Comparative financial analysis of selected foreign banks

5,966 views
5,711 views

Published on

Published in: Economy & Finance, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
5,966
On SlideShare
0
From Embeds
0
Number of Embeds
7
Actions
Shares
0
Downloads
225
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Comparative financial analysis of selected foreign banks

  1. 1. Presentation on six – weeks industrial training at Standard Chartered<br />Presented By<br />NavdeepKaurBrar<br />(MBA-2A)<br />
  2. 2. Chapter-I (Introduction)<br />Company Introduction<br />Founded --1853<br />Headquarters -- London<br />Key people -- John Peace (Chairman)<br />Industry -- Banking<br />Products – Financial Services<br />Operating Profit -- $15184 m (2009)<br />Profit before taxation -- $5151 m (2009)<br />Employees -- 77326 (2009)<br />Website -- www.standardchartered.com<br />
  3. 3. WHAT STANDARD CHARTERED STAND FOR??<br />Strategic Intent<br />Brand Promise<br />Value<br />Approach<br /> - Participation<br /> - Competitive Positioning<br /> - Customers<br /> - People<br /> - Communities<br />
  4. 4. Standard chartered banking services<br />Personal Banking<br />Consumer Banking<br />Wholesale Banking<br />SME Banking<br />Private Banking<br />
  5. 5. Organisation chart of standard chartered<br />Chairman of Board<br />( John Peace )<br />Asia <br />JaspalBindra<br />Risk Mgt<br />Rudy Markham<br />Wholesale Banking<br />Mike Rees<br />C FO <br />Richard Medding<br />Peopl<br />Property,<br />Assurance <br />Tim Miller<br />Secretary <br />Anniemarie Durbin)<br />Consumer Banking <br />Steve Bebertamini<br />H R<br /> Tracy Clark<br />
  6. 6. Organisation chart in case of branch<br />
  7. 7. SWOT Analysis<br />1. Strengths:<br />Good and diverse product .<br />Market position is strong .<br />Maintain a strong as a leading cash management provider.<br />2. Weakness:<br />Weak Human Resource Management .<br />Have a fewer location .<br /> <br /> <br />
  8. 8. Contd…<br />3. Opportunities:<br />Scope of opening more Branches .<br />Increasing Banking need.<br />System is so transparent<br /> <br />4. Threat:<br />Competition from major players like HSBC, CITIBANK.<br /> <br />
  9. 9. financial analysis<br /> It is the process of determining financial strength and<br /> weaknesses of the firm by establishing strategic relationship between the items of the balance sheet ,profit and losses account and other operative data.<br />Types of financial analysis<br /> On the basis of material used <br /> On the basis of method of operation<br />
  10. 10. The banks selected for financial analysis are:- <br /> HSBC<br /> Citibank <br /> Royal Bank of Scotland<br /> Standard Chartered<br />
  11. 11. The ranking parameters<br />Growth<br />Size<br />Strength<br /> -Quality of assets <br /> -Productivity and Efficiency<br /> -Quality of earnings<br />
  12. 12. Chapter -2 Research methodology<br />Title of study - <br /> Comparative Financial Analysis of <br /> Standard Chartered with selected <br /> Foreign Banks <br />
  13. 13. CONTD…<br />Objective of study <br />A Comparison between foreign banks on the basis of selected parameters<br />To Calculate important ratios<br /> To Compare selected banks on the basis of these <br /> ratios <br />
  14. 14. Contd…<br />Research Methodology <br />Research Design: – For this study design followed is Descriptiv Research Design <br />Sampling Design <br />Steps in Sample Design<br /> a) Universe-For the study universe is all banks operating in India .<br /> b) Population –For the study population is all foreign banks operating in India .<br />
  15. 15. CONTD…<br />Sample Unit – For the study sample unit is one foreign bank<br />d) Sample Size - For the study sample size is four foreign banks i.e Standard Chartered, HSBC, Citibank and RBS <br />e) Sampling Technique – For the study sampling technique is judgmental sampling .<br />
  16. 16. Data collection<br />Collection of Secondary Data <br />The data have been collected from secondary sources like internet and magazines .The annual reports have been collected from respective sites of banks.<br />
  17. 17. Limitations of study<br /> Only five years data is taken for the study.<br />The data for 2010 is not available for three banks i.e comparison is not possible.<br /> Some more ratios can also be calculated.<br /> The research is only a mean but not an end.<br />Limitation of time.<br />
  18. 18. Chapter-4 DATA ANALYSIS AND INTERPRETATION<br />Chart no-4.1 Growth in deposits<br />
  19. 19. CHART NO-4.2 3-years Cagr of Deposits<br />
  20. 20. Chart no-4.3 growth IN LOANS AND ADVANCES<br />
  21. 21. Chart no -4.4 3-YEAR CAGR OF LOANS AND ADVANCES <br />
  22. 22. CHART NO -4.5 Growth in fee income<br />
  23. 23. Chart no-4.6 3-year cagr of fee income<br />
  24. 24. Chart no -4.7 growth in operating profit<br />
  25. 25. Chart no-4.8 3-year cagr of operating profit<br />
  26. 26. Chart no-4.9 size of deposits<br />
  27. 27. Chart no -4.10 size of operating profit<br />
  28. 28. chart no- 4.11 size of balance sheet<br />
  29. 29. Chart no-4.14 total npa growth ratio (%)<br />
  30. 30. Chart no- 4.15 npa coverage ratio<br />
  31. 31. Chart no-4.16 net npa to net advances<br />
  32. 32. Chart no-4.17 cost to income ratio<br />
  33. 33. Chart no 4.18 cost to avg asset ratio<br />
  34. 34. Chart no-4.19 operating profit per employee<br />
  35. 35. Chart no-4.20 change in return on assets (basis point<br />
  36. 36. Chart no-4.21 increase in operating profit to total income(%)<br />
  37. 37. chart no- 4.22 return on asset(%)<br />
  38. 38. Chart no-4.23 fee income to total income (%)<br />
  39. 39. Chart no-4.24 return on capital employed (%)<br />
  40. 40. Chart no-4.26 capital adequacy ratio<br />
  41. 41. Chart no-4.27 ranking of banks in 2006<br />
  42. 42. Chart no-4.28 Ranking of banks in 2007<br />
  43. 43. Chart no-4.29 ranking of banks n 2008<br />
  44. 44. Chart no-4.30 ranking of banks in 2009<br />
  45. 45. Chapter -5 results and findings<br /> Standard chartered growth in deposits , advances , fee income and operating profit are decreasing in every year.<br /> Citibank and HSBC are growing in term of deposits , advances , fee income and operating profit<br /> Due to increase growth , size of Citibank, HSBC is increasing.<br /> Standard Chartered has good quality of assets as its NPA’s growth rate and total share of NPA’s in total advances are lowest<br />Citibank and HSBC shows high efficiency and productivity.<br />
  46. 46. Contd….<br />Standard Chartered shows highest quality of earning .<br /> Standard Chartered shows lowest capital adequacy ratio as compared with other banks .<br /> Overall Citibank and HSBC performing better than Standard Chartered and RBS.<br />
  47. 47. Suggestions<br />Standard Chartered and RBS needs to improve its growth in terms of deposits, advances, fee income and operating profit.<br /> Citibank and HSBC needs to lower down NPA’s growth rate .<br /> Standard Chartered needs to lower down its cost and improve productivity of labor.<br /> Citibank and RBS needs to improve its quality of earning.<br /> Standard Chartered needs to improve capital adequacy ratio.<br />Overall RBS needs improvements in all parameters.<br />
  48. 48. THANK YOU<br />

×