Financial Analysis of Dhaka Bank & Southeast Bank
Financial Analysis
Of
Dhaka Bank & Southeast bank
Introduction
The banking sector in Bangladesh comprises of four categories of scheduled banks. These are, nationalized commercial banks (NCBs), government owned development finance institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). As of December 2004, total number of banks operating in Bangladesh remained unchanged at 49. These banks have a total number of 6,303 branches including 10 overseas branches. Structure of the banking sector with breakdown by type of banks.
In 2004, the nationalized commercial banks (NCBs) held 39.6 percent of the total industry assets against 41.7 percent in 2003. Evidently, NCBs' domination in this area is showing a declining trend, while PCBs’ share rose to 43.5percent in 2004 against 40.8 percent in 2003. The foreign commercial banks held 7.2 percent of the industry assets in 2004, showing a little decrease by 0.1 percentage point over the previous year. There has been a decline in the operation of the DFIs with their shares of assets of only 9.7percent in 2004, against 10.2 percent in 2003.
So from this statistics, we saw that our commercial banks are doing very good business in Bangladesh and they are playing a vital role in the society.
Objective
The broad objective of the study is to develop sound practical and theoretical understanding of the evaluation of the performance of Dhaka Bank & Southeast Bank from 2006-2009 and whether they are improving their performance or not. The specific objectives are:
# Understanding the annual reports of Dhaka Bank & Southeast Bank.
# Evaluate the performance analysis of Dhaka Bank & Southeast Bank.
Profitability Ratios
Profitability Ratio: 2006 2007 2008 2009 2006 2007 2008 2009
Return on Asset 1.21% 1.23% 1.28% 1.23% 1.76% 1.90% 2.70% 1.66%
Return on Equity 22.80% 22.50% 21% 19.30% 18% 19.9% 29.3% 16.51%
Net Interest Margin 1.99% 2.8% 2.8% 2.7% 1.9% 2.4%
Of
Dhaka Bank & Southeast bank
Introduction
The banking sector in Bangladesh comprises of four categories of scheduled banks. These are, nationalized commercial banks (NCBs), government owned development finance institutions (DFIs), private commercial banks (PCBs) and foreign commercial banks (FCBs). As of December 2004, total number of banks operating in Bangladesh remained unchanged at 49. These banks have a total number of 6,303 branches including 10 overseas branches. Structure of the banking sector with breakdown by type of banks.
In 2004, the nationalized commercial banks (NCBs) held 39.6 percent of the total industry assets against 41.7 percent in 2003. Evidently, NCBs' domination in this area is showing a declining trend, while PCBs’ share rose to 43.5percent in 2004 against 40.8 percent in 2003. The foreign commercial banks held 7.2 percent of the industry assets in 2004, showing a little decrease by 0.1 percentage point over the previous year. There has been a decline in the operation of the DFIs with their shares of assets of only 9.7percent in 2004, against 10.2 percent in 2003.
So from this statistics, we saw that our commercial banks are doing very good business in Bangladesh and they are playing a vital role in the society.
Objective
The broad objective of the study is to develop sound practical and theoretical understanding of the evaluation of the performance of Dhaka Bank & Southeast Bank from 2006-2009 and whether they are improving their performance or not. The specific objectives are:
# Understanding the annual reports of Dhaka Bank & Southeast Bank.
# Evaluate the performance analysis of Dhaka Bank & Southeast Bank.
Profitability Ratios
Profitability Ratio: 2006 2007 2008 2009 2006 2007 2008 2009
Return on Asset 1.21% 1.23% 1.28% 1.23% 1.76% 1.90% 2.70% 1.66%
Return on Equity 22.80% 22.50% 21% 19.30% 18% 19.9% 29.3% 16.51%
Net Interest Margin 1.99% 2.8% 2.8% 2.7% 1.9% 2.4%