Financial Statement Analysis of Private Banks Ltd.-2025

Sonargaon University
Thesis Report
On
Financial Statement Analysis of Private Banks in
Bangladesh
Submitted To
Md. Masud Rana
Assistant Professor
Department of Business Administration
Submitted By
Irsha Akter
ID No: MBA 2001019016
Major: Accounting
Program: MBA
Date of Submission: 3rd February, 2021
1
Letter of Transmittal
Date: 3rd February, 2021

To
Md. Masud Rana

Assistant Professor
Subject: Submission of the Thesis Report.
Dear Sir,
This is a great pleasure for me to submit the thesis on “Financial Statement Analysis of Private
Banks in Bangladesh” which is partial requirement of my M.B.A. program. While preparing
this report, I tried my best to follow the instructions that you have given me.
It is based on secondary data analysis. I have furnished all the things what I have learnt during
the thesis analysis at five selected private Banks.
I shall be highly encouraged if you are kind enough to receive this thesis paper.
Sincerely yours
______________
Irsha Akter
ID No: MBA 2001019016
Major: Accounting
Program: MBA
2
Students Declaration
I do hereby declaration that the Thesis report title “Financial Statement Analysis of Private
Banks in Bangladesh” is an original research work completed by me under the guidance and
supervision Md. Masud Rana, Assistant Professor, Department of Business Administration,
Sonargaon University.
It is neither copied out from anybody work non published fully or partly in any journal in
Bangladesh or abroad but data has been taken from secondary sources like internal publication.
______________
Irsha Akter
ID No: MBA 2001019016
Major: Accounting
Program: MBA
3
Supervisor’s Certificate
This is to approve that this Thesis report on “Financial Statement Analysis of Private Banks in
Bangladesh” has been prepared by Irsha Akter, ID No: MBA 2001019016, Department of
Business Administrative under my supervisor.
I have monitored him activities and helped him to write the report from time to time. I think, he
has done a good job to prepare this report within the specified time framed.
I wish him every success.
………………….
Md. Masud Rana

Assistant Professor
4
Acknowledgement
At the beginning, I would like to express my deepest gratitude to the almighty Allah for giving
me the strength and the composure to finish the report within scheduled time.
I would like to express my gratitude to my supervisor and teacher Md. Masud Rana for granting
me this interesting and time-befitting topic. His sincere and close supervision help me to
complete the report successfully. His suggestions and comments to make the report a good one
was really a great source of inspiration and spirit for me. He used to extend his helping hands
whenever I was in a complete fog. I am also grateful to other faculty members who extend their
cooperation and encouragement to complete the report.
Finally, I would like to convey my best regards to all of my fellow classmates and teachers for
extending their cooperation.
5
Executive Summary
Financial Ratio analysis is an important part of any financial organizations because it gives an
overall idea about the financial strength of an organization. Especially for banks it has an
immense importance. To identify the potentiality or weaknesses, bank‟s top management needs
to be properly analyzed all of the important financial ratios. As banks are deals with money, they
have to be very accurate with the management of their assets and liability and this will be
possible only when they are taking decision based on the financial ratio trend.
There are different financial ratios which are the concern of the researchers. Mainly Liquidity
ratio, Leverage ratio, Profitability ratio, and market value ratios plays an important role to
indicate the efficiency of bank management. Liquidity ratios provide information about a firm's
ability to meet its short-term financial obligations. Financial leverage ratios provide an indication
of the long-term solvency of the firm. Profitability ratios offer several different measures of the
success of the firm at generating profits. The market value ratios, relates the firm‟s stock prices
to its earnings, cash flows, and book value per share. These ratios give management an indication
of what investors think of the company‟s past performance and future prospects. The main
objectives of this report are to explore the financial ratios namely Liquidity ratio, Leverage ratio,
Profitability ratio, and market value ratio of Social Islami Bank Ltd, Shahjalal Islami Bank Ltd,
Islami Bank Bangladesh Ltd, Al-Arafah islami Bank Ltd And First Security Islami Bank Ltd to
analyze the nature of the ratios, and make some recommendation about the way of improving the
ratio trend.
6
Table of Content
Title Page No
Title Page a.
Letter of Transmittal
Supervisor‟s Certificate iii
Acknowledge
Executive Summary
Chapter -1: Introduction
1.1 Introduction
1.2 Origin of the thesis report
1.3 Objectives of the thesis report
1.4 Scope of the thesis report
1.5 Methodology of the thesis report
1.6 Limitations of the thesis report
Chapter – 2: Overview of Five Selected Banks:
2.1 Islami Bank Bangladesh Ltd
2.2 Social Islami Bank Ltd
2.3 Shahjalal Islami Bank Ltd
2.4 Al-Arafah Islami Bank Ltd
2.5 First Security Islami Bank Ltd.
Chapter – 3: Theoretical Aspect of Financial Performance Analysis:
3.1 Financial performance analysis

3.2 The analysis of financial statement represent three m
3.3 Review of literature
3.4 Financial statement
3.5 Limitation of financial statement
3.6 Analysis and interpretation of financial statement
3.7 Types of analysis
i. Horizontal analysis
ii. Vertical analysis
3.8 Financial Ratios
7
a) Liquidity Ratios
b) Leverages Ratios
c) Profitability ratios
d) Market Value Ratios
Chapter -4: Analysis and Interpretation:
4.1 Current Ratio
4.2 Return on Asset
4.3 Return on Equity
4.4 Cash Ratio
4.5 Cost Income Ratio
4.6 Debt to Total Asset
4.7 Debt to Total Equity
4.8 Earnings per Share
4.9 Price Earnings Ratio
4.10 Gross Profit Margin
4.11Operating Profit Margin
4.12 Net Profit Margin
Chapter – 5: Findings, Recommendations and Conclusion
5.1 Findings
5.2 Recommendations
5.3 Conclusion
Bibliography
Appendix
8
Chapter-1
Introduction
9
1. 1 Origin of the thesis report
The four years Bachelor of Business Administration program consists of twelve semesters‟
academic program for the building up of the theoretical knowledge about business administration
which is the base of practical knowledge and it attempts to provide business graduates an
orientation to a real life business situation in which they can observe and evaluate the use and
applicability of the theoretical concepts which were taught in the classrooms.
This report “Financial Statement Analysis of Private Banks in Bangladesh.”. The secondary data
required for preparing this thesis has been collected from the annual reports of most recent years.
1.2 Objective of the thesis report

The main objective of the thesis is to measure the financial statement analysis of private Banks in
Bangladesh measure the adequacy of the liquidity and profit maximization. The major objectives
of this study are specified as follows:
 To fulfill academic requirement.
 To measure and evaluate the liquidity position of Private Banks in Bangladesh.
 To explore different financial ratios and their nature.
 Analyze the nature of ratios.
 Compare the ratios of different banks.
 Make some important recommendations about the way of improving ratio trend.
 To offer humble suggestions based on the above study.
1.3 Scope of the thesis report

This study has focused upon the financial performance analysis of private banks (IBBL, AIBL,
SIBL, SIBL and FSIBL) in Bangladesh. I hope this study will help me to know more clearly
about the financial performance analysis of private banks in Bangladesh.
10
1.4 Methodology of the thesis report
Primary data:
Primary data are not used in this report
Secondary data:
The report is done based on secondary information. The major source of data for preparing the
report is based on secondary information like annual reports, Journals.
Data Processing and Analysis:

The collect data from the secondary sources were analyzed to reveal the nature of financial
statement analysis. Ratio analysis technique is used in analysis. Computer generated Word
Processing programs, such as; MS Word was used to generate the thesis report. The main
analysis of data was done with the following computer programs:
1. The Powerful Spreadsheet Analyzer MS Excel

2. Word Processor MS Word.
1.5 Limitations of the Thesis Report
As a student Business Administration, this is my initiative for making the report on “A Study on
Financial Performance Analysis of Private Banks in Bangladesh” through using the Annual
Reports of the organizations. Beside this I have faced the following hindrances in preparing this
thesis report:
 The main limitation while preparing this report was time. So it was not possible to focus
everything deeply.
 The time period of this study is very short. We had only 10 weeks in my hand to
complete this report, which was not enough. So I could not go in depth of the study.
 It was really difficult for me to accumulate confidential financial data.

 Banking Technology is newly come to our country, so, there is no accurate information
available.
11
 The term paper was prepared within a very short time considering the topics related to it.
That‟s why; it was not possible to demonstrate all aspects of the report.
 Data from different sources were quite inconsistent which created some problems in
making the report & compelled me to verify the data diligently.
This is my truthful declaration that the thesis is prepared only on secondary data. But in some
cases, I found the problem of shortage of necessary data and in that cases I took hypothetical
data, so there is a little chance of misappropriation.
12
CHAPTER 2
Theoretical Aspect of Financial Performance Analysis
13
2.1 Financial Performance Analysis:
Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of balance
sheet and profit and loss account. It also helps in short-term and long term forecasting and
growth can be identified with the help of financial performance analysis. The dictionary meaning
of „analysis‟ is to resolve or separate a thing in to its element or components parts for tracing
their relation to the things as whole and to each other. The analysis of financial statement is a
process of evaluating the relationship between the component parts of financial statement to
obtain a better understanding of the firm‟s position and performance. This analysis can be
undertaken by management of the firm or by parties outside the namely, owners, creditors,
investors.
2.2 The analysis of financial statement represents three major steps:
 The first step involves the re-organization of the entire financial data contained the
financial statements. Therefore the financial statements are broke down into individual
components and re-grouped into few principle elements according to their resemblances
and affinities. Thus the balance sheet and profit and loss accounts are completely re-
casted and presented in the condensed form entirely different from their original shape.
The second step is the establishment of significant relationships between the individual
components of balance sheet and profit and loss account. This is done through the
application tools of financial analysis like Ratio analysis, Trend analysis, Common size
balance sheet and comparative Balance sheet.Finally, the result obtained by means of
application of financial tools is evaluated.
 In brief financial analysis is the process of selection, relation and evaluation of financial
statements. The tools of analysis are used for determining the investment value of the
business, credit rating and for testing efficiency of operation.
Thus financial analysis helps to highlight the facts and relationships concerning managerial
performance, corporate efficiency, financial strength and weakness and credit worthiness of the
company.
14
2.3 Financial Accounting:
Financial accounting is the process of systematic recording of the business transactions in the
various books of accounts maintained by the organization with the ultimate intention of
preparing the financial statement there from. These financial statements are basically in two
forms. One, profitability statement which indicates the result of operations carried out by the
organization during a given period of time and second balance sheet which indicates the state of
affairs of the organization at any given point of time in terms of its assets and liabilities.
Main purpose of financial accounting is to ascertain profit or loss and to indicate financial
position of an enterprise. Two fundamental statements of financial accounting are income and
expenditure statement and balance sheet. The profit and loss account or income and expenditure
account is prepared for a particular period to find out the profitability of the firm and balance
sheet is prepared on a particular date to determine the financial position of the firm.
Financial accounting summaries transactions taking place during a period with the objective of
preparing the financial statement.
2.4 Financial Statement
„Financial Statement‟ refers to formal ad original statements prepared by a business concern to

disclose its financial information
According to John.N.Meyer, “The financial statement provides summary of accounts of a
business enterprise, the balance sheet reflecting assets, liabilities and capital as on a certain date
and the income statement showing the result of operation during a certain period”
The financial statements are prepared with a view to depict the financial position of the concern.
They are based on the recorded facts and are usually expressed in monetary terms. The financial
statement are prepared periodically that is generally for the accounting period.
The term financial statement has been widely used to represent two statements prepared by
accountants at the end of specific period. They are:
 Profit and loss a/c or income statement

 Balance sheet or statement of financial position
15
2.5 Limitation of Financial Statement:
 Information shown in financial statement is not precise since it is based on

practical experience and the conventions and rules developed therefore
 Financial statements do not always disclose the correct financial position of the
business concern as they are influenced by the personal opinions, judgment,
subjective view and whims of accountant of each concern
 Balance sheet of a concern is a statics document it disclose the financial position
of a concern on a particular date.
 Information disclosed by profit& loss a/c may not be the real profit as many items
shown in the profit & loss a/c may not the real
 Financial statements are dumb, because they speak themselves. The statements
require further detailed analysis and interpretation.
 Financial statement of the one period may not be comparable.
 Financial statement does not disclose the contribution of man towards the
efficiency of the business.
2.6 Analysis and Interpretation of Financial Statement:
The various tools of financial statement are used for decision-making process. The financial
statement becomes a tool for future planning and forecasting. The analysis of these statements
involves their division according to similar groups and arranged in desired form. The
interpretation involves the explanation of financial facts in a simplifier‟s manner.
16
Objectives of Analysis and Interpretation:
The users of financial statement have definite objectives to analysis and interpret .Therefore;
there are variations in the objectives of interpretation by various classes of people. However,
there are certain specific and common objectives which are listed below:
 To interpret the profitability and efficiency of various business activities with the
help of profit and loss account;
 To measure managerial efficiency of the firm;
 To ascertain earning capacity in future period;
 To measure short-term and long -term solvency of the business;
 To determine future positional of the concern;
 To measure utilization of various assets during the period;
 To compare operational efficiency of similar concerns engaged in the same
industry
2.7 Type of Analysis:
The process of financial statement analysis is of different types. The process of analysis is
classified on the basis of information used and „modus operandi‟ of analysis. The classification is
as under:
i. Horizontal analysis
ii. Vertical analysis
17
Horizontal Analysis:
The first method is the use of horizontal and vertical analysis. Horizontal analysis is the
comparison of financial information over a series of reporting periods, while vertical analysis is
the proportional analysis of a financial statement, where each line item on a financial statement is
listed as a percentage of another item. Typically, this means that every line item on an income
statement is stated as a percentage of gross sales, while every line item on a balance sheet is
stated as a percentage of total assets. Thus, horizontal analysis is the review of the results of
multiple time periods; while vertical analysis is the review of the proportion of accounts to each
other within a single period.
Vertical Analysis:
The second method for analyzing financial statements is the use of many kinds of ratios. You use
ratios to calculate the relative size of one number in relation to another. After you calculate a
ratio, you can then compare it to the same ratio calculated for a prior period, or that is based on
an industry average, to see if the company is performing in accordance with expectations. In a
typical financial statement analysis, most ratios will be within expectations, while a small
number will flag potential problems that will attract the attention of the reviewer.
18
Chapter-3
Overview of Five Selected Private Banks
19
3.1 Islami Bank Bangladessh Limited
Bangladesh is one of the largest Muslim countries in the world. The people of this country are
deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah.
Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in
accordance with the precepts of Islam. The establishment of Islami Bank Bangladesh Limited on
March 13, 1983, is the true reflection of this inner urge of its people, which started functioning
with effect from March 30, 1983. Islami Bank Bangladesh Limited is a Joint Venture Public
Limited Company engaged in commercial banking business based on Islamic Shari'ah with
63.09% foreign shareholding having largest branch network (250 Branches & 30 SME/Krishi
Branches i.e. total 280 Branches) among the private sector Banks in Bangladesh. Authorized
Capital of the Bank is Tk. 20,000.00 Million ($257.23 Million) and Paid-up Capital is Tk.
14,636.28 Million ($188.25 Million) having shareholders as on 30th June 2013.This Bank is the
first of its kind in Southeast Asia. It is committed to conduct all banking and investment
activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a
new horizon and ushered in a new silver lining of hope towards materializing a long cherished
dream of the people of Bangladesh for doing their banking transactions in line with what is
prescribed by Islam.
With the active co-operation and participation of Islamic Development Bank (IDB) and some
other Islamic banks, financial institutions, government bodies and eminent personalities of the
Middle East and the Gulf countries, Islami Bank Bangladesh Limited has by now earned the
unique position of a leading private commercial bank in Bangladesh.
3.2 Shahjalal Islami Bank Limited
ShahjalalIslami Bank Limited (SJIBL) commenced its commercial operation in accordance

with principle of Islamic Shariah on the 10th May 2001 under the Bank Companies Act, 1991.
During last nine years SJIBL has diversified its service coverage by opening new branches at
different strategically important locations across the country offering various service products
both investment & deposit. Islamic Banking, in essence, is not only INTEREST-FREE banking
business, it carries deal wise business product thereby generating real income and thus boosting
GDP of the economy.
20
3.3 Al-Arafah Islami Bank Limited
With the objective of achieving success here & hereafter by pursuing the way directed by Allah
and the path shown by prophet Rasul (SM), Al ArafahIslami Bank Ltd was established
(registered) as a private limited company on 18 June 1995. The inaugural ceremony took place
on 27 September 1995. The authorized capital of the Bank is Tk.2500.00 million and the paid up
capital is BDT 1153.18 million as on 31.12.2007. Renowned Islamic Scholars and pious
businessmen of the country are the sponsors of the Bank. 100% of paid up capital is being owned
by indigenous shareholders.
The equity of the bank stood at BDT 2037.50 million as on 31 December 2007, the manpower
was 1033 and the number of shareholders was 12013. It has achieved a continuous profit and
declared a good dividend over the years. High quality customer service through the integration of
modern technology and new products is the tool of the bank to achieve success. The bank has a
diverse array of carefully tailored products and services to satisfy customer needs.
The Bank is committed to contribute significantly to the national economy. It has made a
positive contribution towards the socio economic development of the country with 60 branches
of which 17 is AD throughout the country.
3.4 Social Islami Bank Limited
The formal corporate sector, this Bank would, among others, offer the most up-to date banking
services through opening of various types of deposit and investment accounts, financing trade,
providing letters of guarantee, opening letters of credit, collection of bills effecting domestic and
international transfer, leasing of equipment and consumer durables, hire purchase and installment
sale for capital goods, investment in low-cost housing and management of real estates,
participatory investment in various industrial, agricultural , transport, educational and health
projects and so on.
21
3.5 First Security Islami Bank Limited
First Security Islami Bank Limited (FSIB) was incorporated in Bangladesh on 29 August 1999
as a banking company under Companies Act 1994 to carry on banking business. It obtained
permission from Bangladesh Bank on 22 September 1999 to commence its business. The Bank
carries banking activities through its 52 branches in the country. The commercial banking
activities of the bank encompass a wide range of services including accepting deposits, making
loans, discounting bills, conducting money transfer and foreign exchange transactions, and
performing other related services such as safe keeping, collections and issuing guarantees,
acceptances and letter of credit.
22
Chapter-4
Financial Ratios
23
4.1 Financial Ratios
In finance, a financial ratio or accounting ratio is a ratio of two selected numerical values taken
from an enterprise's financial statements. There are many standard ratios used to try to evaluate
the overall financial condition of a corporation or other organization. Financial ratios may be
used by managers within a firm, by current and potential shareholders (owners) of a firm, and by
a firm's creditors. Security analysts use financial ratios to compare the strengths and weaknesses
in various companies. If shares in a company are traded in a financial market, the market price of
the shares is used in certain financial ratios.
Values used in calculating financial ratios may be taken from the balance sheet, income
statement, cash flow statement and statement of retained earnings. These comprise the firm's
"accounting statements" or financial statements.
Financial ratios are useful indicators of a firm's performance and financial situation. Most ratios
can be calculated from information provided by the financial statements. Financial ratios can be
used to analyze trends and to compare the firm's financials to those of other firms. In some cases,
ratio analysis can predict future bankruptcy.
Financial ratios can be classified into five groups
 Liquidity ratio
 Activity ratio
 Leverage ratio
 Profitability ratio
 Market value ratio
24
a) Liquidity Ratio
Liquidity ratios provide information about a firm's ability to meet its short-term financial
obligations. They are of particular interest to those extending short-term credit to the firm. Two
frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio.
The current ratio is the ratio of current assets to current liabilities:
Current assets
Current Ratio =
Current Liabilitie s
Current assets includes,

 Cash
 Accounts Receivable
 Notes Receivable
 Inventory
 Prepaid Expenses
 Marketable Securities
Current Liabilities includes,
 Short Term Debt
 Accounts Payable
 Accrued Liabilities
 Income tax Payable
 Other Debt
25
b) Leverage Ratios
Financial leverage ratios provide an indication of the long-term solvency of the firm. Unlike
liquidity ratios that are concerned with short-term assets and liabilities, financial leverage ratios
measure the extent to which the firm is using long term debt.
The debt ratio is defined as total debt divided by total assets:
Total Liabilitie s
Debt to Total Ratio =
Total assets
The debt-to-equity ratio is total debt divided by total equity:
Total debt
Debt to Equity Ratio =
Total Equity
Debt ratios depend on the classification of long-term leases and on the classification of some
items as long-term debt or equity.
c) Profitability Ratios
The ratio of net income to net sales is called the profit margin. It indicates the profitability
generated from revenue and hence is an important measure of operating performance. It also
provides clues to a company‟s pricing, cost structure, and production efficiency.
net income
Profit margin =
net sales
Return on assets is a measure of how effectively the firm's assets are being used to generate
profits. It is defined as:
Net Income
Return on Assets =
Total Assets
Return on equity is the bottom line measure for the shareholders, measuring the profits earned
for each dollar invested in the firm's stock. Return on equity is defined as follows:
Net income
Return on Equity =
Stockholde r' s Equity
26
d) Market value Ratio
Earnings per share indicate the amount of earnings for each common share held.
net income - preferred dividends

Earnings per share =
number of common stock outstanding
The price/earnings ratio evaluates the enterprise‟s relationship with its shareholders.
market price per share

Price/earnings ratio =
earnings per share
The dividend yield is calculated as,
dividends per share

Dividend yield =
The dividend payout is calculated as,
dividends per share

Dividend payout =
earnings per share
27
Chapter-5
Analysis and Interpretation
28
5.1 Current Ratio
The ratio mainly used to give an idea of the company‟s ability to pay back its short-term
liabilities with its short-term assets. The higher the current ratio, the more capable the company
is of paying its obligations.
The Current Ratio Formula is:
current asset
Current ratio =
current liabilitie s
Particulars 2019 2018 2017 2016 2015

Islami Bank Bangladesh Ltd 1.06 1.06 1.07 1.09 1.14
Social Islami Bank Ltd 1.02 1.03 1.11 1.28 .75
ShahjalalIslami Bank Ltd 1.07 1.08 1.05 1.10 1.09
Al-ArafahIslami Bank Ltd 1.04 1.03 1.04 1.09 1.09
First Security Islami Bank Ltd 1.02 1.03 1.11 1.04 1.04
Chart Title
islami bank bangladesh ltd social islami bank ltd shahjalal islami bank ltd
al-arafah islami bank ltd first security islami bnak ltd
1.28
1.14 1.091.09
1.061.021.021.071.04 1.061.031.031.081.03 1.071.111.111.05 1.09 1.11.09
1.04 1.04
0.75
2019 2018 2017 2016 2015
Figure: Current Ratio
29
The analysis shows that Social Islami Bank Ltd. is really very good in current ratio. As a result,
we have seen that in 2016, their current ratio was 1.28 that is the best position among five years
current ratio analysis. At the same the current ratio in 2019 was low rather it was good too. The
position of IBBL, SJIBL, AIBL and FSIBL were not bad but good. Now it is clear that the
position of Social Islami Bank Ltd. is very better than these two banks.
5.2 Return on asset
A ratio that measure a company‟s earnings before interest and (EBIT) against its total net assets.
The ratio is considered an indicator of how effectively a company is using its assets to
generate earnings before contractual obligations must be paid.
EBIT
Return on Asset=
Total net assets
Particulars 2019 2018 2017 2016 2015

Islami Bank Bangladesh Ltd .55% .59% .44% 0.67% 0.97%
Social Islami Bank Ltd 1.04% 2.06% 2.08% 2.36% 1.67%
ShahjalalIslami Bank Ltd 1.40% 2.06% 2.08% .59% 1%
Al-ArafahIslami Bank Ltd .99% 1.23% 1.08% 1.10% 1.31%
First Security Islami Bank Ltd .41% .51% .31% 0.35% 0.53%
Chart Title
al-arafah islami bank ltd first security islami bank ltd
2.36%
2.06%2% 2.08%
2.08%
1.67%
1.40% 1.31%
1.23%
1.04% 0.99% 1.08% 1.10% 1%
0.97%
0.55% 0.59% 0.67% 0.59%
0.41% 0.51% 0.44% 0.53%
0.31% 0.35%
2019 2018 2017 2016 2015
Figure: Return on Asset
30
In this graph we see that Social Islami Bank Ltd has highest of ratio of return on total asset
over the 2019,2018,2017,2016 and 2015 in 2016 we get from analyzing last five years it was
overall in good position respectively 1.04%,2.06%,2.08% 2.36%,&1.67% . The means this bank
is effectively used to generate earning before contractual obligation to be paid.
5.3 Return on Equity
The amount of net income returned as a percentage of shareholders equity. Return on equity
measures a corporation‟s profitability by revealing how much profit a company generates whit
the money shareholders have invested.
ROE is expressed as a percentage and calculated as:
net income
Return on Equity=
shareholders equity
Particulars 2019 2018 2017 2016 2015

Islami Bank Bangladesh Ltd 10% 9% 7% 9% 11%
Social Islami Bank Ltd 10% 16% 16% 14% 11%
ShahjalalIslami Bank Ltd 10% 16% 16% 7% 13%
Al-ArafahIslami Bank Ltd 14% 15% 12% 13% 14%
First Security Islami Bank Ltd 11% 13% 9% 8% 12%
Chart Title
16%16%15% 16%16%
14% 13% 14% 13% 13%14%12%
12%
10%10%10% 11% 9% 9% 9%
11%11%
7% 7% 8%
2019 2018 2017 2016 2015
31
Figure: Return on Total Equity
In this graph we can see that ShahjalalIslami Bank Ltd is highly capable to generate income as
percentage of shareholder equity in the year 2019, 2018, 2017, 2016 and 2015 than IBBL, SIBL,
AAIBL and FSIBL. So, we can say that ShahjalalIslami Bank Ltd. is better position than other
banks.
5.4 Cash ratio
The cash is most commonly used as a measure of company liquidity. It can therefore determine
if, and how quickly, the company can repay its short-term debt. A strong cash ratio is useful to
creditors when deciding how much debt, if any they would be willing to extend to the asking
party.
cash cash equivalent s

Cash Ratio =
total current liabilitie s
Particulars 2019 2018 2017 2016 2015

Social Islami Bank Ltd 0.11 0.14 0.18 0.17 0.18
Chart Title
0.22
0.19 0.18 0.18
0.17 0.17 0.16 0.17
0.15 0.15 0.15
0.13 0.130.14 0.14 0.14
0.12
0.11 0.11 0.11 0.11 0.11 0.11 0.110.12
2019 2018 2017 2016 2015
32
Figure: Cash Ratio
The above graph shows that FSIBL is quicker to pay it current liability in cash. AIBL was good
in 2016 and 2015 which was 0.12. From analysis IBBL is strong than AIBL, SJIBL, SIBL and
FSIBL.
5.5 Cost income ratio
There is a formula for calculating cost income ratio. This formula is:
��
��
Particulars 2019 2018 2017 2016 2015

Chart Title
1.15
0.75 0.76 0.74 0.75 0.72 0.74 0.75
0.51 0.54 0.53 0.53 0.57 0.54

0.430.43 0.470.46
0.410.41 0.410.41 0.41 0.37
0.35
2019 2018 2017 2016 2015
Figure: Cost Income Ratio
33
The above graph shows that IBBL is very good position in cost income. FSIBL was good in
2016 and 2015 which was 0.54, 0.57. From analysis IBBL is strong than AIBL, SJIBL, SIBL and
FSIBL.
5.6 Debt to Total asset
Total debt to total assets is a leverage ratio defines the total amount of debt relative to assets.
This enables comparisons of leverage to be made across different companies. The higher the
ratio the higher the degree of leverage and consequently financial risk. This is a broad ratio that
includes long-term and short-term, as well as all assets tangible and intangible.
short term debt long term debt

Debt to total Asset=
total assets
Particulars 2019 2018 2017 2016 2015

Chart Title
96% 96% 96%
95%
93% 93% 93% 93%
92% 92% 92% 92% 92% 92%
91% 91%91% 91%91% 91%91%91% 91%
90% 90%
2019 2018 2017 2016 2015
34
Figure: Debt to Total Asset
The higher the ratio represents the higher the degree of leverage, and consequently financial risk.
So, from this chart we can say that Al-ArafahIslami Bank in good position because this average
debt to total asset, IBBL, SJIBL, SIBL and FSIBL is in the financial risk because it on an
average 92% of total asset collects from debt.
5.7 Debt to Total equity
A measure of a company financial leverage calculated by dividing its total liabilities into
stockholders equity. It indicates what proportion of equity and debt the company is using to
finance its assets.
total liabilitie s
Debt to Total Equity =
shareholders equity
Particulars 2019 2018 2017 2016 2015

Islami Bank Bangladesh Ltd 16.88% 15.91% 14.82% 4.77% 4.62%
Social Islami Bank Ltd 16.15% 13.43% 10.26% 10.28% 9.21%
ShahjalalIslami Bank Ltd 16.15% 13.43% 10.26% 9.84% 10.74%
Al-ArafahIslami Bank Ltd 11.76% 10.63% 12.79% 9.76% 9.63%
First Security Islami Bank Ltd 28.45% 27.15% 27.55% 23.50% 23.15%
Chart Title
28.45%
27.15%
23.50% 23.15%
21.90%
16.88%
16.15%
16.15% 15.91% 14.82%
13.43%
13.43% 12.79%
11.76% 10.63% 10.74%
10.26%
10.26% 10.28%
9.84%
9.76% 9.21% 9.63%
4.77% 4.62%
2019 2018 2017 2016 2015
35
Figure: Debt to Total Equity
The debt to equity ratio is a financial ratio indicating the relative proportion of shareholders
equity and debt and used to finance a company asset.
Lower values of debt to equity ratio are favorable indicating less risk. Higher debt to equity ratio
is unfavorable because it means that the business relies more on external lenders thus it is at
higher risk, especially at higher interest rates.
In this graph SIBL is in good position in the term of debt to equity over the three years
respectively and its ratio is lower than IBBL, SJIBL, AAIBL and FSIBL. Because for financing
SIBL collect less capital from the shareholder. And they have good combinations of debt and
equity.
5.8 Earnings per Share
The position of a company profit allocated to each outstanding share of common stock. Earnings
per share serve as an indicator of a company‟s profitability.
net income
EPS =
weighted avg. outs tan ding shares
Particulars 2019 2018 2017 2016 2015
36
Chart Title
al-arafah islami bank ltd first seurity islami bank ltd
3.4
3.15 3.1 3.13.07
2.91 2.952.95
2.77 2.71
2.48 2.46
2.25 2.2
2.08 2.04
1.971.97 1.89 1.85 1.87
1.741.78
1.58
1.02
2019 2018 2017 2016 2015
Figure: Earning Per Share
As we know that EPS serves as an indicator of a bank‟s profitability, so in this sector FSIBL has
not become enough successful due to its some lacking. Consequently the result of this bank‟s
EPS in 2019, 2018, 2017, 2016 and 2015 were 1.89, 2.08, 1.85, 1.58& 1.85 which was helpful
the bank to get success. On the country in 2014 this bank was lowest EPS and the graph showed
that its EPS was 1.58. But Al-Arafah Islami Bank Limited was good in 2019, 2018 and as 3.15,
3.07. In analysis IBBL EPS is not bad in overall five years.
5.9 Price Earnings Ratio
The price/earnings ratio evaluates the enterprise‟s relationship with its shareholders.

Price/earnings ratio =
earnings per share
37
Particulars 2019 2018 2017 2016 2015
Chart Title
al-arafah islami bank ltd first islami bank ltd
12.33
12.24 12.54 12.35
11.33 11.24 11.27
10.11 9.99
8.33 8.6
7.64 7.66 7.768.08
6.68 6.53 6.776.91
5.935.93
5.18 4.894.89 5.02
2019 2018 2017 2016 2015
Figure: Price Earnings Ratio
Price earnings ratio of IBBL and SJIBL shows an increasing trend from year 2015 to 2019. On
the other hand, SIBL, AIBL and FSIBL shows decreasing trend from year 2015 to 2019. The
reason behind the increasing trend is the substantial increase in the market price per share over
the year 2015 to 2019. But in year 2019, SIBL, AIBL and FSIBL show a positive trend.
38
5.10 Gross profit margin
In the below there is gross profit margin ratio in a chart. This chart belong all the gross profit and
all the sales revenue for the year of 2015-2019. In this chart one thing is very much clear that all
the year there have some changes of this ratio. All the tears are not same. Below the chart all the
details of every year‟s calculation are given very clearly.
gross profit
Gross Profit margin = (%)
total revenue
Particulars 2019 2018 2017 2016 2015

Chart Title
77.00%
76.00%
69.00%
68.00%
64.00%
63.00%
57.00% 55.00%
53.00% 52.00% 52.00% 52.00% 49.00% 53.00%
48.00% 46.00% 47.00% 49.00%48.00%
45.00%
37.00%
37.00% 37.00%
29.00% 32.00%
2019 2018 2017 2016 2015
Figure: Gross profit Margin
In this graph we can see that in 2019, 2018, 2017, 2016 and 2015 the gross profit of Islami Bank
Bangladesh Ltd. is respectively 53%, 52%, 49% 47%& 45%, and Social Islami Bank Ltd. Is
39
respectively 77%, 69%,63%, 55% &50% and Shajalal Islamic bank Ltd. Respectively 76%,
68%, 64% 38%, 32% and Al- ArafahIslami Bank Ltd. is respectively 52%, 48%, 46%, 37%,
49% and First Security Islami Bank Ltd. Gross profit margin respectively 57%, 52%, 53% 29%,
38%.
From this graph we can say that Social Islami Bank Ltd. is more efficient manage their labor
force and capital than the Islami Bank Bangladesh Ltd. in 2015. The Gross profit of Social Islami
Bank is 77% which highest gross profit margin in this graph respectively Social Islami Bank is
also in highest by gross profit margin in the year 2019, 2018, 2017.
5.11 Operating profit margin
Operating margin is a measurement of what proportion of a company‟s revenue is left over after
paying for variable costs of production such as wages, raw materials etc. A healthy operating
margin is required for a company to be able to pay for its fixed costs, such as interest on debt.
Also known as “Operating profit margin”.
operating profit
Operating Margin = (percentage)
total revenue
Particulars 2019 2018 2017 2016 2015
40
Chart Title
71.00%
68.00%
64.00% 63.00%
59.00% 59.00%
57.00%55.00%
53.00% 52.00% 54.00%
49.00% 49.00% 47.00%
44.00%
44.00% 46.00%
41.00% 41.00% 43.00%
40.00% 38.00%
37.00%
18.00% 19.00%
2019 2018 2017 2016 2015
Figure: Operating Profit Margin
From this we can say that in 2019 Al-ArafahIslami bank is more profitable than IBBL, SIBL,
SJIB and FEIBL because after paying the interest and tax the profit ratio of Al-ArafahIslami is
71%. In this graph respectively Al-ArafahIslami Bank is also in highest position by operating
profit margin in the year 2019, 2018.
5.12 Net profit margin
Net profit margin is the percentage of revenue remaining after all operating expenses, interest,
taxes and preferred stock dividends have been deducted from a company‟s total revenue.
net income
Net Profit Margin = (percentage)
total revenue
41
Particulars 2019 2018 2017 2016 2015
Chart Title
28%
21% 22% 22%

20% 20%
17%
15%
12% 12% 13%
7% 8% 8%
6% 6% 6%
8%
6%
4% 5% 5% 5% 5% 4%
2019 2018 2017 2016 2015
Figure: Net Profit Margin
In this graph we can see that in 2019, 2018, 2017, 2016 and 2015 the net profit of Islami Bank
Bangladesh Ltd. is respectively 7%, 8%, 6%, 15%, 20%, and Social Islami Bank Ltd. Is
respectively 8%, 12%, 12% 28%, 22% and Shajalal Islamic bank Ltd. Respectively 4%, 5%, 5%
6%, 8% and Al- ArafahIslami Bank Ltd. is respectively 5%, 5%, 6% 6%, 6% and First Security
Islami Bank Ltd. Gross profit margin respectively 21%, 22%,20%, 13%, 17%.
In this graph we can again see that AIBL is less profitable than other banks because net profit
margin indicates a more profitable company that has better control over its costs compared to its
competitors. And in another financial year like 2019, 2018, 2017, 2016 and 20poor position than
another banks.
So, the Al-ArafahIslami Bank Ltd. has better control over its cost than other banks.
42
Chapter-6
SWOT Analysis
43
SWOT ANALYSIS
The acronym for SWOT stands for Strength, Weakness, opportunity, and Threat. The SWOT
analysis comprises of the Organization‟s internal strength and weakness and external
opportunities and threats. SWOT analysis gives an organization an insight of what they can do in
future and how they can compete with their existing competitors. This tool is very important to
identify the current position of organization relative to others, who are playing in the same field
and also used in the strategic analysis of the organization.
6.1 STRENGTHS
 Strong corporate identity

 Strong employee bonding and belongings
 Efficient Performance
 Young enthusiastic workforce
 Empowered Work force
 Accountable Corporate Governance
 Experienced Senior Management
 Compensation Package
 Social Welfare
 Online Banking Services
 Training and Development
 Energetic as well as smart team work.
 Good Management.
 Cooperation with each other.
 Membership with SWIFT.
 Good Banker-Customer relationship.
 Strong Financial Position.
 Online Banking Services.
 Well reputed in the Market.
 Not engaged in unfair business practice
44
 Concentrated market
 Well experienced professionals
 Good Inter-personal relation among the officers & executives
 Every year the Bank appraises their employees.
 Promotion and increment depend upon performance to some extent
 The bank‟s leadership has a clear vision of future
 According to employees answer the Bank have a good payment package
 The employees are satisfied with their work place.
 The bank at present have a well-trained group of employees
 At present the bank have a well-educated group of employees
 The employees have a good understanding among them
 The employees are very cooperative
 Wide Branch Network among the 3rd generation Banks.
 Low infection in loan exposure.
 Wide product line.
6.2 WEAKNESSES
 High charges of L/C

 Discouraging small entrepreneurs
 Absence of strong marketing activities
 Not enough innovative products
 Diversification
 Lack of Proper Motivation
 High Cost for maintaining account
 Every branches of the bank are heavily depends on head office for decision making.
 Lack of experienced employees in junior level management.
 Lack of ATM Booth.
 Traditional Banking.
 Reluctant .to Add Campaign
 Small market shortage
 Social responsibilities issues are neglect
45
 Insufficient number of deposit Scheme
 Present job appraisal system doesn‟t help to improve communication between workers
and executives.
 Lack of skilled manpower.

 Availability of mismanagement practices &Employee Conflict.
6.3 OPPORTUNITIES
 Distinct operating procedures

 Country wide network
 Experienced Manager
 Huge Population
 El Dorado Program
 Bigger Market
 BASEL II
 Using their Good market image
 Premium Service Banking
 Globalize the Business
 Government‟s changing attitude towards Private Sector Development
 Openings to take market share away from rival firms
 Consumer credit gives more opportunities for the bank to expand its market share.
 Relationship management can offer high performance of the banking operation.
 Growth of sales volume.
 Change in political environment.
 Launching more ATM booth.
 In Developing Country Lake Bangladesh banking service would be the only source to get
financing.
 The customer of the bank can diversify their portfolio by introducing new sectors.
 The Banking sector of Bangladesh is growing very fast
 The bank can also start micro credit business for individuals and small business
 Can increase the deposit and credit scheme for the small business
46
6.4 THREATS
 Upcoming Banks/Branches
 Similar products are offered by other banks
 Industrial Downturn
 Financial Crisis
 Political Interference and Government Regulations
 Decreasing banking business area
 Unstable political environment of the country
 Similar type of retail banking products.
 Sometimes the bank changes their pricing policies, in due time customers may not aware
about it.
 Daily basis interest on deposit offered by HSBC and others.
 Entrance of new PCB‟s
 The competitors may come with innovate ideas which is difficult to adapt.
 Many local and foreign aggressive Banks are in the market Competitors have more
deposits
 Different aggressive offers and services of foreign and other local banks
 Daily basis interest on deposit offered by the foreign banks
 Entrance of new private commercial banks.
 Competitors have more attractive deposit schemes
 Govt. imposes high rate of taxes and VAT
 Govt. pressures to reduce interest rate.
 Market share for lowering interest rate.
 Deteriorated export, import and guarantee business due to indecent competition as well as
economic slump.
 Contemporary Banks
 Default Culture

47
Chapter- 7
Findings, Recommendation, conclusion
48
7.1 Findings
 The Gross profit margin, return on asset ratio, operating profit margin of AIBL is
sometimes increased and sometimes decreased. On the other hand return on Equity
decreased rapidly. Return on equity decreased that is a good sign of investors. Another
bank are IBBL , SJIBL,SIBL &FSIBL those gross profit margin, return on asset ratio,
operating profit margin increased but return on equity increased that is a bad sign of
investors. It indicates that economic condition is good for both banks.
 Fixed asset turnover ratio of AIBL, IBBL, SJIBL, and SIBL & FSIBL also decreased
rapidly. It is indicating that the bank used all of its assets little bit less effectively and
total asset ratio increased. It is one kind of major issue of financial analysis of AIBL,
IBBL, & SJIBL.
 Debt to total equity of AIBL, IBBL & SJIBL is in ups & downs. A low debt to total
equity ratio could indicate that AIBL less risk & has a strong finance than IBBL &
SJIBL.
 Current ratio of AIBL is stable. On the other hand current ratio of IBBL is decreased day
by day & SJIBL maintain an increases level. It indicates that firms are low liquid. Current
ratio of SIBL is ups and down day by day & Current ratio of FSIBL is decreased.
 Advertising and promotion are the weak points of AIBL, IBBL & SJIBL. SIBL & FSIBL
does not have any effective marketing activities. Other banks have better marketing
strategy.
 In Islamic Banking system loan is very lengthy process. But it is lengthier in AIBL,
IBBL, SJIBL, SIBL & FSIBL because branch managers do not have the power to give
loan. For every loan, managers have to send proposal to head office. Management does
not want to take any risk.
 AIBL, IBBL, SJIBL, SIBL & FSIBL do not give any personal loan, because it is against
the rules of Islamic Banking system. However, personal loan is very popular in other
banks, because the rate of interest is very high for personal loan.
 AIBL profit earning capacity is not satisfactory.
 Sometime IslamiShariah is not properly followed.
 Insufficient training program for the employees.
 Slower in modernization comparing with its competitors.
49
 The working environment in any branch is not congenial & appropriate. The working
desk provides sound pollution. It looks like a hall room.
 The modern technology is not used in the recruitment and selection process. The
backdated methods are using for selection till today.
 Most of the policies are backdated. Only the authority amends the policy but preserve the
old policy.
 There is no policy build up harmonious relationship among the employees. The
employees cannot protest the injustice of the authority because the pure trade union is
absent there.
 The record keeping system is also backdated, not followed computerized system
properly.
50
Recommendation
51
7.2 Recommendation
 Liquidity management of the Banks should have to be very accurate because it indicate
how much capable of the Bank is to meet its short term obligations. Trend of Social
Islami Bank Ltd. and ShahjalalIslami Bank Ltd should have to be improved because both
banks shows negative Liquidity ratio trend. Banks should give special attention to its
liability management. Current assets and current liabilities items also affect the current
ratio trend. To increase the current ratio trend Bank should have increase their current
asset item at a higher rate than the increase in current liabilities item or reduce their
current liabilities item at a higher rate than the reduce of current asset items.
 The trend of leverage ratios of First Security Islami Bank Ltd is noticeable. The reason
behind the increasing trend of leverage ratios of Islami Bank Banglades Ltd and
ShahjalalIslami Bank Ltd and First Security Islami Bank Ltd. is the higher increasing rate
of liabilities than the increasing rate of assets. Asset liability management should have to
be improved to overcome this negative trend.
 Profitability ratios are affected by increases or decreases of net income .Profitability

ratios of SociaIslami Bank Ltd. is noticeable. The reason behind the sharp decrease of
profit margin ratios of IBBL, SJIBL and FSIBL is higher declining rate of net income.
Bank‟s net income should have to be improved.
 Banks should continuously analyze the factors which affects the market value Ratios. The
factors needs to be properly analyzed are net income; market price, stock holders equity,
dividend policy, use of debt, investment etc.Both stock holder‟s equity and net income
affect the market value of stock. If net income and stockholder‟s equity increases market
value of stock will also increases. Stockholder equity can be increased by retain the
earning amount but at the same time bank should have to give emphasize on their
dividend policy because if some portion of net income are paid as dividend, the investor
will see it in a positive eyes and they will invest which ultimately increase the market
value of stock.
52
Conclusion
53
8.3 Conclusion
This report is a bridge between theoretical knowledge and practical knowledge. Now that I have
completed my project work, I believe the experience I have gathered working in the official
environment will be proven vital for me to go ahead in my professional life. During my report I
have realized how modern science and information technology have been contributing more and
more to the development of operational and management process. To serve customer well,
companies need to be skillful in many are faster development of new business strategies,
shrinking company formalities, reducing procedure times, improving customer service and
increasing and maintaining knowledge for accomplishing all these goals.
From over all discussion of this report I found out that the overall banking of IBBL, SIBL,
SJIBL, AIBL and FSIBL In this report a have included Mechanism of Shariah based banking
system and also discussed about comparison among AIBL, SIBL, FSIBL, SJIBL & IBBL. Also I
included about Riba in holy Al-Quaran and holy Al-Hadith. Al-ArafahIslami bank ltd. and Social
Islami Bank Ltd. and Islami Bank Bangladesh Ltd. and ShahjalalIslami Bank Ltd. and First
Security Islami Bank Ltd. is completely exceptional banking institution of the country, in where
they serve Modern and advance banking along with Shariah Mechanism.
I have collected total conditions & improvement report of the bank from the period since 2013 to
2017 as glace of AIBL, SIBL, SJIBL, AIBL and FSIBL. In where I have included authorized
capital, paid up capital, deposit, investment, asset, liability, total income, total expenditure,
shareholders and employees of the bank.
During the course of my practical orientation I have tried to learn the practical banking activities
to realize it with my theoretical knowledge, which I have greathearted and going to acquire from
various courses of my MBA program.
54
References
55
References
 Athanasoglou, P.P., Delis, M.D. & Staikouras, C., "Determinants of Bank Profitability in
the South Eastern European Region", Journal of Financial Decision Making, 2006, vol.
2, pp. 1-17
 Buzzell, R.D, 2004, “The PIMS Program of Strategy Research: A Retrospective
Appraisal”, Journal of Business Research, 2004, 57 (May), pp.478-83
 Berger, A.N., “The profit - structure relationship in banking: Tests of market power and
efficient-structure hypotheses” Journal of Money, Credit, and Banking 1995, Iss. 27, pp.
404-431
 Bourke, P. 1989. “Concentration and other determinants of bank profitability in Europe,
North America and Australia.” Journal of Banking and Finance 13: 65-79.
 www.ibbl.com.bd
 www.wikipedia.org
 www.sibl.com.bd
 www.fsib.com.bd
Annual Reports:
 Annual Report of IBBL (Year 2015)
 Annual Report of SIBL(Year 2015)

 Annual Report of Shahjalal islami bank Ltd. (Year 2015)

 Annual Report of Shahjalal islami bankLtd. (Year 2016)
 Annual Report of Shahjalal islami bank Ltd.(Year 2018)
56
 Annual Report of Al arafah islami bank Ltd.(Year 2015)

 Annual Report of Al arafah islami bank Ltd. (Year 2016)
 Annual Report of Al arafah islami bankLtd.(Year 2018)
 Annual Report of First security Islami bank Ltd. (Year 2015)

57

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Sonargaon University

Date of Submission: 3rd February, 2021

Date: 3rd February, 2021

Md. Masud Rana

Subject: Submission of the Thesis Report.

I wish him every success.

Md. Masud Rana

3.1 Financial performance analysis

1.2 Objective of the thesis report

1.3 Scope of the thesis report

Primary data are not used in this report

Data Processing and Analysis:

1. The Powerful Spreadsheet Analyzer MS Excel

1.5 Limitations of the Thesis Report

 It was really difficult for me to accumulate confidential financial data.

2.2 The analysis of financial statement represents three major steps:

2.4 Financial Statement

„Financial Statement‟ refers to formal ad original statements prepared by a business concern to

 Profit and loss a/c or income statement

 Information shown in financial statement is not precise since it is based on

2.6 Analysis and Interpretation of Financial Statement:

2.7 Type of Analysis:

3.2 Shahjalal Islami Bank Limited

ShahjalalIslami Bank Limited (SJIBL) commenced its commercial operation in accordance

3.4 Social Islami Bank Limited

Financial ratios can be classified into five groups

The current ratio is the ratio of current assets to current liabilities:

Current assets includes,

The debt ratio is defined as total debt divided by total assets:

The debt-to-equity ratio is total debt divided by total equity:

net income - preferred dividends

market price per share

The dividend yield is calculated as,

dividends per share

The dividend payout is calculated as,

dividends per share

Analysis and Interpretation

The Current Ratio Formula is:

Particulars 2019 2018 2017 2016 2015

2019 2018 2017 2016 2015

Figure: Current Ratio

5.2 Return on asset

Particulars 2019 2018 2017 2016 2015

2019 2018 2017 2016 2015

Figure: Return on Asset

5.3 Return on Equity

ROE is expressed as a percentage and calculated as:

Particulars 2019 2018 2017 2016 2015

2019 2018 2017 2016 2015

5.4 Cash ratio

cash cash equivalent s

Particulars 2019 2018 2017 2016 2015

2019 2018 2017 2016 2015

5.5 Cost income ratio

Particulars 2019 2018 2017 2016 2015

0.75 0.76 0.74 0.75 0.72 0.74 0.75

0.51 0.54 0.53 0.53 0.57 0.54

2019 2018 2017 2016 2015

Figure: Cost Income Ratio

5.6 Debt to Total asset

short term debt long term debt

Particulars 2019 2018 2017 2016 2015

2019 2018 2017 2016 2015