This document provides an overview and objectives of a presentation analyzing the financial performance of Social Islami Bank Limited from 2012-2016. The presentation covers various areas including objectives, methodology, limitations, company overview, ratio analysis of liquidity, activity, debt, profitability, and risk. Ratio analysis is used to evaluate the bank's liquidity, activity levels, debt usage, profitability, and risks over the time period. Trends in ratios are analyzed to determine if the bank's financial condition is improving or deteriorating.
This report presents the outcomes of the study during the Internship- Social Islami Bank Limited. I was assigned to topic “Mudaraba value achievement schemes of Social Islami Bank Limited”. I have worked for three months with different section. During the internship period in the Social Islami Bank Ltd, I was given the duties of different division to perform and to gather some valuable knowledge.
Financial Performance Evaluation of Al-Arafah Islami Bank Limited.Rizwan Khan
The prime objective of this report is to analyze the Evaluation of Investment Performance of Al-Arafah Islami Bank Limited.
To find out the overall investment proposal & apprisal procedures, documentations, geographical allocation of AIBL.
To analysis different types of Investment mode (products) as well as sector wise and geographical allocation of AIBL.
To analyze the recovery performance of AIBL over the year.
This report presents the outcomes of the study during the Internship- Social Islami Bank Limited. I was assigned to topic “Mudaraba value achievement schemes of Social Islami Bank Limited”. I have worked for three months with different section. During the internship period in the Social Islami Bank Ltd, I was given the duties of different division to perform and to gather some valuable knowledge.
Financial Performance Evaluation of Al-Arafah Islami Bank Limited.Rizwan Khan
The prime objective of this report is to analyze the Evaluation of Investment Performance of Al-Arafah Islami Bank Limited.
To find out the overall investment proposal & apprisal procedures, documentations, geographical allocation of AIBL.
To analysis different types of Investment mode (products) as well as sector wise and geographical allocation of AIBL.
To analyze the recovery performance of AIBL over the year.
“Analysis of Financial Performance of Jamuna Bank Limited”.pptfaqrul islam
Presentationon
“ANALYSIS OF FINANCIAL PERFORMANCE OF JAMUNA BANK LTD.’’
AREAS COVERED:
Objectives of the Report
The methodology of the Report
Limitations
Company Overview
Ratio Analysis of Jamuna Bank Ltd
Comparative Analysis
Findings of the Study
Recommendations
OBJECTIVES OF THE REPORT
Broad Objective:
The board objective of this is report to analyze the financial performance of Jamuna Bank Limited.
Specific Objectives:
To analyze the liquidity position of Jamuna Bank Limited.
To analyze the asset utilization performance of Jamuna Bank Ltd.
To assess the debt position of Jamuna Bank Ltd.
To analyze the profitability Jamuna Bank Ltd.
To compare the financial performance of Jamuna Bank Ltd. within the banking industry.
METHODOLOGY
Research Design:
This report is descriptive in nature which revels the financial performance of Jamuna Bank Ltd. It has also been administered by collecting secondary data. The secondary are collected from the annual report of Jamuna Bank Ltd, annual report of Bangladesh Bank, Website & book. The data are collected for the period of 2012 to 2016. The use of primary data is very limited in the report. Some information has been collected from observation & discussion with officers of Jamuna Bank Ltd.
INSTRUMENTS USED FOR ANALYSIS:
The ratio analysis is used to analyze the financial Performance of Jamuna Bank Ltd Ltd. Different types of computer software such as- Microsoft word, Microsoft excel etc. are used for analyzing and reporting purpose of the study. The ratio analysis is conducted in form of trend analysis.
Trend Analysis: Trend analysis is the analysis of firm’s performance over time using ratios. It is really important to analyze trend in ratio as well as their absolute levels. This analysis informs us whether a company’s financial condition improving or degenerating.
Comparative Analysis: Comparative analysis takes several periods of information and compares them from period to period.
LIMITATIONS
One of the major limitations is the shortage of internship period. Since three month is not enough to know everything of a bank, so this report does not contain all the area of Jamuna Bank ltd.
The employees in the Jamuna Bank ltd. are so much busy in their responsible fields they could provide me very little time.
Large scale analysis was not possible due to constraints & restrictions posted by the banking authority.
Limitation of personal knowledge is another one. Some knowledge has known no bound, so this report is incapable to represent all things with more depth.
Every organization has report did not disclose much information for the sake of organization confidentiality.
I carried out such a study for the first time so inexperience is one of the main constraints of study.
COMPANY OVERVIEW:
Financial performance analysis of Al-Arafah Islami Bank Limited pptxAbuMozidJisan
General Objective:
To evaluate the banking performance through ratios of Al-Arafah Islami Bank Limited (AIBL) over the Years.
Specific Objectives:
To give a brief overview of AIBL and its performance.
To find out the performance of AIBL over years using financial ratio analysis.
To construct a SWOT analysis of the bank.
Financial statement analysis is the process of reviewing and analysing a
company's financial statements to make better economic decisions. These statements include
the income statement, balance sheet, statement of cash flows, and a statement of changes in
equity. Financial statement analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an organization.
‘Payment Industry of Bangladesh’, published by South Korean smart card provider Kona, looks at the background of the country’s payment industry, the current payment scenario in Bangladesh and the evolution of payment instruments such as cash, debit and credit cards, money transfers and mobile financial services.
It goes on to explore the deployment of technologies including NFC, host card emulation (HCE), tokenization, mobile payments and EMV. The white paper also identifies some of the key players operating within the country and sets out some of the future trends for the country’s payments industry.
Hello! Find more information about short presentation topics for MBA in 2018-2019. More https://www.mbadissertation.org/presentation-topics-for-mba-students/
General Banking Activities & Financial Performance of Agrani Bank LimitedEmran Hosain
This report has been prepared as a part of the internship program, which is an integral part of the BBA Program .Under this program a student has to take a total of 8 semesters. A student has to take a 3-month internship program to an organization. The report on “A study on General Banking Activities & Financial Performance of Agrani Bank Limited” has been prepare to fulfill an essential requirement .
Presentation on summer internship project of bank priyanka sarraf
A SUMMER INTERNSHIP ON “A Comparative study of Himalayan Bank Ltd. and Everest Bank Ltd., with special reference to customer feedback on product and services offered by Himalayan Bank Limited”
Financial Analysis of Axis Bank Services (MBA Finance)Avinash Labade
If any have Need Project Report please call +919011888598 and i will provide only Word File.
and
Project Cost is Rs 500/- Per Project
Send Me Payment Phone Pay or Google Pay
“Analysis of Financial Performance of Jamuna Bank Limited”.pptfaqrul islam
Presentationon
“ANALYSIS OF FINANCIAL PERFORMANCE OF JAMUNA BANK LTD.’’
AREAS COVERED:
Objectives of the Report
The methodology of the Report
Limitations
Company Overview
Ratio Analysis of Jamuna Bank Ltd
Comparative Analysis
Findings of the Study
Recommendations
OBJECTIVES OF THE REPORT
Broad Objective:
The board objective of this is report to analyze the financial performance of Jamuna Bank Limited.
Specific Objectives:
To analyze the liquidity position of Jamuna Bank Limited.
To analyze the asset utilization performance of Jamuna Bank Ltd.
To assess the debt position of Jamuna Bank Ltd.
To analyze the profitability Jamuna Bank Ltd.
To compare the financial performance of Jamuna Bank Ltd. within the banking industry.
METHODOLOGY
Research Design:
This report is descriptive in nature which revels the financial performance of Jamuna Bank Ltd. It has also been administered by collecting secondary data. The secondary are collected from the annual report of Jamuna Bank Ltd, annual report of Bangladesh Bank, Website & book. The data are collected for the period of 2012 to 2016. The use of primary data is very limited in the report. Some information has been collected from observation & discussion with officers of Jamuna Bank Ltd.
INSTRUMENTS USED FOR ANALYSIS:
The ratio analysis is used to analyze the financial Performance of Jamuna Bank Ltd Ltd. Different types of computer software such as- Microsoft word, Microsoft excel etc. are used for analyzing and reporting purpose of the study. The ratio analysis is conducted in form of trend analysis.
Trend Analysis: Trend analysis is the analysis of firm’s performance over time using ratios. It is really important to analyze trend in ratio as well as their absolute levels. This analysis informs us whether a company’s financial condition improving or degenerating.
Comparative Analysis: Comparative analysis takes several periods of information and compares them from period to period.
LIMITATIONS
One of the major limitations is the shortage of internship period. Since three month is not enough to know everything of a bank, so this report does not contain all the area of Jamuna Bank ltd.
The employees in the Jamuna Bank ltd. are so much busy in their responsible fields they could provide me very little time.
Large scale analysis was not possible due to constraints & restrictions posted by the banking authority.
Limitation of personal knowledge is another one. Some knowledge has known no bound, so this report is incapable to represent all things with more depth.
Every organization has report did not disclose much information for the sake of organization confidentiality.
I carried out such a study for the first time so inexperience is one of the main constraints of study.
COMPANY OVERVIEW:
Financial performance analysis of Al-Arafah Islami Bank Limited pptxAbuMozidJisan
General Objective:
To evaluate the banking performance through ratios of Al-Arafah Islami Bank Limited (AIBL) over the Years.
Specific Objectives:
To give a brief overview of AIBL and its performance.
To find out the performance of AIBL over years using financial ratio analysis.
To construct a SWOT analysis of the bank.
Financial statement analysis is the process of reviewing and analysing a
company's financial statements to make better economic decisions. These statements include
the income statement, balance sheet, statement of cash flows, and a statement of changes in
equity. Financial statement analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an organization.
‘Payment Industry of Bangladesh’, published by South Korean smart card provider Kona, looks at the background of the country’s payment industry, the current payment scenario in Bangladesh and the evolution of payment instruments such as cash, debit and credit cards, money transfers and mobile financial services.
It goes on to explore the deployment of technologies including NFC, host card emulation (HCE), tokenization, mobile payments and EMV. The white paper also identifies some of the key players operating within the country and sets out some of the future trends for the country’s payments industry.
Hello! Find more information about short presentation topics for MBA in 2018-2019. More https://www.mbadissertation.org/presentation-topics-for-mba-students/
General Banking Activities & Financial Performance of Agrani Bank LimitedEmran Hosain
This report has been prepared as a part of the internship program, which is an integral part of the BBA Program .Under this program a student has to take a total of 8 semesters. A student has to take a 3-month internship program to an organization. The report on “A study on General Banking Activities & Financial Performance of Agrani Bank Limited” has been prepare to fulfill an essential requirement .
Presentation on summer internship project of bank priyanka sarraf
A SUMMER INTERNSHIP ON “A Comparative study of Himalayan Bank Ltd. and Everest Bank Ltd., with special reference to customer feedback on product and services offered by Himalayan Bank Limited”
Financial Analysis of Axis Bank Services (MBA Finance)Avinash Labade
If any have Need Project Report please call +919011888598 and i will provide only Word File.
and
Project Cost is Rs 500/- Per Project
Send Me Payment Phone Pay or Google Pay
Working capital is the amount of a company's current assets minus the amount of its current liabilities.
The overall success of the company depends upon its working capital position. So it should be handled properly because it shows the efficiency & financial strength of a company.
FIN 534 – FINANCIAL MANAGEMENTwithDr. charity ezenwa.docxcharlottej5
FIN 534 – FINANCIAL MANAGEMENT
with
Dr. charity ezenwa
WELCOME
1
Chapter 3:
ANALYSIS OF FINANCIAL STATEMENTS
WEEK 2
2
Course Learning Outcome(s)
Analyze financial statements for key ratios, cash flow positions, and taxation effects.
3
Topics
Ratio analysis
DuPont equation
Effects of improving ratios
Limitations of ratio analysis
Qualitative factors
4
Why Financial Statement Analysis?
To facilitate comparison of:
One company over time
One company versus other companies
Uses: How can stakeholders benefit and why?
Lenders to determine creditworthiness
Stockholders to estimate future cash flows and risk
Managers to identify areas of weakness and strength
Financial statement analysis involves (1) comparing a firms; performance with that of the other firms in the same industry; and (2)Evaluating trends in the firm’s financial position over time.
Financial statement analysis is used by managers to identify situations needing attention. Potential lenders use financial statement analysis to determine whether a company is credit worthy, and stockholders use it to help them predict future earnings, dividends, and free cash flow.
5
Ratio Analysis
Used to extract information not obvious from simply examining financial statements.
Provides standardized comparison of firms
Example: Giant owes $10 million in debt while Safeway owes $20 million in debt. Which firm has a stronger financial position?
It is very difficult to answer this question without first determining each company's debt relative to its assets, earnings, and interests. Ratio analysis allows us to standardize these debts so as to easily compare the two forms.
6
The Income Statement Example
20162017ESales$5,834,400 $7,035,600COGS except depr.4,980,000 5,800,000Other expenses720,000 612,960Deprec.116,960 120,000 Tot. op. costs5,816,960 6,532,960 EBIT17,440 502,640Int. expense176,000 80,000 EBT(158,560)422,640Taxes (40%)(63,424)169,056Net income($ 95,136)$ 253,584
7
The Balance Sheet – Assets Example
20162017ECash$ 7,282 $ 14,000S-T invest.20,000 71,632AR632,160 878,000Inventories1,287,360 1,716,480 Total CA1,946,802 2,680,112 Net FA939,790 836,840Total assets$2,886,592 $3,516,952
8
The Balance Sheet – Liabilities & Equity
20162017EAccts. payable$ 324,000 $ 359,800Notes payable720,000 300,000Accruals284,960 380,000 Total CL1,328,960 1,039,800Long-term debt1,000,000 500,000Common stock460,000 1,680,936Ret. earnings97,632 296,216 Total equity557,632 1,977,152Total L&E$2,886,592 $3,516,952
9
Other Data
20162017EStock price$6.00$12.17# of shares100,000 250,000EPS-$0.95$1.01DPS$0.11$0.22Book val. per sh.$5.58$7.91Lease payments$40,000$40,000Tax rate0.40.4
10
What are Liquidity Ratios?
Measures a company’s ability to meet its short-term obligations.
Current Ra.
Financial Analysis of United Commercial Bank Limited(UCBL).Rizwan Khan
United Commercial Bank Limited is one of the traditional banks of Bangladesh. The scope of the study covers the organizational overview and objectives, and Financial analysis of the bank. However, the presentation of the five years at a glance, products and services, total asset position, total liability & shareholder equity and also different analysis & comparison are showed to evaluate the performance of the bank.
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background, management capabilities, and other indicators. The summary indicator derived from the system will be called Internal Credit Risk Rating (ICRR).
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This slide is special for master students (MIBS & MIFB) in UUM. Also useful for readers who are interested in the topic of contemporary Islamic banking.
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MASS MEDIA STUDIES-835-CLASS XI Resource Material.pdf
Evaluation of Financial Performance of SIBL
1.
2. Presented by:
Name: Rakib Hossain
ID: 13142101409
Intake: 33rd
Program: BBA
Department of Accounting
Bangladesh University of Business & Technology (BUBT)
4. AREAS COVERED:
Objectives of the Report
Methodology of the Report
Limitations
Company Overview
Ratio Analysis of Social Islami Bank Limited
Findings of the Study
Recommendations
5. OBJECTIVES OF THE REPORT:
Broad Objective:
The prime objective of the study is to evaluate the financial performance of
Social Islami Bank Limited.
Specific Objectives:
To analyze the Liquidity of SIBL.
To analyze the Activity of SIBL.
To analyze the Debt Ratios of SIBL.
To analyze the Profitability of SIBL.
To analyze the Risk of SIBL.
To analyze the Market Ratios of SIBL.
6. METHODOLOGY:
Research Design:
This report is descriptive in nature which revels the financial performance of
Social Islami Bank Limited. It has also been administered by collecting
secondary data. The secondary are collected from the annual report of Social
Islami Bank Limited , annual report of Bangladesh Bank, Website & book. The
data are collected for the period from 2012 to 2016. The use of primary data is
very limited in the report. Some information has been collected from observation
& discussion with officers of Social Islami Bank Limited .
7. INSTRUMENTS USED FOR ANALYSIS:
The ratio analysis is used to analyze the financial Performance of Social
Islami Bank Limited. Different types of computer software such as-
Microsoft word, Microsoft excel etc. are used for analyzing and reporting
purpose of the study. The ratio analysis is conducted in form of trend
analysis.
Trend Analysis: Trend analysis is the analysis of firm’s performance over
time using ratios. It is really important to analyze trend in ratio as well as
their absolute levels. This analysis informs us whether a company’s financial
condition improving or degenerating.
8. LIMITATIONS:
The organization maintains strict confidentiality about their financial and
other information. They are afraid of any type of information leakage to
their competitors. So there was always difficulty to have appropriate
information from them.
Large scale analysis is not possible due to constraints & restrictions posted
by the banking authority
Duration of the study was too short to have a sound understanding of the
overall banking.
This study completely depended on official records and annual reports.
Lack of sufficient books, papers and journals etc.
In many cases, up to date information may not be available.
9. Name of the company Social Islami Bank Limited
Chairman Major (Retd) Dr. Md. Rezaul Hoque
Managing Director & CEO (cc) Ihsanul Aziz
Date of Inauguration 07/05/1995
Number of Branches 125 (one hundred twenty five)
Number of Employees 2363 (Approximate.)
SWIFT SOIVBDDH
Registered Office
City Center, Level 19, 20, 21 & 22,28,29 90/1 Motijheel C/A,
Dhaka-1000
Authorized Capital Tk. 10,000,000,000
Paid up Capital Tk. 7,382,986,420
Phone PABX +88-09612001122
Fax 88-02-9568098
E-mail info@sibl-bd.com
Website www.siblbd.com
COMPANY OVERVIEW:
12. Table 4.1: Current Ratio (Tk. in million)
4.1.1:CURRENT RATIO:
Year 2012 2013 2014 2015 2016
Current Asset 114,829.11 126,401.39 153,737.47 180,008.65 227,815.30
Current Liabilities 104,676.18 115,309.15 141,594.08 167,053.53 213,621.97
Current Ratio 1.096 1.10 1.09 1.08 1.07
Source: Social Islami Bank Limited , Annual Report 2012-16
The current ratio is one of the most commonly financial ratios measures
the bank’s ability to meet its short term obligations. The higher the current
ratio, the better the liquidity position of the bank.
Current Ratio= Current Asset/ Current Liabilities
13. 1.096
1.1
1.09
1.08
1.07
1.06
1.06
1.07
1.07
1.08
1.08
1.09
1.09
1.10
1.10
1.11
2012 2013 2014 2015 2016
Current Ratio
Graphical Presentation:
Figure 4.1: Current Ratio
Interpretation:
A high current ratio indicates that a company is able to meet its short-term obligations. Increases in the current ratio over
time may indicate a company is "growing into" its capacity (while a decreasing ratio may indicate the opposite).So, its
failing able to meet its short-term obligations.
14. 4.1.2 NET WORKING CAPITAL:
Current assets, commonly called working capital, represent the portion of investment that
circulates from to one form to another in the ordinary conduct of business.
Net Working Capital = Current Asset - Current liabilities
Table 4.2: Net working capital
Year 2012 2013 2014 2015 2016
Current Assets (Tk.) 114,829.11 126,401.39 153,737.47 180,008.65 227,815.30
Current Liabilities
(Tk.)
104,676.18 115,309.15 141,594.08 167,053.53 213,621.97
Net working capital 10152.93 11092.24 12143.39 12955.12 14193.33
(Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
15. Graphical Presentation
10152.93
11092.24
12143.39
12955.12
14193.33
0
2000
4000
6000
8000
10000
12000
14000
16000
2012 2013 2014 2015 2016
Net working capital
Interpretation:
It refers that the bank management was not efficient enough in managing its working capital
position. An increase in net working capital indicates that the business has either increased
current assets or has decreased current liabilities—for example has paid off some short-term
creditors.
Figure 4.1.2: Net working Capital
17. Credit to deposit ratio shows the operating efficiency of a particular Bank in
promoting its investment product by measuring the percentage of the total
deposit disbursed by the bank
Credit to Deposit Ratio = Total Loans & Advances/ Total Deposits
Year 2012 2013 2014 2015 2016
Total Loans & Advances 2216.40 9847.36 21977.63 26056.89 39919.28
Total Deposits 93594.29 102104.48 124535.01 149773.62 190564.52
Credit to Deposit Ratio 2.4% 9.6% 17.7% 17.4% 20.95%
Table 4.3: Credit to Deposit Ratio
(Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
4.2.1 Credit to Deposit Ratio
18. Figure 4.3: Credit to Deposit Ratio
2.40%
9.60%
17.70% 17.40%
20.95%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2012 2013 2014 2015 2016
Credit to Deposit Ratio
Graphical Presentation:
Interpretation:
It refers that the bank management was efficient enough in converting its deposit to
credit to generate more profit. A high ratio indicates more reliance on deposits for
lending and likely pressure on resources.
20. 4.3.1 Debt Ratio:
Debt ratio measures the degree of protection of total assets provided by the
firm’s creditors. It is also a measure of risk because debt also consists of a
fixed commitment in the form of interest and principal repayments.
Debt Ratio = Total Liabilities / Total Assets
Table 4.4: Debt Ratio
Year 2012 2013 2014 2015 2016
Total Liabilities 104,676.17 115,309.14 141,412.32 167,053.52 213621.97
Total Assets 115165.95 126616.56 1537374.67 180112.11 227704.18
Debt Ratio (%) 90.9% 91.1% 92.0% 92.7% 93.83%
(Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
21. Graphical Presentation:
90.90% 91.10%
92.00%
92.70%
93.83%
89.00%
90.00%
91.00%
92.00%
93.00%
94.00%
95.00%
2012 2013 2014 2015 2016
Debt Ratio
Figure 4.3.1: Debt Ratio
Interpretation:
It means that a larger protion of total asset was financed by the bank’s creditors fund.a higher
percentage means that a company is using more leverage and has a weak equity position.A
higher percentage means that a company is using more leverage and has a weak equity position.
22. 4.3.2 DEBT TO EQUITY RATIO :
This ratio assesses the firm’s capital structure. It provides a major of risk to
creditors by considering the invested by creditors (debt) & investor (equity).
The higher percentage of debt is grater the degree of risk to any creditor.
Debt to Equity Ratio = Total Liability/ Shareholders Equity
Year 2012 2013 2014 2015 2016
Total Liability 104,676.17 115,309.14 141,412.32 167,053.52 213621.97
Shareholders’ Equity 10181.97 11087.44 12149.38 12955.11 14193.33
Debt to Equity Ratio (Times) 10.28% 10.40% 11.64% 12.90% 15.05%
Table 4.5: Debt to Equity Ratio (Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
23. Graphical Presentation:
Figure 4.5: Debt To Equity Ratio
10.28% 10.40% 11.64%
12.90%
15.05%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
2012 2013 2014 2015 2016
Debt to Equity Ratio
Interpretation
It indicates that SIBL Bank using too much debt to finance is assets relative to shareholder’s
equity fund.A higher debt-to-equity ratio typically shows that a company has been aggressive
in financing its growth with debt, and there may be a greater potential for financial distress if
earnings do not exceed the cost of borrowed funds.
24. 4.4: PROFITABILITY RATIOS
4.4.1 Return on Asset (ROA)
4.4.2 Return on Equity (ROE)
4.4.3 Net Profit Margin
4.4.4 Cost Income Ratio
4.4.5 Earnings per Share (EPS)
25. 4.4.1 Return on Asset (ROA):
Return on asset measures the overall effectiveness of management in generating
profits with its available assets also called the return on investment the higher ratio is
better.
Return on Asset (ROA) = Earnings Available For Common Stockholder / Total Assets
Year 2012 2013 2014 2015 2016
Net Profit After Taxes 2747.89 2024.66 3307.52 3479.17 4192.19
Total Assets 115165.95 126616.56 153737.47 180112.11 227704.18
Return on asset (ROA) 2.75% 1.67% 2.36% 2.08 % 2.06%
Table 4.6: Return on Assets (ROA) (Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
26. Graphical Presentation:
Figure 4.6 : Return On Assets (ROA)
2.75%
1.67%
2.36%
2.08% 2.06%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
2012 2013 2014 2015 2016
Return On Assets
Interpretation:
This indicates a good sign of the bank performance and refers that management was effective
in generating profit by using its available assets. When ROA is negative, it indicates that the
company trended toward having more invested capital or earning lower profits.
27. 4.4.3 RETURN ON EQUITY (ROE):
The return on equity measures the return earn on the owners (both preferred
and common stockholders) investment. Generally, the higher this return, the
better of the owners.
Return on Equity (ROE) = Net Income / Stockholders Equity.
Year 2012 2013 2014 2015 2016
Net profits after taxes 1441.83 1220.20 1903.72 2072.59 2292.19
Shareholder’s equity 10181.97 11083.43 12143.38 12950.32 14187.80
Return on Equity 14.15% 11.01% 15.68% 16.00 % 16.16%
Table 4.7: Return on Equity (ROE) (Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
28. Graphical Presentation:
Figure 4.7: Return on Equity (ROE)
14.15%
11.01%
15.68% 16.00% 16.16%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
2012 2013 2014 2015 2016
Return on Equity
Interpretation:
This indicates a good sign of the bank performance and refers that management was
effective in generating profit by using its shareholders equity capital. A rising ROE
suggests that a company is increasing its ability to generate profit without needing as
much capital. It also indicates how well a company's management is deploying the
shareholders' capital.
29. 4.4.1 NET PROFIT MARGIN:
The net profit margin measures the percentage of each sales dollar remaining after all
expenses, including taxes, have deducted. The higher the net profit margin is better.
The net profit margin is calculated as follows:
Net profit margin = Net Profit after Taxes / Operating Income
Year 2012 2013 2014 2015 2016
Net Profit After Taxes 1441.83 1220.20 1903.72 2072.59 2292.19
Operating Income 5515.09 4146.25 15,718.08 17,305.68 19,174.34
Net Profit Margin 26.14% 29.43% 12.11% 11.98% 11.95%
Table 4.8: Net Profit Margin (Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
30. Graphical Presentation:
26.14% 29.43%
12.11%
11.98% 11.95%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
2012 2013 2014 2015 2016
Net Profit Margin
Figure 4.8: Net Profit Margin
Interpretation:
The profitability position of the bank was good enough for over the year of analysis. A
lower net profit margin means that a company is less efficient at converting sales into
actual profit.
31. 4.4.4 Cost to Income Ratio:
Cost income ratio is the ratio between operating expenses and operating
income it is measure of how cost are changing compared to income. It is one
of main key performance indicators of bank efficiency.
Cost income ratio = Operating Cost / Operating Income
Year 2012 2013 2014 2015 2016
Total Operating
Expenses
1897.27 2578.06 11753.80 12455.80 13476.26
Total Operating
Income
5515.09 5502.61 15718.08 17305.68 19174.34
Cost to Income Ratio 34.40% 46.85% 74.78% 71.98% 70.28%
Table 4.9: Operating cost income ratio (Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
32. Graphical Presentation:
34.40%
46.85%
75.78%
71.98% 70.28%
34.40%
46.85%
75.78%
71.98% 70.28%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2012 2013 2014 2015 2016
Operating Cost Income Ratio
Figure 4.9: Operating Cost Income Ratio
Interpretation:
This indicates that the profitability position of the bank decreased and the management was
failed to reduce its cost relative to its income.
34. 4.5.1: Capital to Risk Weighted Assets Ratio
Capital to Risk Weighted Assets Ratio = Tier 1 Capital + Tier 2
Capital / Risk-Weighted Asset
Year 2012 2013 2014 2015 2016
Total Capital (Tier I + Tier
II)
10596.51 11623.52 13078.26 16916.08 19195.04
Total Risk-Weighted Assets 91983.42 99834.16 115119.51 137155.24 166172.67
Capital to Risk Weighted
Asset Ratio
11.52% 11.58% 11.36% 12.33% 11.55%
Table 4.10: Capital to Risk Weighted Assets Ratio (Tk. in million)
Source: Social Islami Bank Limited , Annual Report 2012-16
37. 4.6.1 EARNINGS PER SHARE (EPS):
Year 2012 2013 2014 2015 2016
Price Earnings Ratio (P/E)
15.88 15.78 17.27 18.42 19.22
Table 4.12: Price Earnings Ratio (P/E) (Amount in Tk.)
Source: Social Islami Bank Limited , Annual Report 2012-16
Calculated as:
Price Earnings Ratio= Market Value Price Per Share/ Earnings Per Share
38. Graphical Presentation:
2.05
1.75
2.71 2.81
3.1
0
0.5
1
1.5
2
2.5
3
3.5
2012 2013 2014 2015 2016
Earnings Per Share (EPS)
Figure 4.11: Earnings per Share
Interpretation:
It may create a positive impact on the future investor of SIBL. A higher PE as mentioned by
older god just means that the market believes that this company will do well in future.
39. 4.5.1 PRICE EARNINGS RATIO (P/E):
Calculated as:
Price Earnings Ratio= Market Value Price Per Share/ Earnings Per Share
Year 2012 2013 2014 2015 2016
Price Earnings Ratio
(P/E) 15.88 15.78 17.27 18.42 19.22
Table 4.12: Price Earnings Ratio (P/E) (Amount in Tk.)
Source: Social Islami Bank Limited , Annual Report 2012-16
40. Figure 4.12: Price Earnings Ratio (P/E)
15.88 15.75
17.27
18.42 19.22
0
5
10
15
20
25
2012 2012 2012 2012 2012
Price Earnings Ratio (P/E)
Interpretation:
It may create a positive impact on the future investor of SIBL.A higher PE as mentioned by
older god just means that the market believes that this company will do well in future.
42. FINDINGS AND OBSERVATION:
In case of Liquidity of SIBL’s net working capital shows that SIBL is able to meet up their obligations.
SIBL’s current ratio fluctuating from 2012 to 2016. However in 2016 the amount of current ratio was
decreased. These indicate that SIBL has improved its capacity to pay off its short term obligation.
After analyzing the Activity ratio of SIBL. It has been seen that there is an upward trend in SIBL’s Total
Asset Turnover and Investment to Deposit Ratio. From 2012 to 2016, the bank was unable to reduce its cost
significantly. Therefore it can be said that the operating activity of SIBL’s is becoming bad.
The Debt ratio and Debt to equity ratio of SIBL increased from2012 to 2016, which indicates that the
Solvency of SIBL is improving.
It has been seen that SIBL’s profitability is declining year by year over 2012 to 2016.
Risk Measurement Ratio it has been found that SIBL is quite successful in reducing its risk through
increasing the capital.
While analyzing the Investor Ratio of SIBL it found that the earning per share, Price earnings ratio of 2012
to 2016 increased consistently.
43. RECOMMENDATIONS:
Social Islami Bank Limited should increase its liquidity position by using long-term financing
rather than cash on hand to acquire inventory or selling unnecessary assets. The management
should also try to improve the working capital position of the Bank by properly forecasting the
cash flows.
Although SIBL profitability ratios are in increasing trend in recent years, they should try more for
increasing their operating efficiency.
The bank should try to increase its profitability ratios to maintain the current performance
comparing to industry average.
The debt ratio was decreased year by year. The Debt ratio measures, the proportion of total asset s
provides by the firms creditors. Their debt ratio was decreasing trend indicates the negative sign
so SIBL should be about it.