CITIZEN BANK LIMITED

1. Introduction
Financial performance analysis is the process of analyzing a company’s financial statements for
decision-making purposes and to understand the overall health of an organization. Financial
statements record financial data, which must be evaluated through financial performance
analysis to become more useful to investors, shareholders, managers, and other interested
parties. It is the method of evaluating the past, present, and projected performance of a
company. Analysts track performance measures across financial statements using several
different methods for financial performance analysis, including vertical, horizontal, and ratio
analysis. It helps to analyze whether an entity is stable, solvent, liquid or profitable enough to
warrant a monetary investment.

Citizen Bank Limited is one of the leading commercial Bank in Nepal and has the mission "to be
trustworthy partner for the progress of individual and institutions by designing, producing and
delivering the best financial solution". It is a commercial bank in Nepal, which was established in
2007 B.S. It's headquarter is in the Kathmandu and has a good network of its branches all over
the country.

It provides a wide range of banking services to its costumer including deposits accounts, loans
and advances, remittance services, trade finance, and other value added services. The bank also
offers online banking and mobile banking services to its costumer. Citizen Bank Limited is
committed to providing excellent customer service and has received various awards and
recognitions for its performance and contribution to the banking sector in Nepal. The bank is
regulated by the Nepal Rastra Bank which is the central bank of Nepal. Its shareholding pattern
is 51.29% promoters and 48.71% for general public. It currently operates 117 branches.

2. Scope of the study

Citizen Bank Limited established with the slogan of “your partner for progress”, aims to be a
household name gaining the confidence of its shareholders, investors, depositors, and other
interested parties. For this purpose, analysis of financial performance is a must. The analysis of
financial performance manifests various aspects such as stability, profitability, solvency, and
liquidity position of the organization. Information regarding such aspects of financial statements
not only facilitates the users but also the bank itself helps to identify its strength and weakness.
This will help the bank to formulate plans and policies for better operation in the future.
Therefore, this report will portray the analysis of the financial statement of citizen Bank Limited.
Analysts track performance measures across financial statements using several different
methods for financial performance analysis, including vertical, horizontal, and ratio analysis.
This research focuses on the analysis of financial statements using various tools of ratio analysis.
Statistical and financial ratios such as liquidity ratios, profitability ratios, leverage ratios, activity
ratios as well as other relevant financial ratios will be used as data analysis procedures. This
study shall include the data from FY 74/75 to 77/78.

3. Statement of the problem

A statement of problem is a brief description of an issue to be addressed or a condition to be
improved upon. It aims in identifying and explaining the existing problem.

In present context of Nepal, commercial banks have good performance. On the basis of
profitability and productivity of commercial banks, public have confidence in their performance.
However, various environmental factors, state of economy, structure of capital and money
market, government policies, taxation policies and various internal factors have influence upon
financial performance and position of commercial banks. In these circumstances, it is highly
useful to make the study on financial statement of Citizen Bank Ltd.

Profitability position and stock prices are the general factors that are considered for evaluating
the financial performance of citizen Bank Ltd. However, one can raise a question, “Are these the
only factors to reflect the performance of the bank?”

Thus, the main problem of the study, is to inquire into the financial performance of Everest Bank
Limited. This study is targeted to find out answers to the following questions:

a) What is the financial performance of Citizen Bank Limited?

b) Does the overall financial statement depict the financial position indicating any special
strength and weakness of the Bank?

c) Is Citizen Bank Limited utilizing its assets efficiently?

d) Citizen Bank Limited is considered to be operationally efficient. But how far it is efficient?

In this context, the main purpose of the study is analyzing the financial performance of the
Citizen Bank Limited in terms of turnover, profitability, liquidity and efficiency in operation.
4. Objective of the Study
It defines the purpose of this study. Simply, it helps us to find out the answer of the questions
stated above. The general objective of this study is to analyze the financial statements of Citizen
Bank Limited regarding the financial performance and position.

Other specific objectives are as follows:

a) To evaluate the financial position of Everest Bank Limited.

b) To analyze the financial performances through the use of appropriate financial and analytical
tools.

c) To identify the profitability position i.e. earning per share (EPS), Dividend per share (DPS) and
Return on Asset (ROA).

d) To measure the liquidity, solvency and efficiency.

e) To determine the past, present and projected performance of the company

5. Research Methodology
The research methodology is the process used to collect information and data. The
methodology may include interviews, survey, publication, research and other research
techniques.

5.1 Sources of Data Collection

Data can be collected from primary sources and secondary sources. Primary data are first hand
data collected through direct involvement, whereas secondary source of data are the data
which are already collected by someone else or published by the institution itself and used by
researcher for his/her study. The major data used in this project report are collected through
secondary sources.

5.I Primary Data:

Some of the data are collected from the Citizen Bank Limited. The most sources of data are:

a) Customer record

b) Financial statements

c) Credit reports
d) Market data

e) Economic data

f) Surveys

5.II Secondary Data:

Secondary data are those data that has previously been gathered and can be accessed by
researchers. Data in this project are collected from published as well as unpublished sources.
Secondary data used in this project are listed below:

• Annual financial reports of Everest Bank Limited.

• Official website of Everest Bank Limited.

• News papers

• Books and articles

6. Data Presentation and Analysis

Various statistical as well as financial ratios are used for the analysis of data obtained in the
due course of research. The obtained data is presented, tabulated and graphed to analyze and
achieve the goal of the study. The financial ratios used for data analysis are:

• Profitability ratios

• Liquidity ratios

• Assets management ratio

• And other financial ratios

Further, following tools have been used for data presentation:

• Tabulation

• Bar diagrams

• Pie-chart
7. Chapter Plan
i) Chapter one - Introduction:
It deals with the introductory part. It consists of background of study, banking scenario in
Nepal, profile of the organization, statement of the problem, objective of the study, review of
literature, methods of data collection, limitations of the study and definition of terms.

ii) Chapter two – Result and Analysis:

It deals with the data presentation and analysis of results and finding. It exhibits systematic presentation
of data collected and analysis of result and findings of project work.

iii) Chapter three - Discussion and Conclusion:

Chapter three, last chapter of the study focuses on evaluating and interpreting the results obtained.
Further, it also deals with present implication of results obtained and conclusion drawn useful for future
studies.

8. Limitation of the study

Limitation tends to narrow the area of study. It is caused due various undeniable circumstances.
The major limitations of this study are mentioned below:

• The Research is based on records of 4 fiscal year analysis only i.e. from FY 2075/2076 to FY
2078/2079.

• The researcher has used only some statistical tools for presentation and analysis of data.

• Most of the data used in this study are based on secondary sources mainly official website of
Citizen Bank Limited.

• The main focus is given to the quantitative aspect rather than qualitative aspect.

• The study is based on Citizen Bank Limited only.

• It is only for partial fulfillment of Bachelor of Business Studies (BBS).