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.

1. “Financial Performance Analysis of
Al-Arafah Islami Bank Limited” -
A Study on Al-Arafah Islami Bank Limited
(Chawkbazar Branch)
Presented By
Syed Md. Abu Mozid
Course title: Internship
Course Code: BBA 496
CIU Business School,
Chittagong Independent University
Presented To
Dr. Syed Manzur Quader
Professor and Head, Department of
International Business & MIS
CIU Business School,
Chittagong Independent University

2. Objectives
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.

3. • Three months, time is not enough it is
very difficult to collect all information in
such a short time.
• The employees are always busy and they
could not able to give me enough time
for discussion about.
• As a financial organization, a bank has
some restrictions to serve all the real
data of the bank of the general people
as a result the study mostly depends on
artificial files and annual reports.
• There were some restrictions to have
access to the information confidential
by the authority.
Limitation of the Study

4. Research Methodology
Primary Sources of
Data
• A face-to-face conversation
between the consul and
the Bank's respective
officers.
• The practical experience
gained from working at
various desks throughout
the internship season.
• Al-Arafah Islami Bank Ltd.'s
various circulars.
Secondary Sources
of Data
• A daily journal (containing
my activities of practical
orientation in Al-Arafah
Islami Bank Ltd.)
• Al-Arafah Islami Bank Ltd.
Annual Report, 2019 to
2021.
• Al-Arafah Islami Bank Ltd.'s
website.
• Various bank publications.

5. Company Overview
Name of the company Al-Arafah Islami Bank Limited (AIBL)
Registered office Al-Arafah Tower, 63, Purana Paltan, Dhaka,
Bangladesh.
Legal status Private Limited Company
Incorporation 18 June,1995
Opening of first branch 27 September, 1995
Authorized capital 15,000.00 million
Paid up capital 10,649.02 million
Deposit 326,023.41 million
Investment 308,620.66 million
Foreign exchange business 328,636.51 million
Number of Employees 3,866 (as on 2020)
Total Branch 201

6. Vision & Mission of AIBL
Vision Mission
• To be a pioneer in Islami Banking in
Bangladesh and contribute
significantly to the growth of the
national economy.
• Achieving the satisfaction of
Almighty Allah both here &
hereafter.
• Proliferation of Shariah Based
Banking Practices.
• Quality financial services adopting
the latest technology.
• Fast and efficient customer service.
• Maintaining high standard of
business ethics.
• Steady & competitive return on
shareholders’ equity.
• Innovative banking at a competitive
price.
• Involving more in Micro and SME
financing.

8. Financial Ratio Analysis of Al-Arafah
Islami Bank
Gross Profit Ratio
Year 2021 2020 2019
Gross Profit Ratio = Gross profit
divided/ net Investment x 100
44% 37% 35%
35%
37%
44%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
2019 2020 2021
Return on Assets
Year 2021 2020 2019
Return on Assets = Net
Profit after Taxation
/Total Asset
0.04% 0.06% 0.06%
0.06% 0.06%
0.04%
0.00%
0.01%
0.02%
0.03%
0.04%
0.05%
0.06%
0.07%
2019 2020 2021
Profitability Ratios

9. Financial Ratio Analysis of Al-Arafah
Islami Bank
Return on Equity
Year 2021 2020 2019
Return on Equity = Net
Profit after Taxation /
Equity
8.2% 10.1% 10.1%
10.10% 10.10%
8.20%
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
2019 2020 2021
Operating Profit Margin
Year 2021 2020 2019
Operating profit margin =
Total Operating income /
investment income
16.26% 19.71% 18.48%
18.48%
19.71%
16.26%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2019 2020 2021

10. Financial Ratio Analysis of Al-Arafah
Islami Bank
Total asset turnover
Efficiency Ratios
Year 2021 2020 2019
Total asset turnover
= Investment
income / Total
assets
0.05 times 0.06 times 0.07
times
0.07
0.06
0.05
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
0.08
2019 2020 2021
Fixed asset turnover
Year 2021 2020 2019
Fixed asset turnover
=Investment income/
Fixed assets
4.28
times
4.49
times
6.57
times
6.57
4.49 4.28
0
1
2
3
4
5
6
7
2019 2020 2021

11. Financial Ratio Analysis of Al-Arafah
Islami Bank
Current Ratio
Year 2021 2020 2019
Current ratio = current
assets/current liabilities
0.95 0.94 0.97
0.97
0.94
0.95
0.925
0.93
0.935
0.94
0.945
0.95
0.955
0.96
0.965
0.97
0.975
2019 2020 2021
Debt-Equity Ratio
Year 2021 2020 2019
Debt Equity Ratio= Long-term
Debt / Total Equity
19.54 16.44 14.77
14.77
16.44
0 0
0 0
19.54
0
0 0 0 0
0
5
10
15
20
25
2019 2020 2021
Risk Measurement
Measurement of Solvency

12. Financial Ratio Analysis of Al-Arafah
Islami Bank
Performance at a glance

14. SWOT analysis of AIBL
STRENGHT
• All the level of the management is solely directed
to maintain a culture for the betterment of the
quality of the service.
• The bank has earned customer loyalty as
organizational loyalty.
• Skilled personals have developed professional
relationships with their customers and clients,
which is an emotional tie on regular business.
• AIBL is always trying to add new and modern
equipment's.
• Employees are sharing good atmosphere in AIBL
so that it gave them reason to work efficiently and
to become dedicated in banking.
WEAKNESS
• There are some officers who work hard but are
not appreciated by the authority.
• AIBL has not set up proper network system
among branches.
• A remarkable portion of the total human
resources is inefficient.
• The bank does not have any research and
development division.
• The advertising and promotional activities of this
bank are up to the mark.

15. SWOT analysis of AIBL
OPPORTUNITY
 As it has an online banking service it is
capable of serving quicker.
 Introducing consumer credit scheme.
 They can also offer micro credit business
for individual and small business.
 Introducing branch banking online.
 Develop relations and correspondence
with foreign banks.
 Focus more on corporate social
responsibility to earn long term
goodwill.
THREATS
 An increasing number of Islamic banks
as well as conventional banks.
 Deposit crisis in the recent period
 Different classic services of other banks.
 Entrance of new private commercial
banks.
 The young, energetic, dynamic, talented,
and smart workforce of competitors.
 Local competitors can capture huge
market share by offering similar
products.

16. Conclusion
• Al-Arafah Islamic Bank Limited (AIBL) is conducting their business following Islamic Shariah (law).
Various financial ratio analyses show that AIBL get a better position on the basis of its performance. The
bank should be sincere to collect deposit and lending money and increased the number of financial
products.
• The findings suggest that cost of fund, markup financing, fixing profit margin, Zakat distribution should
be based on Islamic Shariah properly for the betterment of the society. This study also suggests that
AIBL should have to increase investment in the capital market and to increase the number of financial
instruments.
• Credit financing is a modern scientific technique for enhancing Al-Arafah Islami Bank's strength, and
there are opportunities to make it more effective in the future for our benefit, even if the results achieved
so far are not satisfactory.
• Al-Arafah Islami Bank is committed to providing high-quality financial services/products that will help
the country's GDP grow. It is not far off when it will be able to overcome the current constraints, and it
could play a significant role in the development financing portfolio.