Financial Performance Analysis of EBL & IFIC BANK

1.0 Introduction
A bank is a financial institution which accepts public deposits and creates a demand deposit
while making loans at the same time. Banking Industry is one of the most promising industries of
our country. The importance of the sector revealed through its contribution in the economic
growth of the country. This sector accelerates economic growth through mobilizing funds from
surplus unit to the deficit unit. Banking Industry is moving towards rapid changes due to
technological innovation and diversified needs of its customers. As the pace of globalization
competition in banking sector is increasing very fast. In this report we discussed about two
renowned banks of Bangladesh which are EBL & IFIC Bank.

EASTERN BANK LIMITED (EBL) is a remarkable entrepreneurial success story commitment

and cooperative efforts of the Bangladeshi government and the Bangladesh Bank, who worked
together to create the bank in August 1992 and began its operation in the same month work. The
bank has now established its strong footprint in the banking industry of the country with
enhanced HR capacity, IT platform with state of the art system, flawless processes, superior
business ethics, strong control and compliance and developed strategic partnership with various
local and multinational agencies/institutions to offer innovative products and international
standard financial services to our valued customers.

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking
company incorporated in the People's Republic of Bangladesh with limited liability. It was set up
at the instance of the Government in 1976 as a joint venture between the Government of
Bangladesh and sponsors in the private sector with the objective of working as a finance
company within the country and setting up joint venture banks/financial institutions aboard. In
1983 when the Government allowed banks in the private sector, IFIC was converted into a full-
fledged commercial bank. The Government of the People's Republic of Bangladesh now holds
32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the
field of trade and commerce own 11.31% of the share capital and the rest is held by the general
public.

Banking Industry is moving towards rapid changes due to technological innovation and
diversified needs of its customers. As the pace of globalization competition in banking sector is
increasing very fast.

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Financial Performance Analysis of EBL & IFIC BANK

1.1 Objective of the study

Broad Objective:
The sole purpose of this report is to develop a picture on financial performance of EBL & IFIC
Bank. We particularly focused on the growth rates and did comparative analysis to understand
overall financial performance of both bank

Specific Objective:
✓ To present the company profile of EBL & IFIC Bank.
✓ To present the principal activities of Eastern Bank Limited
✓ For making predictions about the bank's future prospects.
✓ To assist with making and managing choices.
✓ To evaluate the performance of EBL & IFIC Bank.
✓ To understand the comparative growth of EBL & IFIC Bank.
✓ To identify the problems of EBL & IFIC Bank.
✓ To suggest remedial measures of development of EBL & IFIC Bank.

1.2 Limitation of the study

In this report, a wholehearted effort was put into collecting, arranging and analyzing the relevant
evidence and eventually to achieve the best outcomes of the study. But this is true no analysis is
free of error. Despite these efforts, some limitations exist which is given bellow-
✓ This research heavily relies on legal records and annual accounts.
✓ While assembling records, we experienced huge problems because they were not well
organized.
✓ It was very difficult to gather information about the banking results, as we have to follow
more about secondary information, such as accounting accounts, directories and some of
the banking records.
✓ Because of COVID'19, we cannot go to banks so we have to collect information on the
basis of Web-Online.
✓ Lack of time, as comparative analysis report like this need more.

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Financial Performance Analysis of EBL & IFIC BANK

2.0 Company Overview

EBL BANK

Eastern Bank Limited, commonly known by its acronym EBL, has emerged as one of the most
valuable financial institutions in Bangladesh, gradually building on key strengths in IT, corporate
governance and service excellence. EBL 's driving philosophy is to address emerging demands
of the contemporary market environment, while concentrating on the strength of human
interaction and partnership banking at the same time.EBL went on with a modest beginning in
1992 with a tiny but optimistic steps forward and a promise to positively affect lives. Today,
EBL stands for quality in operation, product creativity and world-class experience in banking.
EBL, the most awarded bank in the country, is also the first bank to be ranked and awarded Ba3
by Moody's, the world's highest rating agency. From 2016 to 2018 EBL has won Euro money
Best Bank in Bangladesh for its integrity, prudence and success over the last three consecutive
years. EBL has also won three awards from Asia money for Best Corporate and Investment Bank
and Finance Asia for Best Bank in Bangladesh in 2017 and for Best Investment Bank in
Bangladesh in 2019. The CRISL local credit ranking was upgraded from AA to AA+

IFIC BANK

International Finance Investment and Commerce Bank Limited (IFIC Bank) is a limited liability
banking corporation incorporated in the People's Republic of Bangladesh. It was founded at the
government's instance in 1976 as a joint venture between the Government of Bangladesh and
private sector sponsors with the goal of operating as a finance company within the country and
expanding it as a joint venture banks/financial institutions abroad. IFIC was developed into a
full-fledged commercial bank in 1983, when the government approved banks in the private
sector. The Government of the Bangladesh People's Republic still owns 32.75 per cent of the
Bank's share. Directors and promoters with substantial banking and investment expertise own
8.33 percent of the share capital and the remainder are owned by local and international
institutions as well as general shareholders. This bank contains 150 branches in Bangladesh. In
our country as the central bank, Bangladesh Bank has regulatory power to handle and operate all
the banks. It Carries out the conventional central banking functions of issuing bills and becoming
a banker to the regulation and the financial sector. The profit-making commercial banks and
domestic private banks are the financial institution that holds individual & company deposits in
checks & savings accounts and then those accounts are used to make loans. The society at large
and the government are Based as financial brokers on the services of the banks.

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Financial Performance Analysis of EBL & IFIC BANK

2.1 Mission
EBL Mission

• We will deliver service excellence to all our customers, both internal and external.
• We will ensure to maximize shareholders' value.
• We will constantly challenge our systems, procedures and training to maintain a
cohesive and professional team in order to achieve service excellence.
• We will create an enabling environment and embrace a team-based culture where
people will excel.

IFIC Mission

• The Mission of IFIC Bank is to provide service to their clients with the help of a skilled
and dedicated workforce whose creative talents, innovative actions and competitive edge
make their position unique in giving quality service to all institutions and individuals that
we care for.
• The company are committed to the welfare and economic prosperity of the people and the
community, for the company derive from them their inspiration and drive for onward
progress to prosperity.
• They want to be the leader among banks in Bangladesh and make our indelible mark as
an active partner in regional banking operating beyond the national boundary.
• In an intensely competitive and complex financial and business environment, the
company particularly focus on the growth and profitability of all concerned.

2.2 Vision
EBL Vision

To become the most valuable brand in the financial services in Bangladesh creating long-lasting
value for our stakeholders and above all, for the community, we operate in by transforming the
way we do business and by delivering sustainable growth.

IFIC Vision

At IFIC, they want to be the preferred financial service provider through innovative, sustainable
and inclusive growth and deliver the best in class value to all stakeholders.

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Financial Performance Analysis of EBL & IFIC BANK

2.3 Product and services

EBL Bank

Bangladesh Banking Sector has grown from strength to strength over the past one decade and is
fiercely competitive, especially in the Consumer Banking segment. EBL offers a wide range of
depository, loan and card products to cater virtually for every customer segment. From Student
Banking to Priority Banking to Platinum card EBL has almost all banking products in its
repertoire. The product basket is rich in content featuring different types of Savings & Current
Accounts, Personal Loans, Debit Cards, Credit Cards, Pre-paid Cards, Internet Banking,
Corporate Banking, SME Banking, Investment Banking, Treasury & Syndication services. The
customers are served through a network of 49 Branches, 74 ATMs and 6 Kiosks countrywide.
EBL has its presence in 11 major cities/towns in the country including Dhaka, Chittagong,
Sylhet, Khulna, Rajshahi & Cox’s Bazar.The EBL concentrates the following categories of
banking services

• Retail banking- One of the most impressive success stories of the banking industry in
the last 50 years worldwide was the conceptualization and creative implementation of
individual banking customers, relatives and friends. It was dubbed Retail Banking by the
industry or Consumer Banking or Personal Banking. Recently the Eastern Bank Ltd. has
launched its trip to Retail Banking. So far more than 800 personnel have been educated
on the critical service Quality and Advertising ideas.
• Loans and Advances
• SME (Small & Medium Enterprises)-Given the possible situation of growth and
demand Eastern Bank Limited has extended credit facilities to small and medium-sized
businesses throughout the year via SME Banking 2006 & 2007
• Corporate Banking- Corporate Banking fulfills various banking needs of large
Corporate Houses, as well as Financial Institutions & Micro-Credit Organizations. In the
process, EBL has gained the confidence of the corporate world and established a unique
brand image of sound efficiency and immediate delivery. They are now present in key
business districts of the country serving both local and multi-national corporate houses,
with ready access to our team of relationship managers, product and sector specialists.
Their products cover the following broad categories:
1. Industrial and Project Financing
2. Investments/ Capital Market Services
3. Transaction services
4. Trade Services and FX
5. Deposits & Cash Management Solutions

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Financial Performance Analysis of EBL & IFIC BANK

• International Trade and Foreign Exchange-

1. Export Import
2. Remittance
• Green Banking Services
• EBL Cards-
1. EBL Credit Cards (Consumer): EBL Classic Credit Card, EBL VISA Gold
Credit Card, EBL VISA Platinum Credit Card, Signature, Jet Airways EBL
Platinum Card, Diners Club Credit Card, EBL MasterCard Titanium Credit
Card, EBL MasterCard World Credit Card.
2. EBL Credit Card (Corporate): EBL Corporate Cards
3. EBL Debit Cards (Consumer): Debit Card, Global Debit Card, Signature Debit
4. EBL Debit Cards (Corporate): EBL Visa Business Debit Card EBL Hajj Card,
EBL Smart Remit, Life Style Prepaid Card, Travel Card, EBL MasterCard
Aqua Prepaid Card

Customers now expect to have resources and information at all times and locations. ATMs and
POS terminals have made this possible and supported banks in achieving "Banking anywhere,
wherever" Consequently, an automatic one is required device linking the branches by green to
provide better services, employers.

IFIC Bank

IFIC Bank offers a wide variety of deposit products, loan product & value added services to suit
the customer’s banking requirements. Products and services for individual customer include:
Consumer Finance, Deposit Product, Card, NRB Account, Student File, SMS Banking etc.

• Corporate banking: IFIC Bank LTD offers a wide variety of banking services and expert
advice. Corporate clients to satisfy different industry moving demands. Equipped with the
bank with experience in the tailored goods and services industry to fulfill the requirements of
Any single customer. Taking up the obstacles and understanding potential career prospects
for a company organization, IFIC Bank LTD. is still there for company facilitation. The
components of IFIC Bank Ltd. corporate banking are:
1. Working capital finance:
2. Project finance
3. Term Finance
4. Trade Finance
5. Lease finance

• Retail Banking: IFIC Bank LTD is specializing in the provision of one-stop financial
services to all Person consumers listen to their needs through creative goods and services. In

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Financial Performance Analysis of EBL & IFIC BANK

this respect, the bank has a mass banking facility for the use of banking facilities by
individual clients directly from the worldwide branch network. To have facilities
uninterrupted and a cent more comfortable.
1. Consumer Finance
2. Deposit Products
3. IFIC cards
4. NRB Account
5. Student file
6. SMS Banking

• SME Banking: IFIC Bank offers the free collateral lending facility for small to medium-
sized enterprises throughout the country nation which has very limited access to conventional
lending facilities. They sell Fifteen various items for selected focus audiences such as-
1. 1.Easy Commercial Loan
2. 2.Retailers Loan
3. 3.Muldhan Loan
4. 4.Women Entrepreneur's Loan (Protyasha)
5. 5.Transport Loan
6. 7.Working Capital Loan
7. 8.Project Loan
8. 9.letter of Contractor's Loan
9. Bidder's Loan
10. 11.Working Capital Loan

• Agricultural Credit Bangladesh is a country based on agriculture where most residents live
in rural areas. Realizing that the Bank relies on agriculture for the majority of the total
population. Committed to expanding the existing portfolio of loans in the agriculture sector.
So, the agriculture loan products which IFIC Bank LTD. is offering are-
1. 1.Krishi Saronjam Rin
2. 2.Shech Saronjam Rin
3. 3.Poshupokkhi & Motsho Khamar Rin
4. 4.Phalphasali Rin

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Financial Performance Analysis of EBL & IFIC BANK

3.0 Growth Rate Analysis of EBL & IFIC Bank

Growth rates are utilized by analysts, investors, and a company's management to assess a firm's
growth periodically and make predictions about future performance.

In this part of my report, we are going to show the overall performance of EBL Bank and IFIC
Bank. This part is analyzed based on the annual report of EBL Bank and IFIC Bank from the
year of 2015 to 2019. According to five-year annual report, my analysis is based on 10 accounts-
Cash, Investments, Other Assets, Total Assets, Total Liabilities, Total Shareholder's Equity, Net
Interest Income, Total Operating Income, Total Operating Expenses, Earning per Share. All of
these are shown in tabular and graphical presentation below-

3.1Cash
Growth Rate -CASH

EBL IFIC
Year
Amount Growth Rate Amount Growth Rate
2015 10,944,412,837 6.24% 11,861,355,635 14.06%
2016 12,198,971,592 11.46% 14,067,154,663 18.60%
2017 14,321,017,568 17.40% 15,478,772,582 10.03%
2018 16,337,965,498 14.08% 16,007,300,116 3.41%
2019 19,690,222,660 20.52% 18,054,911,164 12.79%

Growth Rate- Cash

25.00%

20.00%

15.00%
EBL
10.00% IFIC

5.00%

0.00%
2015 2016 2017 2018 2019

Cash and cash equivalents under the current assets section of a balance sheet represent the
amount of money the company has in the bank, whether in the form of cash, savings bonds,

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Financial Performance Analysis of EBL & IFIC BANK

certificates of deposit, or money invested in money market funds. Based on the following data,
The growth rate of EBL has positively increased from 2015- 2019. In addition, In 2016 the
growth rate was 11.46% which was nearly double from 2015 growth rate which was 6.24%.
Though the rate was slightly decline in 2018 compared to 2017. But in 2019, EBL bank managed
to come back with a noticeable increased in growth rate which is 20.52%. As for the IFIC Bank,
the growth rate was quite up and down in 2015-2019. However, The rate for first two years are
14.06% and 18.60%. Afterwards the rate sharply went down in the following two years. In 2019,
the growth rate again went up to 12.79%. But the highest growth of IFIC was in 2016, which was
18.60%.

Comparing this 2 bank the growth rate of EBL is quite satisfactory comparatively to IFIC bank.
It shows that EBL has better performance and they have more liquid to invest.

3.2 Investment
Growth Rate -INVESTMENT
EBL IFIC
Year
Amount Growth Rate Amount Growth Rate
2015 23,397,963,735 -5.10% 28,497,856,878 24.74%
2016 21,448,633,783 -8.33% 25,204,524,182 -11.56%
2017 24,360,944,115 13.58% 27,858,142,242 10.53%
2018 27,719,949,401 13.79% 31,304,385,918 12.37%
2019 39,797,011,948 43.57% 45,500,148,033 45.35%

Growth Rate- Investment

50.00%
40.00%
30.00%
20.00%
EBL
10.00%
IFIC
0.00%
-10.00%
-20.00%
2015 2016 2017 2018 2019

An investment is an asset or item that is purchased with the hope that it will generate income or
appreciate in value at some point in the future.

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Financial Performance Analysis of EBL & IFIC BANK

Based on the following data, EBL growth rate for investment was negatively declined for first
two year, the rate for the following year was -5.10% and -8.33%. Later, In 2017 and 2018 the
rate was increased to 13.58% and 13.79%. But in 2019 EBL came up with a noticeable increase
in the growth rate which was 43.57%. It is almost increased 3x time compared to previous year.
As for IFIC the growth rate was increased in 2015 but later in 2016 it negatively declined to
11.56%. Afterward its rate was increase in the following year of 2016 and 2017. Like EBL, IFIC
bank in 2019 faced a huge increase in growth rate which is 45.35%.

Comparatively, the investment growth rate is nearly same for the two banks in the time length of
2016-2019. And it can be said that both banks are doing quite well in investments in recent
years. As invest helps to earn extra revenue for the banks.

3.3 Loan and Advances

Growth Rate -LOANS AND ADVANCES

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 130,226,324,465 10.09% 123,268,667,873 20.52%
2016 152,083,687,536 16.78% 137,118,111,549 11.24%
2017 184,027,300,831 21.00% 179,264,206,747 30.74%
2018 209,306,250,747 13.74% 206,929,635,707 15.43%
2019 232,051,034,763 10.87% 228,588,500,237 10.47%

Growth Rate- Loans and advances

35.00%
30.00%
25.00%
20.00%
EBL
15.00%
IFIC
10.00%
5.00%
0.00%
2015 2016 2017 2018 2019

Loans are the major asset for most banks. They earn more interest than banks have to pay on
deposits, and, thus, are a major source of revenue for a bank.

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Financial Performance Analysis of EBL & IFIC BANK

Based on the following data, EBL and IFIC growth rate of loan and advance is not quite
satisfactory. It has dropped in recent years. The growth rate was increased quite well in the time
length of 2015 to 2017 for EBL bank. After that it appeared to be continuous fall for the
following two years and the rate was 13.74% and 10.87%.As for IFIC , the rate was quite up and
downward. In 2015 the rate went up by 20.52%, but in 2016 it went down by 11.24%. However,
it managed to increased its rate in 2017 which was the highest rate and it was 30.74%. But again
the growth rates faced a massive fall in the time length of 2018 and 2019.

Both EBL and IFIC Banks growth rates for loans and advances are declining in recent years and
it a matter of concern. As a main source of revenue is falling down. Banks should think about
this matter and make new strategy so that the rate can again goes up.

3.4 Total Assets

Growth Rate -TOTAL ASSETS

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 189,563,399,618 10.13% 178,333,951,390 14.07%
2016 211,185,458,156 11.41% 197,050,714,758 10.50%
2017 253,365,303,480 19.97% 253,248,941,805 28.52%
2018 282,450,953,306 11.48% 283,073,282,387 11.78%
2019 335,163,467,725 18.66% 316,950,343,190 11.97%

Growth Rate- Total Assets

30.00%

25.00%

20.00%

15.00% EBL

10.00% IFIC

5.00%

0.00%
2015 2016 2017 2018 2019

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Financial Performance Analysis of EBL & IFIC BANK

Assets are reported on a company's balance sheet and are bought or created to increase a firm's
value or benefit the firm's operations. So Total assets is all the assets, or items of value, a small
business owns.

Based on the following data, EBL growth rate of total assets went up in 2016 and 2017compared
to 2015 growth rate. But it sharply declined to 11.48% in 2018. Again it managed to rise in 2019
with the rate of 18.66%. But still it could not match the highest rate which was 19.97% in 2017 .
As for IFIC, it also declined twice in the following year of 2016 and 2018. Moreover in 2017 it
went up by the highest rate of 28.52%. After a massive decline in 2018 it went up slightly in
2019 from 11.78% to 11.97 %.

The highest growth rate for both bank was in 2017. After that they could not managed to come
back with this rate. But they have to increase the rates more. As it helps to understand how
effectively a company is managing its assets and growing in there sector.

3.5 Total Liabilities

Growth Rate -TOTAL LIABILITIES

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 169,067,307,207 11.20% 166,679,738,095 14.39%
2016 190,613,815,752 12.74% 184,210,390,206 10.52%
2017 231,482,407,666 21.44% 232,709,821,150 26.33%
2018 259,484,693,944 12.10% 260,957,048,169 12.14%
2019 309,595,981,374 19.31% 292,353,363,735 12.03%

Growth Rate- Total Liabilities

30.00%

25.00%

20.00%

15.00% EBL

10.00% IFIC

5.00%

0.00%
2015 2016 2017 2018 2019

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Financial Performance Analysis of EBL & IFIC BANK

Liabilities are what the bank owes to others. Specifically, the bank owes any deposits made in
the bank to those who have made them. Total liabilities are combined debts and obligations that
an individual or company owes to outside parties.

Based on the following data, EBL growth rate for liabilities was increased consecutively from
2015 to 2016. Afterward it declined to 12.10% in 2018 and again went up to 19.31%in 2019. As
for IFIC, it declined in 2016 and again went up in 2017 by 26.33%. However it again decline in
2018 by 12.14%. And slightly decreased in rates by 12.13% in 2019.

As it is very easy to understand that company always want less liabilities. But is important to
maintain minimum ration between liabilities and assets. In this case the growth rate are average,
as they have both increased and decreased rates.

3.6 Total shareholder's equity

Growth Rate -TOTAL SHAREHOLDER'S EQUITY

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 20,496,092,411 2.04% 11,654,213,295 9.65%
2016 20,571,642,404 0.37% 12,840,324,552 10.18%
2017 21,585,565,600 4.93% 20,539,120,655 59.96%
2018 22,966,259,362 6.40% 22,116,234,218 7.68%
2019 25,567,486,351 11.33% 24,596,979,455 11.22%

Growth Rate- Total Shareholder's Equity

70.00%
60.00%
50.00%
40.00%
EBL
30.00%
IFIC
20.00%
10.00%
0.00%
2015 2016 2017 2018 2019

Shareholders' equity is the remaining amount of assets available to shareholders after all
liabilities have been paid. It is the earning in which shareholders have their right on. At the time

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Financial Performance Analysis of EBL & IFIC BANK

of liquidation, it’s the money that the shareholders will get. Shareholders' equity, which is listed
on a company's balance sheet, is used by investors to determine the financial health of a
company. Shareholders' equity represents the amount that would be returned to shareholders if
all a company's assets were liquidated and all its debts repaid. If shareholders' equity is positive,
a company has enough assets to pay its liabilities; if it's negative, a company's liabilities surpass
its assets. The table and the graph both represent the combined information on the growth rate of
Total Equity of EBL and IFIC over a period of a half decade between 2015 and 2019.

Based on the given data, it is seen that the growth rate of the shareholders’ equity of EBL of the
year 2016 went down by 1.67% from 2.04% to 0.37 %. But for IFIC this has increased to
10.18% from 9.65% for the year of 2016. So, investors will prefer IFIC to invest their fund. The
more the growth of this account the better it will be for the shareholders, because, they will have
more when they will walk out.

There is no fall in the growth rate of IFIC and the overall growth rate is in satisfactory level. The
growth rate of EBL is also increasing except the year 2016. But, when it comes to compare both
banks for investing, I’ll choose IFIC over EBL. Because the differences between the increasing
rates of IFIC bank are higher (deviation between growth rates of two years). That means, the
equity of shareholders is increasing so fast.

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Financial Performance Analysis of EBL & IFIC BANK

3.7 Net Interest Income

Growth Rate -NET INTEREST INCOME

EBL IFIC
Year
Amount Growth Rate Amount Growth Rate
2015 3,545,058,005 -11.58% 3,746,212,006 10.45%
2016 5,529,416,483 55.98% 4,375,218,926 16.79%
2017 5,744,739,831 3.89% 5,490,226,338 25.48%
2018 7,506,216,869 30.66% 4,559,806,514 -16.95%
2019 8,158,710,642 8.69% 6,397,880,977 40.31%

Growth Rate- Net Interest Income

60.00%
50.00%
40.00%
30.00%
20.00%
EBL
10.00%
IFIC
0.00%
-10.00%
-20.00%
-30.00%
2015 2016 2017 2018 2019

Net interest income (NII) is the difference between the interest income a bank earns from its
lending activities and the interest it pays to depositors.

It is shown that in 2015 EBL paid much interest than it earned. That’s why the rate is negative.
But the next year it came back with a boom in its rate. On the other-side IFICs net interest
income was soundly growing from the year 2015 to 2017. On 2018 the growth rate of IFIC bank
had fallen but it came back the next year with the 40.31% growth in net interest income. The
growth rate of net interest income of EBL after 2015 was so satisfactory.

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Financial Performance Analysis of EBL & IFIC BANK

3.8 Total Operating Income

Growth Rate -TOTAL OPERATING INCOME

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 9,895,702,732 -2.35% 8,037,022,434 5.39%
2016 11,459,021,486 15.80% 8,542,582,925 6.29%
2017 12,400,687,659 8.22% 9,762,555,155 14.28%
2018 13,139,226,210 5.96% 9,000,708,874 -7.80%
2019 14,597,373,625 11.10% 11,119,742,153 23.54%

Growth Rate- Total Operating Income

30.00%
25.00%
20.00%
15.00%
10.00% EBL
5.00% IFIC
0.00%
-5.00%
-10.00%
2015 2016 2017 2018 2019

The table and the graph both exhibit information on the growth rate of Total Operation Income
of EBL and IFIC bank over a period of a half decade between 2015 and 2019.

Based on the given data, on 2015 operating expenses of EBL was higher than the operating
revenue of EBL. That’s why the rate is shown negative. Otherwise the total operating income of
EBL was in satisfactory level for following years. The growth rate of Total operating income of
IFIC bank was markedly increased till 2017. On 2018 the growth rate of total operating income
of IFIC bank had fallen but it came back the next year with the 23.54% growth in total operating
income.

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Financial Performance Analysis of EBL & IFIC BANK

3.9 Total Operating Expenses

Growth Rate -TOTAL OPERATING EXPENSES

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 4,691,212,191 7.63% 4,391,316,717 -1.39%
2016 5,040,806,781 7.45% 5,122,566,021 16.65%
2017 5,605,072,065 11.19% 5,348,276,120 4.41%
2018 5,995,315,823 6.96% 5,106,005,987 -4.53%
2019 6,387,411,859 6.54% 5,999,296,081 17.49%

Growth Rate- Total Operating Expense

20.00%

15.00%

10.00%

5.00% EBL
IFIC
0.00%

-5.00%

-10.00%
2015 2016 2017 2018 2019

The table and the graph both provide information on the growth rate of Total Operating Expense
of EBL and IFIC bank over a period of a half decade between 2015 and 2019.

By focusing on given data, it is seen that the growth rate of total operating expense of EBL for
the year 2015 was 7.63%. With the following year it was decreased by only 0.18%. In 2017,
there appeared to be a 3.74% rise of the growth rate of Total Operating Expense of EBL. The
Growth rates of Total operating expenses for the year 2018 and 2019 were approximated to each
other.

Negative values of total operating expenses mention that the present years’ expense is less than
previous years’ expense. There is a fall in the total operating expense of IFIC bank in 2015 and
2018. For the year 2016, 2017, 2019 this rate was increasing.

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Financial Performance Analysis of EBL & IFIC BANK

3.10 Earning-Per-Share (EPS)

Growth Rate -EARNINGS PER SHARE (EPS)

Year
EBL IFIC
Amount Growth Rate Amount Growth Rate
2015 3.16 -8.41% 1.76 -50.14%
2016 3.6 13.92% 2.15 22.16%
2017 3.26 -9.44% 2.02 -6.05%
2018 3.79 16.26% 1.17 -42.08%
2019 4.94 30.34% 1.66 41.88%

Growth Rate- Earning Per Share

60.00%

40.00%

20.00%

0.00% EBL
IFIC
-20.00%

-40.00%

-60.00%
2015 2016 2017 2018 2019

Earnings per share, or EPS, tells you how well a company is generating profit for its
shareholders. When earnings-per-share is negative, it means the company is losing money.

On 2015 the rate of EPS of EBL was negative but with the next year it increased its EPS’s
growth rate by 5.51%. However, EBL’s EPS again fall in the year 2017 but it raised its EPS for
further years 2018 and 2019. Earnings- per- share of IFIC bank was negative only for the year
2015, 2017 and 2018. Otherwise the growth rates of IFIC bank for the year 2016 and 2019 were
22.16% and 41.88% respectively

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Financial Performance Analysis of EBL & IFIC BANK

4.0 Findings & Discussions

In terms of financial state, it is difficult to get the exact picture of the company as the banks are
established in different times and are well performing in different sector. This comparison is very
limited in nature as few important financial details have been focused.

• After doing the analysis of growth rates we see that EBL have more cash assets compare to
IFIC . It shows the company's better performance. It means EBL has more money to invest.
• Secondly, The growth rates of loan and advance is not quite satisfactory for both banks
because one of its main source of revenue keeps falling.
• IFIC has more increasing rates for shareholders equity compare to EBL bank. So, if we think
about investing, we will choose IFIC Bank over EBL Bank.
• EBL investment rates are low compare to its cash rate. As EBL has more liquid to invest than
IFIC . But its investments rates are not that good.
• IFIC has more higher rates for total operating income.
• If we look at the earning per share of both bank, IFIC has more increasing rates compare to
EBL. It shows that bank earn more money on its assets and offer a profitable investments to
the equity holders.

5.0 Recommendations
After observing, and collecting all information about the banks we find out that there is some
gaps which also the weakness of the banks. So we make some suggestions to improve-

• There are a lot of banks now in Bangladesh and customers now have lots of options. So a
bank should do everything possible for them to do to retain its customers.
• They should promote there products and services especially, the ones that will help the bank
to attract most of its customers.
• The banks have decreasing rates for loans and advances. This may be solved by revising the
lending policy of the banks. Such as maximizing the approval limit, appointing trained
managers and loan officers.
• EBL should do more investments to increase its profits.
• Measuring the rates of shareholders equity, operating profit and EPS, EBL has decreasing
rates. So the management should come up with new strategies and decision so that the bank
work more and survive in the market.

25
Financial Performance Analysis of EBL & IFIC BANK

6.0 Conclusions

Eastern Bank is one of the pioneer private banks in the country. It is one of the front line banks
due to its specialized and sophisticated banking services rendered to its customers. In order to
remain competitive in the market it constantly looks for ways and means to improve
productivity. According to the study the performance of this bank is satisfactory. In this study to
evaluate the financial performance of this bank various financial parameters were considered and
Eastern Bank was found as a fast growing bank and simultaneously performing well in almost all
the areas. To keep with this pace of growth and improvement they now should more vigilant on
what their customers want and should be more vigilant while giving loans to the clients in order
to reduce the defaulter rate. The reliability of the customers on EBL is increased promptly day by
day. In EBL all the staffs are performing sands serving the customers untiringly. EBL keeps
itself busy to serve the society, to improve the lifestyle of the people, to develop the business
environment. IFIC Bank Limited also makes significant contribution to the economy. They are
performing their activities, as a result not only the bank but also the economy is benefited. The
bank is performing general banking, Loan-advance, foreign exchange activities etc, as a result
they are mobilizing the money and do well for the economy.

Although they have some limitations in their services, they are doing tremendous job for the
economy. If they can reduce their limitation and introduce new ideas, they can do better in the
banking sector of Bangladesh

26
Financial Performance Analysis of EBL & IFIC BANK

References

About ebl. (n.d.). Retrieved September 25, 2020, from Eastern Bank Ltd.:
https://www.ebl.com.bd/

ABOUT IFIC. (n.d.). Retrieved SEPTEMBER 15, 2020, from IFIC BANK LIMITED:
https://www.ificbank.com.bd/

Annual report. (n.d.). Retrieved 08 29, 2020, from IFIC BANK LIMITED:
https://www.ificbank.com.bd/annual-report

Annual Report. (n.d.). Retrieved 08 30, 2020, from Eastern Bank ltd.:
https://www.ebl.com.bd/financial-reports

EBL BANK. (n.d.). Retrieved from Assignment point: https://www.assignmentpoint.com/

IFIC BANK. (n.d.). Retrieved September 10, 2020, from Assignment point:
https://www.assignmentpoint.com/

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