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