Performance of Brac Bank Ltd.

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Chapter 5: Performance Evaluation
To evaluate the performance of BRAC bank Limited the following parameters are considered in the next part of the paper. 1. Asset
2. Deposit
3. Investment
4. Operating Profit
5. Capital Adequacy
6. Loans & Advance
7. Non-funded Income
8. Revenue per Employee
9. Operating Cost per Employee
10. Cost to Income Ratio
11. Operating Cost as a Percentage of Loans and Advances
12. Fund Management
13. Earning Per Share (EPS)
14. Return on Asset (ROA)
15. Return on Investment (ROI)
16. Market Price per Share
The overall performance of BRAC Bank Ltd. is appraised in the following section by appraising its performance in the similar fields. 5.1. Asset
Asset holding of BRAC Bank Limited has gone up substantially in the recent years especially from 2006 to 2007. Among its assets the loans and advances has been increased a lot which was 19,557 million taka in 2006 and 32,461 million taka in 2007. Total asset situation of the bank in last few years is given below. |Year |Total Asset |% Change | |2003 |4,542 | | |2004 |10,016 |120.52% | |2005 |16,876 |68.49% | |2006 |30,012 |77.84% | |2007 |46,383 |54.55% |

From the graph above we observe the asset value of the bank is growing sharply but this is increasing at a decreasing rate. 5.2. Deposit
In BRAC Bank customer deposit is also growing years to years. The following table defends this statement. |Year |Taka (million) |% Change | |2003 |3,497 | | |2004 |8,169 |133.60% | |2005 |13,409 |64.14% | |2006 |23,002 |71.54% | |2007 |37,368 |62.46% |

Deposit mix of the bank stands at the followings:
Currently the Bank’s deposits, mostly comprises of fixed deposits. Since, almost 84% of total deposits are in the form of fixed and savings while only 15% are in the form of current deposits. 5.3. Investment

The Bank’s investment, during the year 2007, were made mostly in government securities which stood at Tk.4,997 million as on December 31, 2007 as against Tk. 3,768 million in 2006. Out of total investment 94.18% concentrated in Govt. Treasury Bills and bonds. 5.4. Operating Profit

BRAC Bank Limited is also performing excellent in terms of their operating profit generation. In 2006 the operating profit was 1,050.41 million taka and by increment of 85.21% the operating income reached to 1,945.50 million taka. |year |Operating Income |Operating Expenses |Operating Profit |% Change | |2003 |233.30 |176.74 |56.56 | | |2004 |679.45 |358.62 |320.83 |467.24% | |2005 |1,173.32 |593.00 |580.32 |80.88% | |2006 |2,077.43 |1,027.02 |1,050.41 |81.01% | |2007 |3,546.25 |1,600.75 |1,945.50 |85.21% |

So from the above diagram we observe that the operating profit of BRAC Bank Limited is increasing years to years. 5.5. Capital Adequacy
Brac Bank attained contentedly adequate capital of 12.28% compared to the current regulatory requirement of 10% |Capital Composition |2003 |2004 |2005 |2006 |2007...
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