A Comparative Analysis of Performance Evaluation, Liquidity Gap Analysis and Other Issues of Dutch –Bangla Bank Ltd. and Premier Bank Ltd.

Topics: Asset, Generally Accepted Accounting Principles, Liability Pages: 19 (4896 words) Published: June 5, 2012

Najmun Nahar Srity Return on Asset (ROA): ID.No.091-11-924

Figure: Return on Asset (ROA) Interpretation:
ROA (Return on Asset): ROA is a indicator of managerial efficiency, it indicates how capable the management of bank has been converting the institution’s assets into net earnings. In this example, the DBBL earned in year 2010 is 1.989693165 and in 2009 is 1.39102595.The Premier Bank in year 2010 is 2.632 and 2009 is 2.2988, which means the 2010 is than the 2009 by using tk. 100 of assets. Here we see that Premier Bank is higher on ROA, SO Premier bank is better than DBBL.

Return on Equity (ROE):

Figure: Return on Equity (ROE)

ROE (Return on Equity): ROE is measure of rate of return following to this bank’s shareholder. If approximates the net benefit that the stockholder have received from investing their capital in the bank. For this example, DBBL shareholders will get 2010 is 28.63057606 and 2009 is 26.1431769. The Premier Bank shareholders get in 2010 is $28.0636 and 2009 is 23.4650, which mean the 2010 is than the 2009 by using tk. 100 of assets. Here we see that Premier Bank is higher on ROA, So DBBL is better than Premier Bank.

NIM (Net Interest Margin):

Figure: NIM (Net Interest Margin)

NIM (Net Interest Margin): Net interest margin it measures how large a spread between interest revenue and interest expenditure management has been able to achieve by close control over the bank’s earning assets and pursuit of the cheapest sources of funding. In this example, DBBL bank’s earns 2010 is 3.696326711 and 2009 is 2.52704199.The Premier bank’s earns in 2010 is 2.2323 and 2009 is 1.9731.So DBBL is better than Premier Bank.

Net Non Interest Margin (NNIM):

Fig: Net Non Interest Margin Interpretation:
NNIM (Net Non Interest Margin):Net Non Interest Margin measures the amount of non interest revenue stemming from deposit services charges and services fee’s the bank has been to collect relative to the amount of non interest cost incurred. For most of the bank, non interest margin is negative! Non interest margin cost generally outstrip fee income, though bank fee income has been rising rapidly in recently year as a percentage of all bank revenues. In this example, DBBL NNIM is 4.164826303 in 2O1Oand 3.29596859 in 2009. The Premier Bank NNIM is 4.2623 in 2010 and 2.9399 in 2009.

Earnings per share (EPS):

Figure: EPS Interpretation:
EPS (Earning per share): EPS is also a measure of efficiency and profitability. It indicates how much a share will earn from the net profit after tax of a bank. In this example, The DBBL each of this stock earned 2010 is 100.263474 and 2009 is 75.84653713 from net profit after tax. The Premier Bank each of this stock of the bank earned 2010 is 3.61254and 2009 is 2.2370 from net profit after tax. DBBL has paid higher than the Premier Bank.

Asset Utilization (AU):

Fig: Asset Utilization
AU (Asset Utilization): Asset utilization is a measure of asset management efficiency. The banks degree of asset utilization reflects portfolio management policy, specially mix and yield on the bank’s assets. In this example, The DBBL in 2010 AU is .03 times and 2009 AU is 0.03364406 time. The Premier Bank in 2010 AU is 0.0713 times and 2009 AU is 0.0518...
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