done by the accounts
           department of the whole bank.
6.1.2.5.   Storage of Records:
           Accounts department also has the duty to store vouchers and system generated
           reports of the bank.
6.1.2.6.   Payments:
           The accounts department is responsible to pay vendors on behalf of the bank
           with authorization from the branch manager. It also has to amortize large
           payments and calculate depreciation of branch assets.