Internship Report

Ratio Analysis:
The financial statement of an existing concern or future projections for a proposed investment may be
analyzed through calculation of a number of financial ratios. So, I like to use this ratio analysis as one of
the most important financial tools and techniques. Many types of financial ratios may be calculated and
used. But the purpose for which the analysis is made will suggest emphasizing one set of ratios in
preference to others. Some important ratios are given below:

Table : 2.10.1 Ratio Analysis

Year-2009 Year-2008 Year-2007 Year-2006

A. Performance Ratio % :

1. Return on Average Assets (before tax) 3.89 2.9847 1.74 2.70

2. Return on Average Assets (after tax) 2.30 1.65 0.38 1.37

3. Return on Average Equity 30.06 25.12 5.54 21.39

4. Net Interest Margin(Avg) 6.36 4.78 4.39 4.39

5. Net Interest Margin 5.20 4.46 3.88 4.06

6. Return on investment 16.01 15.72 8.80 10.02

B. Asset Quality Ratio % :

1. Non performing loan to Total Loan 2.20 2.84 5.06 5.03

2. Loan Loss Reserve to Total Loan 2.93 2.83 4.45 2.50

3. Loan to deposit 76.23 77.04 79.42 74.03

 C. Capital Ratio Or
Regulatory Capital Ratio % :

1. Total Risk Based Capital Ratio 12.83 11.91 12.42 14.79

2. Tier 1 Risk- Based Capital Ratio 9.80 10.39 10.95 13.58

3. Leverage Capital Ratio: 8.78 1042 10.98 9.76

4. Average Equity to Average Assets 7.64 6.58 6.91 6.40

Reference: Annual report of JBL 2009.

Graphs of Different Ratios:

Table : 2.10.2 Performance Ratios

Year-2009 Year-2008 Year-2007 Year-2006

A. Performance Ratio % :
1. Return on Average Assets (before tax) 3.89 2.9847 1.74 2.70

2. Return on Average Assets (after tax) 2.30 1.65 0.38 1.37

3. Return on Average Equity 30.06 25.12 5.54 21.39

4. Net Interest Margin(Avg) 6.36 4.78 4.39 4.39

5. Net Interest Margin 5.20 4.46 3.88 4.06

6. Return on investment 16.01 15.72 8.80 10.02

Reference: Annual report of JBL 2009.

Fig: 2.10.1 ROAA (before tax)

Return on Average Assets(before tax)

00

2.7 3.89
Year-2009
1.74 2.98
Year-2008

Year-2007

Year-2006
Fig: 2.10.2 ROAA (after tax)

Return on Average Assets(after tax)

2
2.3
1 1.65 1.37
0.38
0
Year- Year- Year- Year-
2009 2008 2007 2006
Return on Average Assets(after tax)

Fig: 2.10.3 ROAE (after tax)

Return on Average Equity (after tax)

35 30.06
30 25.12
25 21.39
20 Year-2009
15 Year-2008
10 5.54
Year-2007
5
0 Year-2006
Return on Average Equity (after tax)
Fig: 2.10.4 Net Interest Margin (Average)

Net Interest Margin (Average)

00
4.39 6.36
Year-2009
4.39 4.78 Year-2008

Year-2007

Year-2006

Fig: 2.10.5 ROI

Return on Investment

0
10.02
16.01
Year-2009

8.8 Year-2008

Year-2007
15.72 Year-2006

References: Annual Report of JBL 2009.

Comments: From the above financial performance ratio we can say that financial performance of
Jamuna Bank Limited is increasing year by year such as

return on average assets (before tax) ratio in 2008 is 2.98% and in 2009 is 3.89% and return on average
assets (after tax) ratio in 2008 is 1.65% and in 2009 is 2.30% and return on average equity ratio in
2008 is 25.12% and in 2009 is 30.06% and net interest margin(avg) ratio in 2008 is 4.78% and in 2009
is 6.36% and net interest margin ratio in 2008 is 4.46% and in 2009 is 5.20% and return on investment
ratio in 2008 is 15.72% and in 2009 is 16.01%.