The document analyzes the financial performance of Dhaka Bank Limited (DBL) over several years using various financial ratios. It finds that DBL's current ratio, return on equity, profit margin, earnings per share, and times interest earned have been improving, showing better management. However, the acid-test ratio, dividend per share, and price-earnings ratio need improvement. Overall, the analysis indicates DBL has generally strengthened its financial position but still has some areas to optimize.

1. Welcome to Our Presentation

4. To analyze performance of DHAKA BANK
LIMITED (DBL) by calculating different financial
ratios, we use following ratios-
1
2
3
4
5
6
7
8
9
10
11

5. Year 2008 2009 2010
Current
49,301,679,829 64,392,429,203 94,299,543,101
assets
Current
42,231,399,329 56,393,251,111 78,312,111,310
Liability
Current Ratio 1.16 1.14 1.20

6. 1.30
1.25
1.20
1.15 1.16
1.20
Current Ratio
1.14
1.10
1.05
2008 2009 2010
By this ratio we see that in 2009 DBL’s Current Ratio is relatively
lower than others. But in 2010 its increasing & also continuous
increasing is going on.

7. Year 2008 2009 2010
Cash+ Short-term
investments
30,201,379,222 40,321,394,323 60,329,361,429
+Receivables
(net)
Current
42,231,399,329 56,393,251,111 78,312,111,310
Liabilities
Acid-Test Ratio 0.71 0.71 0.77

8. 1.10
1.00
0.90 Acid-Test Ratio
0.80 0.71 0.71 0.77
0.70
0.60
2008 2009 2010
DBL’s Acid-Test Ratio in 2008 and 2009 is (0.71) same.
But its overcome in 2010 (0.77). DBL is done well in 2010

9. ROE= (Net Income ÷ Total Equity) × 100
Year 2008 2009 2010
Net Income 675,635,197 769,325,226 1,548,291,201
Total Equity 4,973,256,235 5,235,881,809 8,321,021,252
ROE 13.58% 14.69% 18.60%

10. 30.00
25.00
20.00
18.60% ROE (Return on Equity)
15.00
14.69%
10.00 13.58%
5.00
2008 2009 2010
By this ratio we see that in 2008 & 2009 DBL’s ROE is
relatively lower. But in 2010 its increasing & also continuous
increasing is going on. Therefore, investors will attract more
effectively to invest.

12. ROA= (Net Income ÷ Total Assets) × 100
Year 2008 2009 2010
Net
675,635,197 769,325,226 1,548,291,201
Income
Total
49,301,679,829 64,392,429,203 94,299,543,101
Asset
ROA 1.37% 1.19% 1.64%

13. 5.00%
4.00%
3.00% ROA (Return on Asset)
2.00%
1.37% 1.19% 1.64%
1.00%
0.00%
2008 2009 2010
Here, we see that DBL Managing their asset in average
at 1.4%. And also in 2010, ROA is much better than
others.

14. Profit Margin= (Net Income ÷ Operating Revenue) × 100
Year 2005 2006 2007
Net Income 675,635,197 769,325,226 1,548,291,201
Operating
3,351,543,728 2,921,231,542 4,769,198,333
revenue
Profit Margin 20.15% 26.33% 32.46%

15. 50.00%
40.00%
32.46%
30.00%
26.33% Profit Margin
20.00%20.15%
10.00%
0.00%
2008 2009 2010
DBL’s profit margin ratio in 2008 is 20.15% and 2009 is
26.33.but it is very low. It's overcome in 2010. So, DBL is
doing well in 2010.

17. Net Interest Margin= (Total Interest Income – Total Interest Expense) ÷
Average Earning Asset
Year 2008 2009 2010
Total Interest
5,113,314,145 6,386,259,190 7,453,129,133
Income
Total Interest
3,429,390,652 4,129,723,531 5,592,813,339
Expense
Average
23,953,225,892 32,813,317,501 36,929,413,402
Earning Asset
Net Interest
0.050 0.068 0.070
Margin

18. 0.10%
0.090%
0.080%
Net Interest Margin
0.070% 0.068 0.070
0.060% 0.050
0.050%
2008 2009 2010
DBL’s net interest margin standing in 2010 is
0.070, which is much better from previous
years.

19. EPS= Net Income ÷ No. of Shares Issue
Year 2008 2009 2010
Net Income 675,635,197 769,325,226 1,548,291,201
No. of
13,698,235 14,963,329 20,935,329
Shares Issue
EPS 49.32 51.41 73.95

20. 90.00%
80.00% 73.95
70.00% EPS (Earning Per Share)
60.00%
51.41
50.00%
49.32
40.00%
2008 2009 2010
In 2008 and 2009 it is too much lower. In 2010 DBL
make over the problem for EPS is increasing

22. DPS= Proposed Dividend ÷ No. of Shares Issue
Year 2008 2009 2010
Proposed
370,943,342 410,293,312 551,293,392
Dividend
No. of Shares
13,698,235 14,963,329 20,935,329
Issue
DPS 27.07 27.41 20.46

23. 35.00%
30.00% 27.07
27.41
25.00%
20.46 DPS (Dividend Per Share)
20.00%
15.00%
10.00%
2008 2009 2010
DPS of DBL 2008 & 2009 is good but in 2010 it
is much lower.

24. P/E Ratio = Market Price of per Share ÷ Annual
Earnings per share (EPS)
Year 2008 2009 2010
Market Price of
1050.10 950.50 1532.10
per Share
Annual
Earnings per 49.32 51.41 73.95
Share (EPS)
P/E (Price
21.29 18.48 20.71
Earning) Ratio

25. 35.00%
30.00%
25.00% 21.29 20.71 P/E (Price Earning) Ratio
20.00%
18.48
15.00%
10.00%
2008 2009 2010
EPS of DBL 2008 is good but in 2009 and 2010 it is too much lower.
Somehow external factors are not work properly for that P/E ratio
decreasing.

27. Year 2008 2009 2010
Total debt 2,424,132,102 4,239,731,032 2,248,732,102
Total asset 49,301,679,829 64,392,429,203 94,299,543,101
Debt to total
0.04 0.06 0.02
assets ratio

28. 0.10
0.08
0.06 0.04 0.06 Debt to total assets ratio
0.04
0.02
0.02
0.00
2008 2009 2010
Debts to total asset ratio is doing better when it’s decreasing. Here
we see that in 2008 and 2009 this rate is increase and in 2010 it’s
rate become lower. So, DBL is standing in a low risk position.

30. Year 2008 2009 2010
Income before
1,821,321,922 2,832,392,652 5,632,135,112
income taxes
Interest expense 3,429,390,652 4,129,723,531 5,592,813,339
Time interest
1.53 1.69 2.00
earned

31. 3.50
3.00
2.50 2.00 Times Interest Earned
2.00 1.53
1.69
1.50
1.00
2008 2009 2010
DBL’s Times interest earned standing in 2010 is 2.00,
which is better from previous years

32.  DBL is continually improving its current ratio. It increases at a increasing
rate during last few years.
 Acid test ratio of DBL is not so good in the last few years as It is less
than 1 can not pay their current liabilities and should be looked at with
extreme care.
 DBL’s ROE well day-by-day in managing ROA. Which is a good trend.
 Profit margin rising day by day. Which is good for making future price
policy. shows an increasing trend over the last few years. Which is good.
 DBL is doing
 DPS indicates that the rate of growth of DBL’s earnings are growing.
 DBL is improving in p/e ratio. this would lead most investors to invest in
the company.
 DBL has low debts to total asset ratio. Which is a good side.
 Times interest earned is good and increasing day by day.

34. The evaluating of bank performance is a complex process
involving interactions between the environment, internal
operations, and external activities. The primary method of
evaluating internal performance is by analyzing accounting
statements. Financial ratios of accounting items permit an
historical sketch of bank returns and risks.
At DHAKA BANK LIMITED, they believe that, in order to support
the success of their business customers, they need to take the
time to understand their unique challenges.

35.  Current ratio below 1 shows critical liquidity on the other hand A current ratio higher
than 2.5 might indicate existence of idle or underutilized resources in the company.
So, EBL should try to improve its current ratio carefully.
 Quick ratio of DBL less than 1.00. So ,DBL should give more concentration in their
existing operation.
 DBL should work more to improve its ROE, so that, shareholders attract more to the
company.
 An increasing trend of ROA indicates that the profitability of the company is
improving. So, it is necessary to initiate a new project to increase ROA.
 DBL should improve their pricing strategy. So that they can defeat their competitors
in pricing war.
 DBL’s EPS is growing but which is not as much as 2008. possible action should need
to take to recover this condition.
 Higher P/E ratio attract more investors. So,DBL should look forward to that side.
 Debts to total asset ratio is low,but it will go high if the company don’t utilize the
asset properly.
 If times interest earned ratio less than 1.0, then the firm cannot meet its total
interest expense on its debt. So DBL should work carefully.