Types and Evaluation of asset and liability portfolio of Standard Chartered Bank Bangladesh operation for five years

1. Types and Evaluation of asset and liability
portfolio of Standard Chartered Bank
Bangladesh operation for five years

2. 1
Executive summary
This paper is basically an analysis of the standard Chartered bank’s assets and liability, along
with their asset liability portfolio management. This report also includes brief details of asset and
liability, types of asset and liability the bank have, adding more the evaluation of asset-liability
portfolio with graphs and table for better understanding.

3. 2
Introduction
The Chartered Bank started operating in Bangladesh in 1948, opening a branch in
Chittagong. The branch was opened mainly to facilitate the post-war reestablishment and
expansion of South and Southeast Asia. The Chartered Bank opened another branch in Dhaka in
1966, where it is still headquartered. After the merger of the Chartered Bank with the Standard
Bank in 1969, the Standard Chartered Bank took up a program of expansion. It increasingly
invested in people; technology and premises as its business grew in relation to the country’s
economy.
The International Financial Reporting Standards (IFRS) Framework defines an asset as
follows: “An asset is a resource controlled by the enterprise as a result of past events and from
which future economic benefits are expected to flow to the enterprise.” The assets of a bank are
the outstanding loans of their customers. Additionally, the bank would probably have
investments of its own that would be assets to the bank, as well as the normal assets of property,
fixtures and equipment.
In a time of default on bank loans, the bank takes ownership of the property that was
financed and endeavors to sell this collateral to repay the borrowed amount. Thus, at any given
time there are probably assets of this type on the books.
IFRS framework defines a liability as follows: “A present obligation of the entity arising
from past events, the settlement of which is expected to result in an outflow from the entity of
resources embodying economic benefits.” The liabilities of a bank are the customer checking,
saving or investment account deposits. Additionally, normal liabilities such as the bank’s own
loans payable or other similar obligations would be liabilities, just as they are in any other
business.

4. 3
Type of assets and liabilities of Standard Chartered Bank Bangladesh operations
Assets
1. Cash and Balance with other banks and financial institutions: The cash includes
foreign currencies in the reserve and balance with other institutes.
Cash balance of Standard Chartered Bank has fluctuated over the year. However last two years
cash balances are quite same.
2. Investments: Investments are another source of income and a secondary source of
liquidity. The Standard chartered bank have many type of investment includes
Government securities and Reverse Repo. Government securities includes Treasury Bills
,Bangladesh Bank Bills, Bangladesh Government Treasury Bonds, Bangladesh
Government Islamic Bonds, Prize Bonds.
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 54,809,788,158 34,439,592,998 35,565,297,898 49,985,187,199 49,738,694,034
Amount(BDT)

5. 4
From the data, we can observe that the Investment trend is fluctuating over the years. But
Investment of Standard Chartered Bank is increasing trend.
3. Loans and advances: By far the largest assert items are loans and advances for Standard
Chartered Bank. The Standard Chartered Bank’s loans account is broken down into
several groups of similar type loans. These are Secured cash credits , Personal credit
,Loans against property, Term loans, Revolving loans, Loans against trust receipts, Auto
loans, House building loans, Credit cards ,Overdraft , Staff loans , Islamic - Credit cards
,Islamic - Instalment finance (Murabaha) , Islamic - Auto finance , Islamic - Mortgage
finance , Islamic - Finance against property, Islamic - Finance against trust receipt ,
Islamic - Corporate Short Term Finance , Islamic - Import invoice financing.
Here we can see that in 2014 the Loans and advances was less than the previous year, but after
that it is in increasing trend.
4. Fixed assets: Fixed assets including premises, furniture and fixtures.
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 44,796,078,707 57,957,355,438 56,886,567,463 61,300,730,453 58,915,827,758
0
10,000,000,000
20,000,000,000
30,000,000,000
40,000,000,000
50,000,000,000
60,000,000,000
70,000,000,000
Amount(BDT)
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 119,810,639,0 110,678,067,0 123,000,988,7 131,743,827,6 160,771,327,9
0
20,000,000,000
40,000,000,000
60,000,000,000
80,000,000,000
100,000,000,000
120,000,000,000
140,000,000,000
160,000,000,000
180,000,000,000
Amount(BDT)

6. 5
From the data, we can see that the fixed asset of Standard Chartered Bank’s is decreasing over
the years
Liabilities
1. Borrowings from other banks, financial institutions and agents:
For the above data, it is seen that Borrowings from other banks, financial institutions and
agents is fluctuating over years.
2. Deposits and other accounts: Deposit with other account includes Current accounts, Bills
payable, Savings deposits, Term deposits, Short term deposits etc. Deposits are the main
sources of loanable fund of a bank.
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 1,109,823,01 1,036,790,79 709,547,435 443,273,217 394,133,832
0
200,000,000
400,000,000
600,000,000
800,000,000
1,000,000,000
1,200,000,000
Amount(BDT)
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 10,651,446,658 12,941,306,899 11,637,876,859 13,197,840,855 12,717,443,667
0
2,000,000,000
4,000,000,000
6,000,000,000
8,000,000,000
10,000,000,000
12,000,000,000
14,000,000,000
Amount(BDT)

7. 6
In above data, we can see that in 2014 deposit is little bit lower than previous year. From
2014 deposits are increasing tread, which is good sign for Standard chartered Bank.
3. Equity: Equity capital including Fund deposited with Bangladesh Bank, Profit and loss
account balance and other reserves.
Based on above data, we can observe that the equity is increasing trend. Increasing equity is
good for Stakeholders.
Evaluation of Assets and Liability of Standard Chartered Bank Bangladesh operations
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 169,551,703,192 149,242,480,974 173,000,988,745 181,675,183,660 203,659,648,459
0
50,000,000,000
100,000,000,000
150,000,000,000
200,000,000,000
250,000,000,000
Amount(BDT)
1 2 3 4 5
Financial Year 2013 2014 2015 2016 2017
Amount(BDT) 23,967,300,505 26,703,054,305 28,678,985,456 33,483,373,744 41,088,561,436
0
5,000,000,000
10,000,000,000
15,000,000,000
20,000,000,000
25,000,000,000
30,000,000,000
35,000,000,000
40,000,000,000
45,000,000,000
Amount(BDT)

8. 7
Value of Total Assets (2013-2017).
Year Total assets(tk) Growth
2013 228,858,021,536 0.00%
2014 213,738,409,323 7.69%
2015 238,678,985,456 7.14%
2016 253,108,726,384 6.67%
2017 283,578,315,863 6.25%
It was revealed through documents study that the total asset of the SCB has been increased about
24 per cent from the base year 2013 to year 2017. The graph shows a regular decresing in total
asset growth. However Aa positive growth indicate a fairly good performance of the
organization. The highest growth in 2014 which is 7.69.
Value of total Liabilities (2013-2017).
Year Total liabilities (BDT) Growth
2013 204,890,721,031 0
2014 187,035,355,018 -8.71%
2015 201,067,335,785 7.50%
2016 219,625,352,640 9.23%
2017 242,489,754,426 10.41%

9. 8
Total liabilities of the SCB was 204890 million taka in 2013 its increases every year in 2017 it's
reached 242,489 million. Average growth is around 7%, but in 2014 had been negative growth
and it was -8.78 %. The growth is increasing from 2015 to 2017every year.
Change in assets and liabilities from 2013 to 2017
0
0
0
0
0
0
2013 2014 2015 2016 2017
Growth Rate
Growth Rate
0
50,000,000,000
100,000,000,000
150,000,000,000
200,000,000,000
250,000,000,000
300,000,000,000
2013 2014 2015 2016 2017
Year
Growth of Asset and Liability
Asset Liability

10. 9
Standard chartered Bank has positive gap and this shows that the bank is asset sensitive. The
both assets and liabilities of Standard chartered Bank is increasing trend from 2014 to 2017.
Conclusion
Based on above analysis, I would like to say that the asset liability portfolio is quite in favor of
the Standard chartered Bank. Although being an asset sensitive bank means that they are doing
when to cover up their liabilities.
References
1. Standard Chartered Bank Bangladesh operation. (n.d.). Retrieved April 28, 2019, from
https://www.sc.com/bd/about-us/
2. Conceptual Framework for Financial Reporting. (2018, March). International Financial
Reporting Standards. Retrieved April 28, 2019, from
https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&cad=rja&uact
=8&ved=2ahUKEwjgmN-
giYLiAhUkheYKHRaGBygQFjACegQIBBAC&url=https://www.ifrs.org/-
/media/project/conceptual-framework/fact-sheet-project-summary-and-feedback-
statement/conceptual-framework-project-
summary.pdf&usg=AOvVaw18TJL_kRavAOt7xGmmSqw1
3. Standard Chartered Bank Bangladesh, Annual report 2013, 2014,2015,2016,2017. (n.d.).
Retrieved April 28, 2019, from https://www.sc.com/bd/