Chapter: 5

(Financial Analysis)

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 5.1 Company Highlights
Taka in BDT. Million
Particular Year 2014 Year 2013
Authorized Capital 10,000.00 10,000.00
Paid Up Capital 5,160.67 4,487.54
Reserve and Retained surplus 5,650.00 4,393.40
Total Shareholder’s Equity 10,810.67 8,880.94
Deposits (Core & Bank) 114,635.13 97,485.61
Total Liabilities 128,683.91 106,282.01
Total Liabilities and Shareholder’s Equity 139,494.58 115,162.95
Long Term Liabilities 32,922.17 32,618.54
Loan and Advances 77,899.79 67,669.38
Investments 39,963.54 31,392.20
Property, Plant and Equipment 2,278.50 2,195.05
Total Asset 139,494.58 115,162.95
Earning Asset 74,563.30 66,608.33
Net Current Asset 71,648.34 61,412.87
Table 15: Company Highlights (Source: Annual Report of JBL 2014)

Basic Market Information

Face value 10.00
Market lot 1
52 week ‘s Range 9.7-13.7
Total No of Securities 614,119,386
Table 16: Basic Market Information (Source: Jamuna Bank Website)

Graph 6: Closing Price (Source: Dhaka Stock Exchange)

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 Graph 7: Yearly Price Trend (Source: Dhaka Stock Exchange)

5.2 (Five) Year key Financial Data & Ratio of JBL

Shareholder’s Information
Taka in BDT. Million
Particulars Yr 2014 Yr 2012 Yr 2012 Yr 2011 Yr 2010

Income Statement Information

Interest Income 10,269.61 9,697.92 9,626.68 8,473.44 5,207.52
Interest expencec 8,838.96 8,078.04 7,787.48 6,310.59 3,726.52
Net Interest Income 1,430.65 1,619.88 1,839.20 2,162.85 1,481.00
Income from Investment 3,267.68 2,660.31 2,007.15 1,404.67 1,152.79
Non Interest Income 1,392.31 1,355.47 1,438.77 1,296.37 1,112.78
Non Interest Expencec 3,021.83 2,666.75 2,078.22 2,046.50 1,335.61
Net Non-interest Income & Investment Income 1,638.16 1,349.03 1,367.70 654.54 929.96
Profit before Provision and Tax 3,068.61 2,968.91 3,206.90 2,817.39 2,410.96
Provision for Loans and Asset 1,221.43 684.02 1,126.38 347.39 344.44
Profit after provision before Tax 1,847.41 2.284.89 2,080.52 2,470.00 2,066.52
Contribution to Jamuna Bank Foundation 36.95 22.85 20.81 12.35 10.32
Tax including deferred tax 463.31 1,126.85 1,017.66 1,127.46 990.18
Profit after contribution to foundation and tax 1,347.12 1,135.19 1,042.05 1,330.19 1,066.02

Balance Sheet Information

Authorized Capital 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00
Paid Up Capital 5,160.67 4,487.54 4,487.54 3,648.40 2,230.09
Reserve and Retained surplus 5,650.00 4,393.40 3,837.29 3,633.11 4,178.10
Total Shareholder’s Equity 10,810.67 8,880.94 8,324.83 7,281.51 6,408.1
Deposits (Core & Bank) 114,635.13 97,485.61 79,623.13 70,508.05 60,673.56
Total Liabilities 128,683.91 106,282.01 101,353.68 79,783.62 63,605.71
Total Liabilities and Shareholder’s Equity 139,494.58 115,162.95 109,678.51 87,065.13 70,013.90
Long Term Liabilities 32,922.17 32,618.54 15,395.83 13,788.24 11,564.26
Loan and Advances 77,899.79 67,669.38 54,887.03 56,611.79 49,734.80
Investments 39,963.54 31,392.20 39,118.93 16,314.93 10,891.02
Property, Plant and Equipment 2,278.50 2,195.05 2.082.03 1,971.72 1,822.66
Total Asset 139,494.58 115,162.95 109,678.51 87,065.13 70,013.90
Earning Asset 74,563.30 66,608.33 58,969.03 62,461.62 50,886.80
Net Current Asset 71,648.34 61,412.87 53,959.73 54,381.79 44,476.30

Credit Quality Information

Volume of Non-performing Loans (NPLs) 4,422.15 5,133.76 5,337.87 1,618.73 905.52
% of NPLs to Total Loan and Advances 5.68 7.59 9.73 2.86 1.82
Provision for Un-classified Loans 1,096.86 937.67 814.67 804.87 718.17
Provision for Classified Loans 1,796.86 2,256.68 1,698.25 627.30 453.76

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 Table 17: Five Year Key Financial Data (Source: Annual report of JBL 2014)

5.3 Financial Highlights

Taka in BDT. Million
Particular Year 2014 Year 2013
Gross Revenue 14929.60 13,713.70
Operating Income 6,090.62 5,635.66
Profit before Tax 1,847.38 2,284.89
Profit after Tax 1,347.12 1,135.19
Total Capital 11,058.24 9,259.80
Shareholder’s Equity 1,0810.67 8,880.94
Deposits 114,635.13 97,485.61
Investments 39,963.54 31,392.20
Loan and Advances 77,899.79 67,669.38
Investments 39,963.54 31,392.20
Premise , Furniture & Fixture 2,278.50 2,195.05
Total Asset 139,494.58 115,162.95
Import and Export 124,898.40 115,162.95
Return on assets after Tax (%) 1.06 1.01
Classified Advance (%) 5.68 7.59
Return on Equity (%) 13.68 13.20
Liquidity Ratio (%) 17.11 14.84
Capital Adequacy Ratio (%) 11.21 11.10
No. of Deposit Account’s 605,039 525,347
No. of Advance Account’s 28,042 24,654
No. of Employees 2,204 2,138
No. of Branches (Including SME center) 97 91
No. of ATM 167 140
Table 18: Financial Highlights (Source: Annual report of JBL 2014)

5.4 Distribution of Share in 2014

Particulars Number’s of Share % of Share
2014 2013 2014 2013

Sponsor’s 3,216,544.160 2,608,273.730 62.33% 58.12%

Financial Institutions 558,532.940 473,593.740 10.82% 10.55%
Foreign Investors 6,5893.580 4,369.200 0.31% 0.10%
Non-Resident Bangladeshi
General Public 1,379,006.430 1,401,299.950 26.72% 31.23%
Total 5,160,667.110 4,487,536.620 100.00% 100.00%
Table 19: Distribution of Share in 2014 (Source: Annual report of JBL 2014)

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 Graph 8: Share Holding Position (Source: Annual report of JBL 2014)

5.5 Total Capital Structure- JBL

Taka in BDT. Million
2014 2013
Core Capital (Tier-I)
Paid Up Capital 5,160.67 4,487.54
Statutory Reserve 2,966.02 2,596.54
Right Issue subscription money
Retained Earning 983.75 679.25
Total :Tier-1 Capital 9,110.44 7,763.33
Supplementary Capital (Tier-II)
General Provision maintained against unclassified Loan & Advance 721.72 645.33
General Provision maintained against off Balance sheet exposure 376.02 292.34
Revaluation Reserve of HFT Securities (50% of Total Revaluation reserve) 318.32 27.05
Asset revaluation reserve (50% of Total Revaluation reserve) 531.75 531.75
Tier -II Capital 1,947.81 1,496.47
Tier-I & Tier –II Capital 11,058.25 9,259.80
Total risk Weighted Assets 98,298.68 83,421.38999
Required Capital (%) 10.00% 10.00%
Required Capital Amount 9,861.20 8,342.14
Capital Adequacy Ratio maintained (%) 11.25% 11.10%
Core capital to Risk Weighted Assets 9.24% 9.31%
Supplementary Capital to Risk Weighted Assets 1.98% 1.79%
Table 20: Total Capital Structure (Source: Annual report of JBL 2014)

5.6 Market Price Information 2014

Month DSE Price index Volume in CSE Price index Volume in Total Volume of
Yr 2014 High Low million Tk High Low million Tk DSE & CSE
January 18.50 10.90 44074 17.90 15.50 7.25 51.99
February 18.00 10.80 50.60 18.30 15.70 5.06 55.66
March 18.00 11.00 91.30 16.30 14.00 3.63 94.93
April 18.40 11.20 56.55 16.10 12.50 6.58 63.13
May 17.60 11.20 52.02 13.40 12.10 2.97 54.99
June 19.00 10.50 59.94 12.70 11.50 2.85 62.51
July 16.30 10.80 24.49 12.80 11.50 5.04 27.34
August 17.00 10.70 185.48 12.70 11.60 5.04 190.52
September 17.90 10.80 64.27 13.70 11.80 4.18 68.45
October 18.00 10.80 86.96 14.40 12.50 4.27 91.23
November 17.50 10.80 26.83 13.20 11.70 2.78 29.61
December 13.10 10.90 23.66 13.80 11.50 3.19 26.85
Table 21: Market Price Information (Source: Annual report of JBL 2014)

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 Graph 9: Market Price Information of DSE & CSE (Source: Annual report of JBL 2014)

5.7 Credit Distribution

From previous 5 year annual report I have analyzed some important data which is related to credit
activities of JBL. The analyzed information is shown below by creating different chart graphs etc.:

 Year wise Deposit

Taka in BDT.
Million
Year Total Deposit
2010 60674.56
2011 70508.05
2012 79623.13
2013 97485.61
2014 114,635.13
Table 22: Year wise Deposit (Source: Annual report of JBL 2014)

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 Graph 10: Year wise Deposit

Year wise deposits of JBL are increasing year by year. In 2010 the total deposit was TK. 60674.56
million. It was increased to TK. 114,635.13 million in 2014. From the graph it is seen that growth rate
from year 2013 to 2014 is 23% which indicates positive perception toward JBL from clients point of
view.

 Year wise Loans & Advances

Taka in BDT. Million

Year Total loan and Advances

2010 49,734.80
2011 56,611.79
2012 54,887.03
2013 67,669.38
2014 77,899.79
Table 23: Year wise loan & Advances (Source: Annual report of JBL 2014)

Graph 11: Year wise loan & Advances

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Here we see that total loans & advances of JBL are increasing 2008 – 2011. This is because of their
attractive and flexible loan packages. But in 2012 their total loans and advances is decreased by
3.14% compare to 2011. the main reason of decreasing loans and advances, the competitive bank
come up with a new loan policy which is more attractive than our loan policy.

5.8 Sector Wise Credit Distribution

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 Graph 12: Sector Wise Credit Distribution

From the figure it can easily be said that JBL provides more loan in Trade service sector. In 2014 it
provided total loan and advances to several sector. But in agriculture sector they discourage to sanction
loan because they think this sector is risky, in 2014 JBL provide loan in agriculture sector only 5%.

5.9 Geographical Location Wise Loan & Advance

Graph 13: Geographical location wise and & advances

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In above chart we see that JBL provide huge amount of loans and advances in Dhaka division. They
provide 69.44% loans and advices in Dhaka division. JBL also provide their loans and advances
16.67% in Chittagong division and and the others division they provide fewer percentage of loans and
advances, as 9.75% in Rajshahi division. 1.69% in Sylhet division, 1.53% in Khulna division, 0.67% in
Rangpur division, and 0.25% in Barisal division.

5.10 Classification Status of Loan

Classification Status % Total Loan Outstanding ( In Million)

Standard 93.45% 7,279.63
Special mention Account 0.87% 68.13
Sub-standard 0.50% 38.76
Doubtful 0.43% 33.19
Bad/Loss 4.75% 370.27
Total 100.00% 7,789.98
Table 24: Classification status of Loan (Source: Annual report of JBL 2014)

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 Graph 14: Classification Status f loan

5.11 Interest Earn on Lending

Year Total Interest on Lending

2014 10269.61

2013 9697.92

2012 9626.68

2011 8473.44

2010 5207.52

Table 25: Interest earn on Lending (Source: Annual report of JBL 2014)

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Graph 15: Interest on Lending

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