This document provides an analysis of the financial performance of BRAC Bank Ltd over several years based on ratio analysis. Key findings from the ratio analysis include: - BRAC Bank maintained a current ratio over 1.1x from 2010-2013 indicating adequate liquidity. - The cost income ratio was around 0.5x, showing moderate operating efficiency. - Total asset turnover declined from 2010-2012 but increased in 2013, demonstrating fluctuating asset utilization efficiency. - Recommendations are made to improve liquidity ratios, loan to deposit ratios, and asset turnover ratios to boost financial performance. - In conclusion, while BRAC Bank faced some challenges in recent years, its overall performance is better than average and it

1. Topic
An Analysis of Financial Performance

2. Supervised By:
Sk. Habibur Rahaman
Senior Lecturer
Manarat International University
Prepared By:
Al Sukran- 1413MBA50346
Manarat International University

3. Introduction

4. Background of the Study
• This is a report on my internship at BRAC BANK LTD
this report details my experiences at the company.
• The internship and this report are part of my MBA
requirements for the ACCOUNTING at major at
Manarat International University. As an accounting
student I have to work with accounting related topic.
I discuss about An Analysis of Financial Performance
of BRAC Bank Ltd. So I analysis some data base on
different ratio analysis.

5. Objective of the Study
This report is designed to know more about the
Financial Ratio Analysis of BRAC BANK LTD. and
analyze the ratio of this organization and identify the
financial condition of this organization. In addition,
the study seeks to achieve the following objectives:
• To analysis the Financial Statement of Brac Bank Ltd.
• To calculate the financial ratios and identify the areas
of concern.
• To identify and assess the present Financial Ratio
Analysis of Brac Bank Limited.

6. Methodology of the Study
This report is prepared by two sources
• Primary Sources: Basically this type of Sources included working
at bank and interviews with others the bankers of BRAC BANK
LTD.
• Secondary Sources: Secondary data were collected in the
following ways:
– Data gathered within the organization itself.
– Data gathered from Texts
– Internet sources.
– General reports
– Annual reports
– Official documents

7. Limitation of the Study
However the some of the limitations I have face
while preparing this Report are listed as
follows:
–Time Limitation
–Inadequate Data
–Lack of Record
–Lack of experiences

8. Overview of BRAC Bank Ltd
BRAC Bank was founded on 4 July 2001 as a private commercial bank
focused on Small and Medium Enterprises (SME). BRAC Bank was
founded to reach the large number of unbanked people which were
not covered by traditional bank. The main concept of the bank was
to facilitate Small and Medium Enterprises (SME). Since then the
Bank has become a leading bank in Bangladesh.
Financial Services - SME Banking, Retails Banking, Card Service (Credit
& Debit), Foreign Exchange & Related Services, Wholesale Banking &
Custodial Service, Probashi Banking
Distribution Network - Branch : 166 (Dec, 2014),
SME Unit Office : 458, Remittance Delivery Point : 1800 ,
ATM Booth : 350+, Apon Somoy (Financial Kiosk) : 16

9. Analysis and Findings

10. Analysis
Ratios allow us to compare companies across
industries, big and small, to identify their strengths
and weaknesses. Financial ratios are often divided
into four main categories:
• Analyzing Liquidity Ratio
• Analyzing Activity Ratio
• Analyzing Debt Ratio
• Analyzing Profitability

11. Ratio Analysis of Brac Bank Ltd

12. Current Ratio
Figure: Current Ratio
Year 2010 2011 2012 2013
Current Asset 108,791,342,196 120,691,016,472 157,898,600,871 157,010,788,637
Current Liability 95,407,908,332 107,837,411,843 144,202,510,136 139,510,917,707
Current Ratio 1.14 1.12 1.09 1.13
1.14
1.12
1.09
1.13
Current Ratio=Current Asset/Current Liabilities

13. Operating Cash Flow Ratio
Figure: Operating Cash Flow
Year 2010 2011 2012 2013
Operating Cash
Flow (1,439,205,626) 933,830,374 19,855,243,700 (5,679,858,459)
Current Liability 95,407,908,332 107,837,411,843 144,202,510,136 139,510,917,707
Operating Cash
Flow Ratio -0.02 0.01 0.14 -0.04
Operating Cash Flow Ratio=Operating Cash Flow/Total Debt
-0.02
0.01
0.14
-0.04

14. Cash Income Ratio
Figure: Cost Income Ratio
Year 2010 2011 2012 2013
Total Operating
Income 9,527,527,784 10,134,733,422 10,894,801,767 12,460,835,400
Total Operating
Expenses 4,751,309,242 5,164,822,269 5,749,605,759 6,535,958,634
Cost Income
Ratio 0.50 0.51 0.53 0.52
Cost Income Ratio = Total operating Expenses/Total Operating Income
0.50
0.51
0.53
0.52

15. Total Asset Turnover
Figure: Total Asset Turnover
Year 2010 2011 2012 2013
Total Operating
Income 9,527,527,784 10,134,733,422 10,894,801,767 12,460,835,400
Total Asset 117,297,555,748 133,201,048,438 173,676,792,029 171,901,669,638
Total Asset
Turnover Ratio 0.08 0.08 0.06 0.07
Total Asset Turnover= Operating Income/Total Asset
0.08 0.08
0.06
0.07

16. Investment to Deposit Ratio
Figure: Investment to Deposit Ratio
Year 2010 2011 2012 2013
Total Investment 12,855,985,261 14,198,827,511 25,372,525,282 21,298,625,661
Total Deposit 88,157,908,331 103,725,529,225 134,646,448,482 124,746,344,037
Investment to
Deposit Ratio 0.15 0.14 0.19 0.17
Investment to Deposit Ratio = Total investment/Total Deposit
0.08 0.14
0.19
0.17

17. Debt Ratio
Figure: Debt Ratio
Year 2010 2011 2012 2013
Total Liabilities 107,879,663,647 123,598,443,600 163,522,243,477 160,314,216,168
Total Asset 117,297,555,748 133,201,048,438 173,676,792,029 171,901,669,638
Debt ratio 0.92 0.93 0.94 0.93
Debt ratio= Total Liabilities/Total Assets
0.92
0.93
0.94
0.93

18. Time Interest Earned Ratio
Figure: Time Interest Earned Ratio
Year 2010 2011 2012 2013
Earning Before
Interest & Tax 4,956,218,541 5,164,822,269 5,145,196,008 5,924,876,766
Interest 1,984,711,371 2,053,030,038 1,987,929,120 2,900,072,524
Time Interest
Earned Ratio 2.50 2.52 2.59 2.04
Time Interest Earned Ratio =Earnings before interest & Taxes/Interest
2.50 2.52 2.59
2.04

19. Net Profit Margin
Figure: Net Profit Margin
Year 2010 2011 2012 2013
Net Profit after
Tax 1,670,361,526 1,702,381,869 540,381,091 1,246,324,101
Total Operating
Income 9,527,527,784 10,134,733,422 10,894,801,767 12,460,835,400
Net Profit Margin 0.18 0.17 0.05 0.10
Net Profit Margin=Net profit after tax/operating income
0.18 0.17
0.05
0.10
0
0.05
0.1
0.15
0.2
2010 2011 2012 2013
NetProfit Margin
0.18 0.17
0.05
0.10

20. Return On Asset
Figure: Return On Asset
Year 2010 2011 2012 2013
Return on Asset
(ROA) 1.55% 1.36% 0.35% 0.72%
Return on Asset (ROA) =Net Profit after tax/Total Asset
1.55%
1.36%
0.35%
0.72%

21. Return On Asset
Figure: Return On Equity
Year 2010 2011 2012 2013
Return on Equity 18.95% 17.90% 5.47% 11.46%
Return on Equity=Net Profit after Tax/ Shareholders equity
18.95% 17.90%
5.47%
11.46%

22. Earnings Per Share
Figure: Earnings Per Share
Year 2010 2011 2012 2013
Earnings per
Share 5.68 5.54 1.52 3.20
Earnings per Share =Earnings available for common stock holder /
No of shares of common stock
5.68 5.54
1.52
3.20

23. Cost of Fund
Figure: Cost of Fund
Year 2010 2011 2012 2013
Cost of Fund 8.54% 8.66% 8.43% 8.13%
8.54%
8.66%
8.43%
8.13%

24. Credit Deposit Ratio
Figure: Credit Deposit Ratio
Year 2010 2011 2012 2013
Credit Deposit
Ratio 95.63% 84.82% 76.96% 82.30%
95.63%
84.82% 76.96% 82.30%

25. Return on Investment
Figure: Return on Investment
Year 2010 2011 2012 2013
Return on
Investment 9.00% 12.41% 3.44% 6.05%
9.00%
12.41%
3.44%
6.05%

26. Net Asset Value Per Share
Figure: Net Asset Value Per Share
Year 2010 2011 2012 2013
Net Asset Value
Per Share 33.29 28.80 26.34 26.14
0
10
20
30
40
2010 2011 2012 2013
Net AssetValue Per Share
33.29
28.80 26.34 26.14

27. Findings
• In the analysis it has seen that in 2010 BBL’s current ratio was highest and
2012 it was lowest among the years. It has seen that BBL maintains current
ratio more than 1:1 ratios. It indicates that BBL’s liquidity position is not
bad.
• In 2010 BBL’s Cost Income Ratio was lowest it indicates positive sign. We
know that the lowest the ratio, the higher the operating efficiency. But
company maintains an average around .50 per year.
• The greater the total asset turnover; it considered more efficiency. From
the analysis it has seen that in year 2010 to 2012 total asset turnover ratio
of BBL decreasing but at 2013 it’s higher than previous which indicate
better efficiency of BBL.
• BBL’s investment to deposit ratio is decreasing in years 2010 to 2011 which
conveys negative signal for the bank. But in 2012 it’s again increasing.
Company maintains an average Investment to deposit ratio around 0.16.
• From the analysis it has seen that BBL’s debt ratios were satisfactory range
in compare to other banks and also it was decreasing trend.

28. Findings
• In the year 2010 to 2012 BBL’s net profit margin decreasing year by year
which indicate that the bank’s operating result were not improving. But in
2013 it improved better than previous year.
• From the analysis it has seen that BBL’s Returns on Asset were gradually
decreasing and in 2010 to 2012. But it’s improved from 2012 to 2013.
• From the analysis return on equity of BBL’s was around 18% in 2010 and
2011. In 2012 because of recession and bad market position Return on
Equity reduced unbelievably at 5.47%. But in 2013 BBL’s able to increase
their ROE at 11.46%.
• From the analysis we found that earnings per share is 5.50 in 2010 & 2011
But in 2012 EPS was decrease at 1.52 and in 2013 again BBL’s EPS remain
increase.
• From analysis Net Asset Value Per Share of BBL’s was 33.29 in 2010. But it is
decreasing year by year. But it maintains an average 26.00 last two years

29. Recommendations
• It is seen in the study that the liquidity ratio of B.B.L during 2012 & 2013.
The liquidity of the bank should be reds by improving current & quick ratio.
But company should maintain this properly and has to improve.
• It is further seen that the loan to deposit ratio of the bank was lower
during 2012 & 2013. Therefore the loan to deposit ratio must be improve
by increasing need loan.
• Assets utilization ratio was also lower in 2011 & 2012. In case B.B.L. This
ratio should also be increased by increasing operating income.
• Finally, at the end of the year we can see that although there have some
difficulties but we can overcome those difficulties by removing all the
weaknesses to develop the product effectively and grab more opportunity
hidden in the banking industry and the bank should also increase the
strength with their solid brand image, experience and skills of the
employees. With their strengths BRAC BANK LTD. can also reduce the
threats existing in the market.

30. Conclusions
• Banking sector is the chief financial intermediaries in a country. It’s also
true for Bangladesh. BRAC BANK LTD is a very challenging institution. In the
age of globalization and free trade, the process and the system of running a
bank is changing. BBL is continuously managing itself with this changing
environment. The days are gone for banks to keep their functions confined
within the periphery of accepting deposit and lending money as well as
making a profit. The company strategies are clear and concise. It was also
found that the bank is doing better in most of the sectors and their
performance is better than average.
• Finally it can be said that the bank is doing very good in the competitive
market and if it can continue to perform this way it can become a leading
banking institution which can play a pivotal role in the development of the
country.

31. Thank You