Liquidity

Liquidity of a business is one of the key factors formative its propensity to succeed or fail. Both excess
and shortage of liquidity affect the interest of the firm. By excess liquidity in a business enterprise, it is
intended that it is carrying higher current assets than are warranted by the requirements. Hence, it
indicates the blocking up of funds in current assets without any return. Besides, the firm has to incur costs
to carry the overtime. Further, the value of such assets would depreciate in times of inflation, if they are
left inactive. Owing to the cornering of capital, the firm may have alternative to additional borrowing
even at a consider price. On the other hand, the impact of not enough liquidity more severe. The losses
due to insufficient liquidity would be many.
For the analyzing of liquidity of selected private banks following ratios have been computed.

• Loan / Deposit Ratio

• Cash / Deposit Ratio
• Current Ratio

Loan / Deposit Ratio

According to liability management strategy bank must maintain volume, mix and cost of deposit to its
loans. To follow perfect liability management strategy bank must provide loans exact same amount of its
deposits. This derive maximum profit minimizing cost.

Loan/Deposit Ratio
140.00%

120.00% 111.53% 114.81%

105.10%
96.89% 99.99%
100.00% 93.78%95.94% 93.46%
87.11%
80.00%

60.00%

40.00%

20.00%

0.00%
2016 2017 2018

EBL BRAC Bank MTB

So, banks goal should be achieved loan/deposit ratio of 100%. For our selected banks, all of the bank’s
L/D ratio is quite promising. But in case of EBL the ratio exceeds 110% which indicated that it might
expose to liquidity risk as the amount of loans are more than the amount of deposits. On the other hand,
both Brac bank and MTB has a ratio is very good. Brac Bank’s loan management performance decreased
in term of efficiency and MTB is becoming more efficient in loan management. It also achieved L/D ratio
of 100% in 2018.
But in mid of 2018, Bangladesh Bank has slashed loan-deposit ratio for commercial banks by 1.5% to
83.5% with a view to curbing excessive lending. So, all three must change their strategy to maintain the
L/D ratio in 83.5%.

Cash/ Deposit Ratio

Cash Deposit ratio (CDR) is the ratio of how much a bank lends out of the deposits it has mobilized. It
indicates how much of a bank’s core funds are being used for lending, the main banking activity. It can
also be defined as Total of Cash in hand and Balances with BB divided by Total deposits.
Below cash/ deposit ratio is given for selected three banks.

Cash/ Deposit Ratio

9.00% 8.78%
8.70%8.72% 8.62%
8.58% 8.58%
8.50% 8.44%
8.20%
8.00%

7.50% 7.40%

7.00%

6.50%
2016 2017 2018

EBL BRAC Bank MTB

Here all three banks are performing similarly by maintaining cash/ Deposit ratio average between 8.5%.
Which is a good ratio that indicates that the banks have sufficient amount of cash if any liquidity crisis
they face in any time.

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Current Ratio
The current ratio is a comparison of a company’s current assets to current liabilities that can be used to
find its liquidity, usually as a comparison between companies in the same industry. Potential creditors use
the current ratio to measure a company’s ability to pay off short-term debt.
In terms of banks current ratios should be higher than other companies as most of the assets are current
assets. The current ratio of a good bank should always be greater than 1. A ratio of less than 1 poses a
concern about the bank's ability to cover its short-term liabilities.
In our case,

Current Ratio
5.00 1.39
1.35 1.35
4.50
4.00
3.50 1.67
1.36 1.36
3.00 MTB
BRAC Bank
2.50 EBL
2.001.67 1.72
1.55
1.50
1.00

0.50
0.00
2016 2017 2018

All three banks had a promising current ratio which very good to maintain liquidity. Among three banks
EBL is the most flexible and liquid as it has the current above 1.5 for three years. Recently Brac bank also
performing good in terms of liquidity as it achieved a current ratio of 1.67 in 2018.

Financial risk
Debt to Equity Ratio
The debt-to-equity ratio (D/E) is a financial leverage ratio that is frequently calculated and looked at. It is
considered to be a gearing ratio. Gearing ratios are financial ratios that compare the owner's equity or
capital to debt, or funds borrowed by the company.
The optimal debt-to-equity ratio will tend to vary widely by industry, but the general consensus is that it
should not be above a level of 2.0. While some very large companies in fixed asset-heavy industries (such
as mining or manufacturing) may have ratios higher than 2, these are the exception rather than the rule.

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In the banking and financial services sector, a relatively high D/E ratio is commonplace. Banks carry
higher amounts of debt because they own substantial fixed assets in the form of branch networks. As
Banks main business is to give loan and take deposits so the amount of the debt will be much higher than
other industries.
In our case, below (D/E) ratio is given for our selected banks for the period of 2016-2018.

(D/E)
2016 2017 2018

16.15

15.75
15.84
11.21

10.99

10.94
10.72
9.19

8.97

EB L BRAC Ban k MTB

Here we see that over the recent three years period EBL and Brac Bank D/E ratio is quite the same around
10 which mean every 1 unit of equity it funds 10 units of debts. But in case of MTB D/E ratio is much
higher than other to banks which is around 15.91 in average of three years period. That indicate us MTB
is taking more debt then its competitor and which means it’s more volatile than other banks in the
industry.

Non-Performing Loans
In banking, commercial loans are considered nonperforming if the debtor has made zero payments of
interest or principal within 90 days, or is 90 days past due. For a consumer loan, 180 days past due
classifies it as an NPL. Non-performing loans (NPL) have become a worrisome issue for Bangladesh.
Due to the ever-increasing volume of non-performing loans, our banking sector and the economy in
general have taken a negative turn. According to newspaper reports, NPLs have already crossed taka one
lakh crore, a first in the history of our banking sector. NPL accounts for 10.41 percent of the total loans
given. The figure was 9.31 percent in December 2018. The rising trend of the NPL is bound to have a
long-lasting negative impact on the country’s financial sector. For private commercial banks gross NPLs
was 4.87 percent.
For our selected banks EBL is performing the best as is has the lowest NPL ratios (average of 2.5%) in
last three years which is great for the overall financial performance of the bank. Brac bank is also
performing well as they had lowered the NPL (3.10%) in 2018. MTB is not that much efficient in

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performing good loan as it has the highest NPLs among three banks and it had a massive jump in 2018
which indicate financial risk for MTB in future.
Here is a Graph of the NPL Ratios of those three banks of the period 2016-2018.

6.00%
NPL
5.39%

5.00%
4.36% 4.30%
4.00%
3.56%
3.40%
3.10%
3.00%
2.69%
2.50%
2.35%
2.00%

1.00%

0.00%
2016 2017 2018
EBL BRAC Bank MTB

Efficiency
To determine selected banks performance efficiency, bank’s efficiency ratio is shown. The bank
efficiency ratio is a quick and easy measure of a bank's ability to turn resources into revenue. The lower
the ratio, the better (50% is generally regarded as the maximum optimal ratio). An increase in the
efficiency ratio indicates either increasing costs or decreasing revenues.

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In 50.00% Efficiency Ratio
44.76% 44.11%
45.00% 41.34%
40.00%
35.00%
30.00%
26.28% 26.89% 27.35% 27.94%
23.80% 24.40%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
EBL BRAC Bank MTB

terms of efficiency both EBL and MTB performed better than Brac Bank as their efficiency ratio ratios
are relatively much lower than the Brac bank. Brac bank efficiency ratio between those years were
between (41.34% to 44.11%). And it was increasing every year which indicates that Brac Bank’s costs
increased recently. So, they must decrease their cost or try to increase their revenue to become more
efficient in the market.
On the other hand, both EBL and MTB are very efficient in the market as their efficiency ratios are
between (20% to 30%). Both EBL and MTB not only performing well but also, they are reducing their
cost in recent years so that indicates a positive side for both the bank.

Profitability
Like all businesses, banks profit by earning more money than what they pay in expenses. The major
portion of a bank's profit comes from the fees that it charges for its services and the interest that it earns
on its assets. Its major expense is the interest paid on its liabilities.
The major assets of a bank are its loans to individuals, businesses, and other organizations and the
securities that it holds, while its major liabilities are its deposits and the money that it borrows, either
from other banks or by selling commercial paper in the money market.
For the analyzing of profitability of selected private banks following ratios have been computed.

 Return on Assets (ROA)

 Return on Equity (ROE)
 Net Interest Margin (NIM)

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ROA
The first key measure is the Return on Assets ratio, also known as ROA. It’s the most commonly used
benchmark for bank profitability since it measures the company’s return on investment in a format that is
easily comparable with other institutions.
Historically speaking, a ratio of 1% or greater has been considered pretty good. But this ratio will
fluctuate with the prevailing economic times. Larger banks also tend to have a lower ratio. Currently, the
big banks’ average ROA is at 1.16%, compared to 1.22% for banks with less than $1 billion in total
assets.
However, in Bangladesh, Banks' return on assets (ROA) narrowed by 57% in 2018, as a result of the high
amount of non-performing loans (NPLs) in the sector. According Bangladesh Bank’s data,

So, all of our selected banks go under private commercial banks category which has a sector average
ROA of 0.8. In terms of that all three banks performed above sector average. MTB bank performed
relatively low from EBL and BRAC Bank. And BRAC Bank performed the best ROA with an average of
1.60 which double the amount of sector average.

ROA
2.00%
1.80% 1.72%
1.58%
1.60% 1.51%
1.40% 1.28%
1.20% 1.10%
0.95% 0.98%
1.00% 0.89%
0.78%
0.80%
0.60%
0.40%
0.20%
0.00%
2016 2017 2018

EBL BRAC Bank MTB

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ROE
ROE is a key profitability ratio that investors use to measure the amount of a company's income that is
returned as shareholders' equity. This metric reveals how effectively a corporation is generating profit
from the money that investors have put into the business (by buying its stock).
The average for return on equity (ROE) for companies in the banking industry in the first half of 2018
was 11.86%, according to the Federal Financial Institutions Examination Council. But in Bangladesh, as
per the BB report published on 24th June 2019, return on equity (ROE) dropped to 4.4 per cent at the end
of December, 2018 while the rate was 10.4 per cent a year ago.

So, in 2018, ROE of banking sector was 4.4% which comparatively low from other sectors and also low
from ROE from banking sectors of other countries. But in this declining market all three-bank performed
comparatively well. As all three bank has a ROE ratio above 10% in these years. BRAC Bank performed
better than EBL, MTB as it got the highest ROE. So, that indicates investors are getting more return from
BRAC Bank, MTB is closing up t BRAC Bank and EBL also performed well with an average ROE of
12.4%.

A Graph of the ROE Ratios of those three banks of the period 2016-2018 is given below.

7|Page
 ROE
25.00%

20.67%
20.00%
18.25%
16.84%
16.09%
14.91%
15.00% 13.31%
13.04% 13.06%
11.10%
10.00%

5.00%

0.00%
EBL BRAC Bank MTB

NIM
Net interest margin is one indicator of a bank's profitability and growth. It reveals how much the bank is
earning in interest on its loans compared to how much it is paying out in interest on deposits. It is very
crucial for banks as banks primary business is giving loans. So, it provides the information how bank is
performing in terms of loan incomes.
Bankscope provides data for Bangladesh from 1996 to 2018. The average value for Bangladesh during
that period was 3.19% with a minimum of 1.66% in 1996 and a maximum of 5.58% in 2010. In 2018,
average value of NIM is 2.47%.

NIM
5.00%
4.50% 4.37% 4.24% 4.41%
4.00%
3.50%
3.00% 2.69%
2.64%
2.50% 2.29% 2.35% 2.36%
2.14%
2.00%
1.50%
1.00%
0.50%
0.00%
EBL BRAC Bank MTB

2016 2017 2018

8|Page
In our case, all three banks performed well comparatively in term of sector average but it has a lot of
scope to improve as all three bank has a good amount of NPLs (Non performing loan) which lower the
NIM. Brac bank has greater NIM then EBL and MTB it also reflects on NPL ratios as Brac bank’s
NPL is lower than other two banks.

Market position
A small description of current market standing of our selected banks.

EBL
Becoming the most valuable brand in the financial services in Bangladesh and creating long-lasting value
for our stakeholders of its company is the vision of the Easter bank limited. The total amount of money
that EBL holds is BDT 282,451 million. The total amount of deposit EBL has is BDT 199,629 million.
EBL gives loans and the amount of the loans is BDT 209,306 million. The amount of the NPL (Non-
performing loans) is 2.35%. Around BDT 3.5 billion trade volume by the EBL. In trade business 4.5% of
country's total volume worth USD 3.26 billion is handled by Eastern Bank Limited. EBL's EPS is BDT
4.17.

BRAC
BRAC Bank Limited began with the vision to provide banking solutions to the ‘unbanked’ Small and
Medium Entrepreneurs. The total amount of money BRAC holds is BDT 10,160 billion. The total amount
of deposit BRAC has is BDT 196,2 billion and amount of giving loans and advances is BDT 202,6
billion. Brac bank's NPL (Non-performing loans) is 3.56%. In trade business 7.3% of country's total
volume worth USD 5.29 billion is handled by Brac bank limited. Brac bank's EPS is BDT 5.17

MTB
To be one of the best performing banks in Bangladesh, the bank of choice and a truly world-class bank is
the vision of Mutual trust bank. The total amount of money Mutual trust bank holds is BDT 1,734
million. The total amount of deposit MTB has is BDT 166,160 million and amount of giving loans and
advances is BDT 166,145 million. Mutual trust bank's NPL (Non-performing loans) is 5.39%. In trade
business 2.2% of country's total volume worth USD 1.56 billion is handled by Mutual trust bank limited.
Mutual trust banks EPS is 3.03

Capital Adequacy
The banking sector’s capital base strengthened on paper in the second quarter of the year after some
banks were allowed to keep their provisioning against default loans in phases. Besides, some lenders also
recovered a good amount of fund from defaulted loans, which has made their capital base stronger than a
quarter earlier.
As of June, this year, banks’ capital adequacy ratio (CAR), which determines the adequacy of banks’
capital in keeping with their risk exposure, stood at 11.74 percent, up from 11.41 percent three months
earlier and 10.11 percent a year earlier, according to data from the central bank.

9|Page
But the country’s banking sector has failed to maintain CAR as per the roadmap set by the central bank
for implementation of Basel III this year, said a central bank official with strong knowledge on the matter.
From the first quarter of the year, banks were asked to maintain CAR at 12.50 percent in line with the
global best practices.

So, in 2018, all of our selected banks performed well in terms of capital adequacy as all three banks had a
Capital to Risk Weighted Assets Ratio (CRAR) above the minimum requirement according to BASEL III
regulation implication of Bangladesh Bank.
Here is a chart of all three
Capital to Risk Weighted Assets Ratio banks CRAR ratio:
18.00%
16.00%
15.70%
14.00% 12.86%
12.02%
12.00% So here, both EBL and
10.00% MTB performed well in
8.00%
capital adequacy as they are
above Bangladesh Bank’s
6.00%
given CRAR rate which is
4.00%
10.5% in 2018. But Brac
2.00% bank performed much
0.00% higher than other two banks
EBL BRAC MTB
as it CRAR is 15.70%. So
CRAR here Brac Bank is the most
solvent among these three
banks.

ROE Break- down:

To properly break-down ROE to see either ROE of those three banks gone up or down for relatively
because of the change of ROA, change of EM or it is related to both we have used DuPont Analysis.
DuPont Analysis is an extended examination of Return on Equity (ROE) of a company which analyses
Net Profit Margin, Asset Turnover, and Financial Leverage.

10 | P a g e
From this we derive the equation, ROE=ROA∗EM
From the ROE and ROA, we previously calculated we have determined the Equity Multiplier (EM) of all
three banks of the time period of 2016-2018.
The graphs of ROA and EM are given below:

ROA
0.02
0.02 1.72%
1.58%
0.02 1.51%
0.01 1.28%
0.01 1.10%
0.95% 0.98%
0.01 0.89%
0.78%
0.01
0.01
0.00
0.00
-
2016 2017 2018

EBL BRAC Bank MTB

20.00
Equity Multipier
18.00
16.84 17.15 16.75
16.00

14.00
12.05 12.01
11.72 12.08
12.00
10.19 10.16
10.00

8.00

6.00

4.00

2.00

-
2016 2017 2018
EBL BRAC Bank MTB

So, from the graph

it’s clear to us that both ROA and EM had changed over the period so ROE value changed because of
both ROA and EM.

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Recommendation

After doing the comparative analysis of all three banks we can conclude that all three banks are
performing well comparing with the industry average. But there some scope to improve for all three
banks. So, we recommend on basis of our analysis,


Eastern Bank Limited Consolidated Profit & Loss Account
EBL should try to achieve L/D ratio close to 100% by lowering their loan exposure as they are
2016
giving excess loan beyond their deposit amounts. Also, they should2017 2018ratio
improve their CRAR
which will benefit them in financial crisis. Taka Taka Taka
Interest income 13662629884 14610518896 20,188,213,662
Interest paid on deposits and borrowings etc -8055398021 -8731897131 -12,577,183,349
 Brac Bank should improvise their loan management depart to lower the NPL rates and also try to
Net interest income
lower the efficiency ratio which benefit their5607231863
banking activities.5878621765
By Brac Bank can 7611030313
improve their
Investment income 3261885000 3252068175 2,312,348,542
ROE.
Commission, exchange and brokerage 2659444644 3526731065 3,467,718,223
Other operating income 181614792 205780397 223,462,947
 MTB must take necessary step to lower their NPL rates as among those three banks MTB has the
6102944436 6984579637 6,003,529,712
highest NPLs over the period. MTB also have highest Debt to Equity ratio, so to pay back the
Total operating income (A) 11710176299 12863201402 13614560025
depositors and lender MTB must increase their loan profit. This also help MTB to achieve higher
Salaries and allowances 2883203413 3,216,287,503 3,586,927,426
ROE.
Rent, taxes, insurance, utilities, etc. 664,918,580 757082309 813,513,602
Legal & professional expenses 110821082 143262967 101,443,119
Postage, stamp, telecommunication, etc. 144449537 138432988 145,005,015
Stationery, printing, advertisements, etc. 302496398 327353784 346,806,843
Managing Director's salary and allowances 20413194 21550646 23,015,710
Directors' fees & expenses 3963477 4461583 4,965,971
Auditors' fees 1598574 1722030 2,100,364
Depreciation, and repair of bank's assets 503709980 503860298 575,952,524
Other expenses 558666878 693447736 635,058,454
Total operating expenses (B) 5194241113 5807461844 6234789028
Profit before provision (C = A-B) 6515935186 7055739558 7379770997
Provision for loans and advances:
General provision 283884025 207915553 286,754,762
Specific provision (net off w/off recovery) 1906885158 2394986904 1,910,730,079
Provision for off -balance sheet exposures 101003143 192593775 40,147,338
Other provision 40 -292,883,038 -6,727,719 414,549,580
Total provision (D) 1998889288 2788768513 2652181759
Total profit before taxes (E = C-D) 4517045898 4266971045 4727589238
Provision for taxation (F) 41 1,697,229,180
Current tax expense 1830849042 2031873549
Deferred tax (income)/expense -30,138,865 -193,172,244 -80,416,846
Total provision for tax 1800710177 1838701305 1,616,812,334
Appendix
Net profit after tax (G = E-F) 2716335721 2428269740 3110776904
All amount is in BDT
Appropriations 2716335721 2.42826974
Statutory reserve 15
General reserve -379902418 -388295622

Retained surplus for the year 1836433303 2039974118

Earnings per share (EPS) 42 3.68 3.29 4.22
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Number of share outstanding 737999589 737999589 737999589

Devidend paid 1,222,359,570 1,405,713,504 1,405,713,504

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 All amount is in BDT
Eastern Bank Limited Consolidated Balance Sheet
ASSETS
2016 2017 2018
Cash
Cash in hand (including foreign currencies 2,035,038,421 2,024,742,407 2,624,689,253
Balance with Bangladesh Bank and its agent bank(s) (including foreign currencies)10,164,025,705 12,296,507,177 13,713,276,245
12,199,064,126 14,321,249,584 16,337,965,498
Balance with, other banks and financial institutions
In Bangladesh 9,799,656,546 10743290183 8,521,927,314
Outside Bangladesh 826,202,789 1,733,092,624 8,437,097,706
10,625,859,335 12,476,382,807 16,959,025,020

Money at call and short notice 100,000,000

Investments
Governmen: 18,320,613,148 19,480,497,640 22,221,712,390
Others 4,619,215,993.000 6,625,500,985 5,498,237,011
22,939,829,141 26,105,998,625 27,719,949,401

Loans and advances

Loans, cash credits, overdrafts, etc. 137,473,558,900 165,691,389,665.000 193,014,394,181
Bills purchased and discounted 18,897,775,910 25,993,145,776.000 16,291,856,566
156,371,334,810 191,684,535,441 209,306,250,747
Fixed assets including land, building. Furniture and fixtures 5,954,156,754 5,957,095,835 6,636,617,166
Other assets 4,032,882,402.000 5,620,486,753 5,357,128,978
Non-banking assets 154,050,500 134,016,495.000 134,016,495
Total assets 212,377,177,068 256,299,765,540 282,450,953,305

LIABILITIES AND CAPITAL

Liabilities

Borrowings from other banks, financial institutions and agents 39,369,685,979 52,447,284,352.000 49,066,095,646
Deposits and other accounts
Current accounts and other accounts 16,651,527,406 16,993,725,421.000 21,011,202,434
Bills payable 797,002,510 845,849,963.000 916,901,298
Savings bank deposits 38,426,476,123 41,894,304,551 46,053,721,505
Fixed deposits 84,330,111,292 107,224,667,689 105,542,120,447
Bearer certificates of deposit
Other deposits- special notice deposit (SND 25,631,642,386
140,205,117,331 166,958,547,624 199,155,588,070
Other liabilities 11,970,564,023 15,017,731,534.000 13,902,926,147
Total Liabilities 191,545,367,333 234,423,563,510 262,124,609,863
Share Holder's Capital
Paid-up capital 7,028,567,520.000 7,379,995,890.000 7,379,995,890
Statutory reserve 6,991,700,268 7,379,995,890.000 7,379,995,890
Dividend equalisation reserve 356,040,000 356,040,000.000 356,040,000
Excess of reserve over pre-take over loss-BCCI 617,792,231.000 642,857,893
Asset revaluation reserve 2,534,874,738.000 2,534,874,738.000 2,693,094,374
Reserve for amortisation of treasury securities (HT1v1) 6,200,987.000 9,964,360
Reserve for revaluation of treasury securities (HFT) 12,145,508 1,465,284
General. reserve 130,000,000 130,000,000 603,493,370
Reserve against non-banking assets 141,288,665.000 121,671,165
Foreign currency translation difference 657,505 14,110,435 3,291,006
Surplus in profit and loss account 3,012,542,313 3,305,226,375 4,959,549,554
Total shareholders' equity 20,831,809,735 21,876,202,030 23,375,460,084
Total liabilities and shareholders' equity 212377177068 256299765540 285500069947

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 All amount is in BDT
BRAC BANK LIMITED Consolidated Balance Sheet
Particulars
2016 2017 2018
PROPERTY AND ASSETS
Cash 15,827,759,714 18,301,854,032 22,394,474,142
Cash in hand (Including foreign currency) 5,411,271,407 6,109,792,050 6,674,699,654
Balance with BB and its agent bank(s) (Including foreign currency) 10,416,488,307 12,192,061,982 15,719,774,488

Balance with other banks and financial institutions 31,148,142,995 43,355,772,365 44,651,943,921
Inside Bangladesh 29,024,134,806 39,974,980,085 41,918,719,170
Outside Bangladesh 2,124,008,189 3,380,792,280 2,733,224,751
Money at call and short notice
Investments 22,937,709,817 26,889,161,707 35,133,273,327
Government 17,045,441,443 19,193,023,616 27,925,905,144
Others 5,892,268,374 7,696,138,091 7,207,368,183
Loans and advances 175,841,420,944 203,431,019,401 238,400,399,660
Loans, cash credit, overdrafts etc. 112,728,439,450 116,620,559,298 139,883,617,667
Small and medium enterprises 61,185,461,566 81,064,166,152 80,422,409,963
Bills purchased and discounted 1,927,519,928 5,746,293,951 18,094,372,030
Fixed assets Including premises, furniture and fixture 4,460,411,520 5,610,423,547 6,265,160,203
Other assets 16,664,191,071 20,547,926,418 9,665,434,144
Non-banking assets 62,230,075 63,430,075 66,471,775
Goodwill 1,382,151,929 1,350,628,757 1,427,468,911
Total property and assets 268,324,018,065 319,550,216,302 358,004,626,083

LIABILITIES AND CAPITAL

Liabilities
Borrowings from other banks, financial institutions and 19,131,258,722 23,210,933,175 22,958,478,616
Borrowings from Bangladesh Bank 6,752,978,397 5,595,585,766 8,344,796,525
Convertible subordinated bond 2,951,079,000 2,850,148,000
Money at call and short notice 1,303,750,000 2,700,000,000
Deposits and other accounts 181,478,777,560 216,929,919,763 255,073,828,613
Current accounts and other accounts 66,657,447,378 83,474,319,154 80,225,826,007
Bills payable 1,309,401,487 1,013,749,416 1,528,433,733
Savings deposits 31,368,696,186 35,100,923,580 38,320,761,103
Fixed deposits 80,737,078,388 95,556,881,123 133,388,177,229
Other deposits 1,406,154,121 1,784,046,490 1,610,630,541
Other liabilities 32,966,273,574 39,833,786,707 29,927,337,027
Total liabilities 244,584,117,253 291,120,373,411 316,304,440,781
Capital and shareholders' equity
Paid up share capital 7,104,369,100 8,552,096,940 10,725,002,850
Share premium 5,181,774,966 3,738,490,072 3,853,767,032
Statutory reserve 3,470,350,332 4,813,606,868 6,428,088,086
Dividend equalization fund 355,218,455 355,218,455 355,218,455
Revaluation reserve on govt. securities 111,643,709 23,306,557 5,593,264
Assets revaluation reserve 516,373,535 516,373,535 478,558,600
Fair value reserve 78,920,073
Translation reserve -17,674,822
Surplus in profit and loss account/Retained earnings 5,524,376,341.00 8,601,051,187 13,342,589,185
Total shareholders' equity 22,264,106,438 26,600,143,614 35,250,062,723
Non controlling interest 1,475,794,375 1,829,699,277 6,450,122,579
Total equity 23,739,900,813 28,429,842,891 41,700,185,302
Total liabilities and shareholders" equity 268,324,018,066 319,550,216,302 358,004,626,083

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 All amount is in BDT
BRAC BANK LIMITED Consolidated Profit and Loss Account
2016 2017 2018

Interest income 18,310,392,086 21,734,412,978 27,463,966,939

Interest paid on deposits and borrowing etc. 6,589,489,453 8200931514 11660482140
Net interest income 11,720,902,633 13,533,481,464 15,803,484,799
Investment income 2,604,417,333 2,914,699,537 2,782,984,186
Commission, exchange and brokerage 5,536,793,618 6,881,929,480 7,226,644,875
Other operating income 1,574,427,159 371,289,964 194,608,406
9,715,638,110 10,167,918,981 10,204,237,467
Total operating income (A) 21,436,540,743 23,701,400,445 26,007,722,266
Salaries and allowances 4,719,338,370 5,865,172,038 6,436,945,569
Rent, taxes, insurance, electricity etc. 1,255,532,148 1,424,790,306 1,532,970,820
Legal expenses 63,887,119 45,674,049 76,193,857
Postage, stamps, telecommunication etc. 289,001,674 300,037,460 321,719,919
Stationery, printing, advertisement etc. 1,128,173,047 1,392,850,352 2,169,679,696
Chief Executive's salary and fees 13,309,000 13,309,000 13,971,499
Directors' fees and expenses 3,035,305 3,311,536 3,009,464
Auditors' fee 6,810,716 5,251,088 6,305,738
Impairment of goodwill 30,046,781 30,046,781
Depreciation and repairs to bank's assets 1,516,567,300 1,525,706,898 2,026,717,532
Other expenses 2,559,357,892 3,672,792,048 4,026,750,022
Total operating expenses (B) 11,585,059,352 14,278,941,556 16,614,264,116
Operating profit 9,851,481,391 9,422,458,889 9,393,458,150
Share of profit/(loss) of associates 14,332,840 1,915,700
Gain/(loss) on disposal/loss of control of subsidiaries -18,366
Profit/(loss) before provision (0 =A-B) 9,851,481,391 9,436,773,363 9,395,373,850
Provision for:

Loans and advances 2,979,779,405 992,782,725 683,745,138

Diminution in value of investments -240,000,000 -72,224,112 116,400,000
Off balance sheet items 62,500,000.000 131,315,329 -37,000,000
Others 100,490,994 -10,762,161
Total provision (D) 2,802,279,405 1,152,364,936 752,382,977
Total Profit/loss before taxes (C-0) 7,049,201,986 8,284,408,427 8,642,990,873
Provision for Tax:
Current tax expense 2,961,197,635 3,570,883,968 2,994,171,667
Deferred tax expense,/ (income) 25,864,637 -784,891,580 -21,249,563
Total provision for Tax 2,987,062,272 2,785,992,388 2,972,922,104
Net profit/ (loss) after taxes 4,062,139,714 5,498,416,039 5,670,068,769
Appropriations:
Statutory reserve
General reserve

Retained surplus
Attributable to:
Equity holders of BRAG Bank Limited
Minority interest

Earnings Per Share (EPS) 5.47 6.07 5.17

Number of share outstanding 1072500285 1072500285 1072500285

Dividend paid 1,767,573,997 696,157,876 696,157,876

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 All amount is in BDT
MUTUAL TRUST BANK Consolidated Balance Sheet
Particulars 2016 2017 2018
Property & Asset
Cash 11,263,046,577 13,077,123,517 12,301,086,194
In Hand (Including Foreign Currency) 1,987,478,022 2,191,164,252 2,520,607,136
With Bangladesh Bank and its agent Bank (s) (including Foreign Currency) 9,275,568,555 10,885,959,265 9,780,479,058
Balance with Other Banks & Financial Institutions 8,148,416,411 2,798,256,664 3,176,565,149
In Bangladesh 7,286,894,739 1,030,004,295 861,661,189
Outside Bangladesh 861,521,672 1,768,252,369 2,314,903,960
Money call and short notice 990,000,000 4,690,000,000 1,580,000,000
Investments 21,962,058,934 25,105,802,134 27,388,395,082
Governments 19,627,418,568 22,703,494,533 24,421,226,713
Others 2,334,640,366 2,402,307,601 2,967,168,369
Loans & Advances 114,355,762,842 145,606,993,782 166,145,119,129
Loans, Cash Credits, Overdrafts, etc 112,071,881,968 143,429,214,788 163,394,332,234
Bills Purchased and Discounted 2,283,880,874 2,177,778,994 2,750,786,895
Fixed Assets including Premises, Furniture & Fixtures 3,140,971,243 3,211,265,364 3,128,176,263
Other Asset 5,510,430,863 7,264,492,733 8,725,556,034
Non Banking Assets
Total property & Assets 165,370,686,870 201,753,934,194 222,444,897,851

Liability & Capital

Borrowing from other Banks, Financial Institutions & Agents 8,711,409,523 16,417,678,099 19,640,823,048
Deposits and Other Accounts 131,272,330,274 151,776,065,501 166,160,290,425
Current Deposits & Other Accounts 12,301,476,077 14,652,100,509 14,090,900,316
Bills Payable 1,751,051,731 2,100,804,374 1,703,433,803
Saving Bank Deposit 23,710,184,165 27,479,479,774 28,239,575,869
Special Bank deposit 11,645,986,993 11,721,963,726 12,863,186,737
Fixed Deposit 55,803,465,444 67,113,942,085 77,043,035,120
Deposit Products 26,060,165,864 28,707,775,033 32,220,158,580
Other Liabilities 11,318,564,906 13,798,103,840 15,964,827,954
Subordinated Debts 4,250,000,000 8,000,000,000 7,400,000,000
Total Liabilities 155,552,304,703 189,991,847,440 209,165,941,427
Capital/Shareholders’ Equity
Paid up Capital 4,431,791,600 5,096,560,340 5,733,630,380
Statutory Reserve 3,187,766,825 3,622,224,031 4,096,004,358
Revaluation Reserve on Investment in Securities 731,782,030 696,384,694 480,328,680
Foreign Currency Translation gain/(loss) 8,903,016 7,667,134 6,143,266
General Reserve 616,777,324 616,777,324 786,777,324
Retained Earnings 841,239,233 1,722,348,545 2,175,943,964
Total Shareholders' Equity 9,818,260,028 11,761,962,068 13,278,827,972
Minority Interest 122,139 124,686 128,451
Total Liabilities and Shareholders’ Equity 165,370,686,870 201,753,934,194 222,444,897,850

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 All amount is in BDT
MUTUAL TRUST BANK LIMITED Consolidate d Profit & Loss Account

Particulars 2016 2017 2018

Interest Income 11,381,372,890 12,160,542,962 15,687,277,155
Less: Interest Paid on Deposits and Borrowings, etc. -7,503,094,801 -7,852,867,671 -10,436,062,969
Ne t Inte re st Income 3,878,278,089 4,307,675,291 5,251,214,186
Investment Income 2,010,544,355 2,127,213,334 2,343,167,734
Commission, Exchange and Brokerage 1,228,154,940 1,578,009,117 1,682,805,559
Other Operating Income 397,902,578 466,395,805 551,932,140
3,636,601,873 4,171,618,256 4,577,905,433
Total Ope rating Income 7,514,879,962 8,479,293,547 9,829,119,619
Le ss: Ope rating Expe nse s:
Salary and Allowances 2,256,194,529 2,402,684,185 2,711,522,726
Rent, Taxes, Insurance and Electricity etc. 608,223,014 664,468,164 696,453,008
Legal Expenses 3,385,938 3,568,913 3,369,120
Postage, Stamps and Telecommunication etc. 8,951,331 7,076,154 14,635,616
Stationery, Printing and Advertisements etc. 83,175,269 101,173,252 124,717,809
Managing Director's Remuneration 17,315,333 18,275,334 19,235,333
Directors' Fees 3,031,033 3,441,200 3,340,700
Auditors' Fees 2,580,355 1,776,066 1,838,605
Depreciation and Repair of Bank's Properties 390,901,907 429,753,440 464,482,047
Other Expenses 733,008,817 931,357,187 905,196,708
Total Ope rating Expe nse s 4,106,767,526 4,563,573,895 4,944,791,672
Profit Be fore Provision 3,408,112,436 3,915,719,652 4,884,327,947
Less: Provision against Loans & Advances including Off Balance Sheet Items 864,534,528 1,490,755,481 2229459050
Less: Provision against Investments 71,100,000 155,492,999 103,000,000
Less: Provision against Other Asset 11,000,000 10,000,000 10,000,000
Total Provision 946,634,528 1,656,248,480 2,342,459,050
Profit Be fore Tax 2,461,477,908 2,259,471,172 2,541,868,897
Le ss: Income Tax e xpe nse s 997,884,480 279,133,367 807,419,347
Current Tax Expenses 961,277,823 1,180,006,962 1,047,932,817
Deferred Tax (Income)/ Expenses 36,606,657 -900,873,595 -240,513,470
Ne t Profit Afte r Tax 1,463,593,428 1,980,337,805 1,734,449,550

Shareholders of the Bank 1,463,590,966 1,980,335,258 1,734,445,786

Minority Interest 2,461 2,547 3,764
Re taine d Surplus Brought Forward 752,903,276 841,239,233 1,722,348,545
2,216,494,242 2,821,574,491 3,456,794,331
Appropriations: 1,375,255,010 1,099,225,946 1,280,850,367
Bonus Shares Issued during the year 738,631,930 664,768,740 637,070,040
Transferred to Statutory Reserve 466,623,080 434,457,206 473,780,327
Transferred to General Reserve 170,000,000 170,000,000
Re taine d Surplus, Carrie d Forward 841,239,233 1,722,348,545 2,175,943,964
Earnings Pe r Share (EPS) 3.3 3.89 3.03

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