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8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks
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a l y s i s b e t w e e n G e n e r a l C o m m e r c i a l B a n k s a n d I s l a m ic
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1
1
Course Title: Project eport
Course Code! B"S#$%
Prepared To
Leo Vashkor Dewri
Lecturer
Department of Business
Administration
East West University
Prepared By
Saifu !sam
!D: "##$%&%1&%#"'
(a)or: Accountin*
Sprin*+1,
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&
1- Apri "#1,
LeoVashkor Dewri
Lecturer.
Department of Business Administration
East West University
Dhaka/
Su0)ect: e*ardin* Su0mission of BUS,$2 3ro)ect eport
Dear Sir:
With *reat peasure ! su0mit this pro)ect that ! have 0een assi*ned as an important re4uirement of
BBA pro*ram at East West University/ ! found the study to 0e 4uite interestin*. 0eneficia and
knowed*e/ ! have tried my eve 0est to prepare an effective 5 credita0e report/
6his pro)ect report is a0out 7A comparative financia anaysis 0etween *enera commercia 0ank
And !samishariah 0ank8/
! aso want to thank you for your support and patience with me and ! appreciate the opportunity
provided 0y East West University to work on this wonderfu pro)ect report/
Sincerey 9ours.
Saifu !sam
!D: "##$%&%1&%#"'
(a)or: Accountin*
Department of Business Administration
East West University
"
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'
Acknowled(ement
Assistance and cooperation of different peope in different sta*es of my pro)ect paper preparation
heped me to add more 0eauties to the report/ 3reparin* this pro)ect a have worked a ot and
went to different paces to coect data/ Without those peope hep it woud not have 0een
possi0e for me to work on this pro)ect/ ! faced many pro0ems when started the work on report
0ut ! am *reaty thankfu to Aah for ena0in* me to *et successfuy throu*h my
responsi0iities/
! woud ike to thank (s/ Leo Vashkor Dewri who is my pro)ect advisor. heped me ot to prepare
this pro)ect. time to time she advised me how to work on it/ Aso my cousin (r/ (ohammad Asif
who worked in Dhaka Stock Echan*e whose assistance priced me hu*e. thanks to that person
too/ 6here are many peope who heped me; it is not possi0e to mention a the names thou*h !
remem0er your hep/
! have prepared this report as an inte*ra part of BBA pro*ram Under the Business
Administration department. East West University/ ! am hi*hy inde0ted to a num0er of person for
their kind advice. su**estions. directions and cooperation that have ena0ed me to prepare this
report/
! am very *ratefu to my teacher for a his kind cooperation and *uideine in preparin* this
paper/
! aso ike to thank the entire departmenta heads and stuff who heped me in various ways/ 6he
mem0ers of the mana*ement of a the 0anks ! worked with were very co%operative and hepfu
to me from top to 0ottom eve/
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#
)*ecutive Summary
6his pro)ect report is 0ased on my anaysis of financia statements of "##2. "##$. "#1#. "#11
and "#1" of 3rime Bank Limited. Brac 0ank Limited. Dutch%Ban*a Bank Limited. !samic
Bank. Shah)aa Bank. and A%Arafah !samic Bank Limited/ ! have done my anaysis mainy
focusin* on the comparative anaysis 0etween these si Banks/ !n this period. ! have chosen three
!samic and three =enera >ommercia Banks to done this performance >omparison/ !t was a
*reat opportunity to know and *ather knowed*e different types of 0ankin* operations/ (y
facuty supervisor heped me to choose the topic% 7Comparative analysis between General
Commercial Banks and Islamic Shariah Banks8/ !n the new competitive 0usiness era. *enera
0ankin* sector is *ettin* more competitive in Ban*adesh/ But it is aso true that. !samic
Bankin* sector has drawn the attention of many in this competitive Bankin* !ndustry/
6his paper focuses on the comprehensive comparison a0out the performance of *enera and
!samic 0ankin* system operation in Ban*adesh/
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+
had to anay?e and *ive si*nificant comments re*ardin* the chan*es in the financia position/
Anaysis and interpretation of these financia statements throu*h ratio anaysis has now 0ecome
an important techni4ue for performance appraisa 0ecause the investors. financia eperts.
mana*ement eecutives and the 0ankers are aways rey on these ratios to make important
decisions/ 6he mana*ement team of any 0ank. investor and the *overnment a*encies aways
concern a0out i4uidity ratios and ade4uacy ratios of a 0ank which interprets the efficiency of a
0ank/
As a part of my B/B/A pro*ram. ! have spent three months 0y anay?in* the activities of these
!samic and 6raditiona Banks/ ! have anay?ed the financia statements of these 0anks to find out
its ratios 0y usin* its past records/ After preparin* this report ! came to know that anaysis of
financia statements throu*h ratios heps to overcome the past faws and make the future
decisions and strate*ies/ 6herefore. it is very necessary for every or*ani?ation whether the
company+s si?e is to make financia statement and to anay?e it 0y ratios/
-
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,
Table of contents
Topic Page no.
Letter of Transmittal I
Acknowledgement Ii
Executive summary iii-iv
Chapter 0
1.1 Introduction 10-11
.! "ackground of the study 11
.# $%&ective of the report 11-12.' (cope of the pro&ect 12
.) Limitation of the study 12
.* +ethodology , data sources 13
.*. -ata analysis 14
.*.! Conceptual framework 15
.*.# Theoretical ramework
16-18
.*.) Population 18
.*.* (ample 18
Chapter 0!
2.1 Literature Review 19-20
Chapter 0#
3.1 Overview of banking system of Bangladesh 21
#.! /mpact of "anking /ndustry in the "angladesh
economy
21-22
#.# Current (tructure of "ank 22-23
#.' /slamic %anking 24
#.) Comparison %etween /slamic %ank and general
%ank
24
@
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-
Chapter 0'
.1 Ratio analysis 25
'.! Prota%ility ratio 26
'.!. 1eturn on sales 26-29
'.!.! 1eturn on asset 21$A3 28-29
'.!.# 4et interest margin 29-31
'.!.' 4et operating margin 30-32
'.!.) Earnings per share2EP(3 32-34
'.# Li5uidity ratios 34
'.#. Current ratio2C13 35-36
'.#.! Current asset ratio2CA13 36-37
'.#.# Loan ratio 38-39
'.' 1isk ratios 39 '.'. Credit risk 39
'.'..Ttotal loans6 total deposits 40-41
'.'.! /nterest rate risk ratio 41
#.'.!. /nterest sensitive asset6 interest
sensitive lia%ilities
41-43
'.'.# Price risk 43
'.'.#. Price earnings ratio 43-45
'.) E5uity ratio 46-47
'.* $ther nancial ratios 47
'.*. 1ate of return on loans 47-49 '.*.! Loan to asset ratio 49-51
'.*.# total de%t to e5uity ratio 51-53
'.*.' -e%t ratio 53-55
Chapter 0)
!1 "ndings of the #ro$ect at a glance 56
).! Performance indicator 57 ).!. Prota%ility 57
).!.! Li5uidity 58
).!.# 1isk 58-59
).!.' Capital Ade5uacy 59
).!.) $thers 59-60
'
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$
List of tables
Ta%le
no.Ta%le name Page no.
0 (teps o& presenting ratio ana"ysis 14
0! !urrent stru%ture o& 'an)ing system in
*ang"a$es
22-23
0# !omparison o& genera" 'an)ing an$ Is"ami%
'an)ing
24
0' Return on equity 260) Return on assets 28
0* Net interest in%ome 29
07 Net operating margin 31
08 Earnings per sare 33
09 !urrent ratio 35
0 !urrent asset ratio 36
"oan ratio 38
! #ota" "oan to tota" $eposit 40
# Interest sensitive 42
' pri%e earnings ratio 44) Equity ratio 46
* Rate o& return on "oans 48
7 "oan to asset ratio 50
8 tota" $e't to equity ratio 52
9 $e't ratio 54
$
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1.
!0 +n$ings o& te pro,e%t at a g"an%e 56
Chapter! .1
1/1 Introduction
Ban*adesh is the country where more than $# peope are (usim 3ew search
ei*ion53u0ic Life 3ro)ect. "#11C/ / aturay. it remains a deep cry in their hearts to fashion
1#
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11
and desi*n their economic ives in accordance with the precepts of !sam/ 6herefore. with a view
to provide !samic 0ankin* services at first !samic Bank Ban*adesh td was esta0ished 1$2&/
Assi*nmentpoint/com. 1$$-C/ ow we have severa !samic Banks those are providin* different
0ankin* services than that of *enera commercia 0ank/ !samic Bankin* has 0een *rowin*
wordwide si*nificanty in the past three decades and is deveopin* remarka0y in the Southeast
Asia. (idde East and even in Europe and in orth America/ Ban*adesh aso has this dua
0ankin* system where !samic shariah Bank and *enera Bank 0anks are operatin* side 0y side/
6he num0er of *enera commercia 0anks are more than the !samic Shariah 0anks. contri0utin*
more in the economy/ 6he 0anks pay an important roe in the economy of the country/ Bankin*
sector in Ban*adesh demonstrated a moderate eve of resiience in S activities and =reen Bankin* initiatives/
(oreover. preparation of revised risk mana*ement *uideines is at fina sta*e/ 6he foowin*
para*raphs hi*hi*ht the recent re*uatory and supervisory measures initiated 0y BB for 0anks.
industry statistics and performance trends of the 0ankin* sector/ 6he contri0ution of 0ankin*
sector to the =D3 of Ban*adesh is very impressive/ !n the
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1&
theoretica knowed*e into the pro)ect work/ 6his pro)ect ena0es a student for deveopin* their
anaytica skis/ At the end of the day it refects what they earned throu*hout the pro*ram/
1/' bjective o0 the project
The primary objective!
6he primary o0)ective of preparin* this report is to compare financia performance anaysis of
=enera >ommercia Bank and !samic Shariah Banks. and to have a cear conception a0out a
of the essentia parts of this pro)ect/
Secondary objective!
6o evauate the 3rofita0iity of these 0anks in a view to compare performance/
>ompare the performance of these 0anks throu*h various financia ratios/
Gverview of these Banks/
6o identify the pro0em facin* 0y them/
At east to reate theoretica knowed*e with practica eperience in severa functions of
these 0anks/
6o show the compara0e areas of =enera >ommercia Bank and !samic Shariah Banks/
6o know a0out the competiveness amon* the !samicshariah0anks of Ban*adesh in respect to
the services provided 0y the =enera >ommercia Bank 0anks/
1/# Scope o0 the project
1"
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1'
6he pro)ect covers the topic 7A >omparative anaysis0etween !samic Shariah Banks and
=enera >ommercia Banks/8 6o conduct a study on this topic ! have *athered vaua0e
information from EWU i0rary. 5 Dhaka stock echan*e i0rary/ ! have aso *ot some
information from we0 sites that are reated to my topics/ ! have aso coected much information
from Security Echan*e >ommission i0rary/
1/+ 2imitation o0 the study
Shorta(e o0 time period!
! had to compete this report writin* within a shorter period of time/ So the time constraint of the
study hinderin* the course of vast area and time for preparin* a report within the mentioned period is reay difficut/
2ack o0 su00icient well in0ormed o00icials!
(any officias of the 0ranch are not we informed a0out some re4uired information/ ! had to
face many difficuties to coect this information/
1/, 3ethodolo(y 4 data sources
Project desi(n!
6his pro)ect report typicay focused on ratio anaysis 0ut there is some descriptive information
too/ 6wo *enera commercia 0anks and two !samic shariah 0anks are taken to evauate the two
different 0ankin* stye performances/
5ata sources!
6his report is prepared mainy on the etensive use of secondary data avaia0e in annua reports/
Based on the data from the annua reports the overa pro)ect report is prepared/ 6he overa
conceptua and theoretica framework has 0een epained as we as the how the data are
anay?ed is epained 0eow:
1&
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1+
1/,/1 5ata analysis!
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1,
1/,/& Conceptual 0ramework
1@
apita
atio
Sovency
atio
Li4uidity
atio
3rofit ratio Gther
ED!6 GE
LA
>A
!6EES6GA
3!>E 6DE !(
LD
G( DE
E3S
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1-
1/,/' Theoretical 8ramework
6he ratio anaysis invoves method of cacuatin* and interpretin* financia ratios to asses+ 0anks
performance/ !n order to compare performance of !samic 0anks and =enera commercia 0anks
for the period of "##2%"#1" the study uses inter%0ank anaysis/ 6he study evauates inter%0ank
financia performance of !samic and =enera commercia 0anks in term of profita0iity. i4uidity.
risk. capita ade4uacy. and others efficiency/ apita GEC J et !ncome 6ota E4uity >apita
o eturn on Assets GAC J et !ncome 6ota Assets
o et !nterest (ar*in !(C J K!nterest !ncome%!nterest EpenseC 6ota Assets
o et Gperatin* (ar*in G(C J et Gperatin* evenues 6ota Assetso Earnin*s 3er Share E3SC J et !ncome >ommon E4uity Shares Gutstandin*
2i9uidity atios
Li4uidity ratios measure the 0ank a0iity to meet its short%term o0i*ations/ Banks face i4uidity
pro0em due to ecess withdrawa from current and savin* account eadyratios/com. "##1C/
6here are severa measures of i4uidity/ Li4uidity position of 0anks is measured 0y usin* four
foowin* ratios/o >urrent atio >C J >ash and account with 0anks6ota deposits
o >urrent Asset atio >AC J >urrent asset 6ota asset
o Loan Deposit atio LDC J Loans Deposits
1'
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1%
isk atios
isk to the mana*er of a financia institution or to a re*uator supervisin* a financia institution
means the perceived uncertainty associated with a particuar event !nvestopedia/com. "###C/
Bankers aways try to achieve the hi*h stock vaue and hi*h profita0iity/ !n this case. ! have
chosen some vita risk that encountered daiy 0y financia institutions/ 6his are%
a/ Credit isk :6he 3ro0a0iity that Some of the Bank+s Assets Wi Decine in Vaue and
3erhaps Become Worthess/
o 6ota Loans6ota Deposits
0/ Interest ate isk 3easures! 6he Dan*er that Shiftin* !nterest ates (ay Adversey
Affect a Bank+s et !ncome. the Vaue of its Assets or E4uity/
o !nterest Sensitive Assets!nterest Sensitive Lia0iities
>/ Price isk! (arket vaue ratios reate the o0serva0e market vaues ike the stock price with
the 0ook vaues o0tained from the firmMs financia statements/
o 3rice Earnin*s atio
Capital Ade9uacy atios
>apita ratios indicate the heathiness of financia institution to shock withstandin* osses
!nvestopedia/com. "##"C/ 6hese ratios identify the aready eistin* 0ankin* pro0ems/ Adverse
trends in these ratios may increase risk eposure and capita ade4uacy pro0ems/ 6his study
focused on two foowin* >apita ratios/
o E4uity atio J Sharehoder+s E4uity 6ota Assets
ther 8inancial atios
12
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&.
Chapter .&
!. L/TE1AT;1E 1E
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&1
measured 0y the etent of its or*ani?ationa effectiveness/ !n the contet of services rendered
towards pu0ic the performance of an or*ani?ation can 0e viewed as Nthe etent to which its work
is carried out within esta0ished specifications for *oods and services produced to the *enera
satisfaction of the cientee served. within *iven cost and time constraints. and in such a manner
as to support or contri0ute to the achievement of the or*ani?ation o0)ectives/
Ber(er 4=umphery Fumhery. 1$$'C opinion that the measurement of performance of 0ankin*
sector is that which represent the scenario of *ood and 0ad performance of 0ankin* sector a
over the word/ By measurin* the performance a 0ank can resove the ackin* and perform 0etter
in future/
Bhattacharjee Bhattachar)ee. 1$2$C found that there are five different sets of productivity
represent the five different dimensions/ 6hree sets of showin* the productivity measurement and
the rest of the two showin* the risin* trend a0out the performance of a 0ank/ Bankin* Sector inBan*adesh to 0e associated with variations in poicies pertainin* to structure and processes as
we as variations in deposit mi. credit mi and service packa*e offered 0y 0anks/ Each of these
factors represented specific *roup of homo*enous productivity measures/ 6hey are empoyee
productivity. a0or productivity etc/
Chowdhury and Ahmed >howdhury. "##"C stated a0out the net income and the E3S of the
seected private commercia 0anks have increased from the previous year durin* "##& to "##@ 0y
conducted the research of the performance of the 0ankin* sectors/ Loans recovery rate indicated
that the 0anks are a0e to mana*e their credit efficienty/
Accordin( to ;cube cu0e. "##$C noticed that there are two 0road approaches to measure the
performance of the 0ankin* sector and accountin* approaches/ 6his makes use of economic
techni4ue and financia ratios/ 6raditionay accountin* methods primariy 0ased upon the use of
financia ratios have 0een empoyed for assessin* 0ank performance/
"1
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&&
Chapter .'
'/1 verview o0 bankin( system o0 Ban(ladesh
6he financia system of Ban*adesh is comprised of three 0road fra*mented sectors:
1/
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&'
voume of non%performin* oans 3LsC/ ed Commercial "anks 24C"s31 (ona"i *an) 3 grani *an)
2 anata *an) 4 Rupa"i *an)
Private Commercial "anks 2PC"s3
1u'a"i *an) 16"-ra&a Is"ami *an) t$
2ttara *an) 17(o%ia" Investment *an) t$
"&
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3Nationa" *an) t$ 18ut%-*ang"a *an) t$
4#e !ity *an) t$ 19er%anti"e *an) t$
5nite$ !ommer%ia" *an) t$ 20(tan$ar$ *an) t$
6 ra' *ang"a$es *an) t$ 21:ne *an) t$
7II! *an) t$ 22E;I *an)
8Is"ami 'an) *ang"a$es t$ 23*ang"a$es !ommer%e *an) t$
9" *ara)a *an) *ang"a$es t$ 24utua" #rust *an) t$
10Eastern *an) t$ 25irst (e%urity *an) t$
11N!! *an) t$ 26#e remier *an) t$
12rime *an) t$ 27*an) sia t$
13(out East *an) t$ 28#e #rust *an) t$
14 a)a *an) t$ 29 (a a"a" *an) imite$
15 I!* Is"ami% *an) 30 * *an)
8orei(n Bank
1 meri%an E .#e
*an)
11 (ami"Is"ami *an) :& *arain E!
6 Nationa" *an) o& a)istan 12 (tan$ar$ !artere$ *an)
5evelopment Banks
1*ang"a$es ?risi *an) 3 *ang"a$es (i"paRin(angsta
*an)
2Ra,sai?risinnayan *an) 4 *an) o& (ma"" In$ustries @
!ommer%e *ang"a$es t$
thers
1 nsar A nnayan *an) 3 rameen *an)
2 *ang"a$es (ama'ai *an) t$
.*(*
4 ?armasanstan *an)
Table # 02: Current Structure of Banking System in Bangladesh.
'/# Islamic bank
",
http://en.wikipedia.org/w/index.php?title=ICB_Islamic_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AB_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=AB_Bank&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=ICB_Islamic_Bank&action=edit&redlink=1
8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks
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&+
!samic 0anks in the 0ankin* sector demonstrated a remarka0e *rowth in >911/ 6he epansion
of the !samic Bankin* network was aso impressive/ As a proportion of the overa 0ankin*
industry. the com0ined share of !samic 0anks. ecudin* !samic Bankin* Branches windows of
conventiona 0anks was found around 1@ percent in assets. 12 percent in investments. 1'percent
in deposits. 1& percent in e4uity and 1@ percent in ia0iities as of end%Decem0er "#11 Ohan.
"#1,C/
'/+comparisons between Islamic bank and (eneral bank
?eneral commercial %ank
ing
/slamic "anking
oney is a %ommo$ity 'esi$es
me$ium o& e
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&,
enera" %ommer%ia" 'an)s use
money as a %ommo$ity /i%
"ea$s to ination
Is"ami% 'an)ing ten$s to %reate "in) /it
te rea" se%tors o& te e%onomi% system
'y using tra$e re"ate$ a%tivities (in%eB
te money is "in)e$ /it te rea" assets
tere&ore it %ontri'utes $ire%t"y in te
e%onomi% $eve"opment
Table # 0: Comparison of !eneral banking" slamic Banking.
Chapter! .#
#/1 atio analysis
atio anaysis is a study of the reationships 0etween financia varia0es/ !t is very important in
fundamenta anaysis which investi*ates the financia heath of any financia institution/ 6his
ratio anaysis *ives frank financia information in this current 0usiness word/ By *ivin* a *ance
anyone wi 0e a0e to know what the position that institution is in now/ 6herefore a
stakehoders take interest in ratio anaysis/
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&-
#/& Pro0itability ratios
3rofita0iity atios measure the overa earnin*s performance of an institution and its efficiency
in utii?in* assets. ia0iities and e4uity investopedia/com. "##"C/ 3rofita0iity ratios show a
companyMs overa efficiency and performance/ atios that show returns represent the firmMs
a0iity to measure the overa efficiency of the firm in *eneratin* returns for its sharehoders/
#/&/1 eturn on )9uity
eturn on e4uity measures a 0ank+s profita0iity which cacuates how much net profit that 0ank
may *enerates with the money that sharehoders have invested as e4uity !nvestin*answers/com.
"##-C/ 6he eturn on E4uity of a company measures the a0iity of the mana*ement of the
company to *enerate ade4uate returns for the capita invested 0y the owners of a company/ 6he
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&%
!'@ ""L!!.88
9.9
8.9)
7.9
).'7
*.87
/"L 9 *.9# 9 7.'! #.9 7.!)
(/"L !).)8 !). #0.7
#.8
7.0 !!.''
A/"L
!'.7
!'.
!0.0
8.#'
#.)
!0.#
Table # 0$: %eturn on &'uity.
Interpretations:
GE is very popuar ratio toward the sharehoders of any 0ank/ After doin* the anaysis on the
si seected 0anks the industry avera*e comes at ",/
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&$
0
5
10
15
2025
30
35
40
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 01: %eturn on &'uity
#/&/& eturn on Assets @A
6he eturn on Assets of a company determines its a0iity to utii?e the assets empoyed in that
company efficienty and effectivey to earn a *ood return !nvestopedia/com. "##,C/ eturn on
assets measures the amount of profit that the company *enerates as a percenta*e of the vaue of
its tota assets/ A companyMs return on assets GAC is cacuated as the ratio of its net income in
a *iven period to the tota vaue of its assets this ratio+s formua is%
4ame of
"ank
!008
2@3
!009
2@3
!00
2@3
!0
2@3
!0!
2@3
Avera
ge
2@3
/ndust
ry
Avera
"$
8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks
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'.
ge
-""L
.)0 .*0 !.!0 .90 .70 .78
!.'0
@
P"L .#0 !.#7 !.* !.07 !.0 .98
""L
.*'
.)*
.))
.#*
0.#)
.!9
/"L .!7 .#' .'7 .#) .!7 .#'
(/"L
!.!* !.07 #.0 .!* .'' !
A/"L
.80
.77
!.*)
!.0*
.#
.9!
Table # 0): %eturn on *ssets. Interpretations:
atio Anaysis for the eturn on Assets of seected si 0anks shows those in years "##2.
"##$."#1#. "#11. and "#1" the avera*e return from 1## taka invested is assets is respectivey
1/'2. 1/$2. 1/"$. 1/&,. ". and 1/$" respectivey for the Banks% DBBL. 3BL. BBL.
!BL. SF!BL and A!BL; and there avera*e is "/,#/ 6he hi*her the percenta*e is the 0etter for
the 0ank+s asset *rowth/ So we can say that !>B! !>B !samic BankC an !samic Bank without
any dou0t is in the 0est position compare to these other 0anks in respect to return on assets/ 6he
positions return on e4uity is shown in a *raph 0eow:
8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks
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'1
0
05
1
15
2
25
3
35
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 02: %eturn on *ssets.
#/&/' ;et Interest 3ar(in @;I3
et interest mar*in !(C is a measure of the difference 0etween the interest income *enerated
0y 0anks or other financia institutions and the amount of interest paid out to their enders for
eampe. depositsC. reative to the amount of their interest%earnin*C assets Answers/com. "##'C/
!t is simiar to the *ross mar*in of non%financia companies/
4ame of
"ank
!008
2@3
!009
2@3
!00
2@3
!0
2@3
!0!
2@3
Avera
ge
2@3
/ndustr
y
Averag
e
-""L #.# !.90 '.0 '.90 '.#8 #.9!
!.'#
@
P"L !.!8 !.# #.'9 !.* !.)! !.*'
""L
!.'*
!.##
.97
!.*7 !.0 !.)*
/"L '.0 #.7 #.8# '.!9 #.#9 #.8)
&1
;et Interest 3ar(in @;I3 D@Interest Income?Interest )*pense Total
http://en.wikipedia.org/wiki/Interesthttp://en.wikipedia.org/wiki/Interest
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'&
(/"L #.9 !.8* !.9! #.'! #.## #.!9
A/"L 0.79 0.8
!.)
0.!9 .0# .'
Table # 0+: ,et nterest ncome.
Interpretations:
As the net interest mar*in measures how ar*e a spread 0etween interest revenues and interest
epenses mana*ement has 0een a0e to achieve 0y cose contro over earnin* assets and pursuit
of the cheapest source of fundin*. thus from the a0ove cacuation we can definitey say that
Dutch%Ban*a Bank imited is in the 0est position in terms of the net interest mar*in comparin*
with other five 0anks/ DBBLhas a net interest ratio of &/$" whereas the industry avera*e of
these 0anks is "/,&/ 6wo !samic 0anks are havin* simiar type of percenta*es i/e/ &/2- and
&/"$ . on the other hand 3rime Bank Limited is havin* a percenta*e of "/@,/
0
051
15
2
25
3
35
4
45
5
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 0: ,et nterest -argin.
#/&/# ;et peratin( 3ar(in @;3
&"
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''
6his ratio says how effectivey mana*ement is runnin* its operations 0y usin* assets to *enerate
income and epenses !nvestopedia/com. 1$$$C/ A companyMs operatin* income after operatin*
epenses are deducted. 0ut 0efore income taes and interest are deducted/ 6he formua is%
4ame of
"ank
!008
2@3
!009
2@3
!00
2@3
!0
2@3
!0!
2@3
Avera
ge
2@3
/ndust
ry
Avera
ge
-""L #.9 #.# '.) #.88 #.#' #.)7
#.#0
@
P"L !.9 382 #.0) #.*8 278 #.!)
""L ).)! #.)0 '.0! #.* #.') '.0!
/"L #.) #.!0 #.!) !.0 !.#0 !.87
(/"L '.0 #.'* '.)0 !.78 !.*) #.)0
A/"L
#.#9
#.!8
#.8)
#.70
#.')
#.)#
Table # 0: ,et /perating -argin.
Interpretations:
atio Anaysis for the et Gperatin* (ar*in shows that the industry avera*e is &// Amon*
the si seected 0anks BBL and Shah Haa !samic Bank Limited SF!BLC is in the 0est position
with havin* an a0ove avera*e operatin* mar*in of ,/#" and &/-' whereas the two seected
0ank DBBL and BBL aso achieved a0ove avera*e mar*in/ !t means SF!BL. DBBL. BBL. A!BL
a four 0anks are havin* effective mana*ement for their operations/ 6he positionof these 0anks
is shown in a *raph 0eow:
&&
;et peratin( 3ar(in @;3 ;et peratin( evenues Total
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'#
0
1
2
3
4
5
6
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 0$: ,et /perating -argin.
#/&/+ )arnin(s per Share @)PS
6he portion of a companyMs profit aocated to each outstandin* share of common stock /
>ompanies usuay report the wei*hted avera*e of the num0er of shares outstandin* over the
reportin* period !nvestopedia/com. "###C/ Earnin*s per Share are a widey used measure of
profita0iity/ et income of a firm divided 0y the num0er of its outstandin* shares the shareshed
0y the stockhoders sharehodersC/ 6he formua is
&,
http://www.allbusiness.com/glossaries/common-stock/4948841-1.html?lc=int_mb_1001http://www.allbusiness.com/glossaries/shares-outstanding/4954094-1.html?lc=int_mb_1001http://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/outstanding-shares.htmlhttp://www.businessdictionary.com/definition/outstanding-shares.htmlhttp://www.businessdictionary.com/definition/share.htmlhttp://www.businessdictionary.com/definition/held.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/shareholder.htmlhttp://www.allbusiness.com/glossaries/common-stock/4948841-1.html?lc=int_mb_1001http://www.allbusiness.com/glossaries/shares-outstanding/4954094-1.html?lc=int_mb_1001http://www.businessdictionary.com/definition/net-income.htmlhttp://www.businessdictionary.com/definition/outstanding-shares.htmlhttp://www.businessdictionary.com/definition/share.htmlhttp://www.businessdictionary.com/definition/held.htmlhttp://www.businessdictionary.com/definition/stockholder.htmlhttp://www.businessdictionary.com/definition/shareholder.html
8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks
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'+
4ame of
"ank
!008
2@3
!009
2@3
!00
2@3
!0
2@3
!0!
2@3
Avera
ge
2@3
/ndust
ry
Avera
ge
-""L ).7 ).7 0 0.80 .*0 8.7*
*.!
@
P"L #/'. -/%. +/-. #/-. &/&& '.9'
""L
#.9)
!.9'
).0)
'.!9
.#!
#.)
/"L '.## '.)9 '.'* '.8' '.'! '.)#(/"L !.98 #.9 '.*) !.0 #.*! #.'*
A/"L
#.7!
!
'.'
#.7#
!.#8
#.9
Table # 0: &arnings er Share.
Interpretations:
atio Anaysis for the Earnin*s per Share shows that the industry avera*e is @/1"/ Amon* the
si seected 0anks a DBBL is in the 0est position with havin* a earnin*s per share is 2/'@
0ecause of the num0er of outstandin* shares increased tremendousy in ast two years/ Whereas
a other three 0anks are havin* an E3S of 0eow industry avera*e that is ,/$, for 3BL. &/-1for
BBL for !BL ,/-& for A!BL is &/1$./ 6he positionof these 0anks is shown in a *raph 0eow:
&-
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',
0
2
4
6
8
10
12
14
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 0): &arnings er Share.
#/'2i9uidity ratio
Li4uidity ratios measure the 0ank a0iity to meet its short%term o0i*ations/ Banks face i4uidity
pro0em due to ecess withdrawa from current and savin* account/ 6here are severa measures
of i4uidity/ Li4uidity position of 0anks is measured 0y usin* four foowin* ratios/
&@
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'-
#/'/1 Current atio @C6he ratio is mainy used to *ive an idea of the 0ankMs a0iity to pay 0ack its short%term
ia0iities with its short%term assets investorwords. 1$$2C/ 6he hi*her the current ratio. the more
capa0e the 0ank is of payin* its o0i*ations/
4ame of
"ank
!008 !009 !00 !0 !0! Avera
ge
/ndustr
y
Average
-""L .7 .9
.!)
.' .! .7
*.'0P"L .' .0).09
.0! .0! .0*
BB2
.0#
!.)0
!.#!
#.*0
!.'0
!.#7
/"L .09 .! .09 .08 .* .(/"L .'9 #.09 #.#7 #.!8 .0 !.')
A/"L
#.0)
#.9
#.#0
!.97
!.8'
#.07
Table # 0: Current %atio.
Interpretations
Accordin* to resut the current ratio the industry avera*e is @/,#/ Which mean the industry has
11/-1 taka of currents assets a*ainst 1 taka of short term de0t or ia0iityP !t means the industry
has the a0iity to pay off its current ia0iities with its current assets/
8/18/2019 A Comparative Analysis between General Commercial Banks and Islamic Shariah Banks
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'%
they invested ess in short term assets/ Gn the other hand !BL and BBLis 1/11 and "/&' times
respectivey/ !n fact the hi*her the current ratio is 0etter for the institution 0ecause this hi*her
ratio heps to prevent *ettin* defaut/ 6hus SF!BL is in the 0etter position to prevent *ettin*
defaut/
0
2
4
6
8
10
12
14
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 0+: Current %atio.
#/'/& Current Asset atio @CA
6he current assets ratio measures a companyMs a0iity to pay the ia0iities that it is most ikey to
have to pay soon with that assets that shoud yied cash the 4uickest/ 6he
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'$
-""L 8.'* 8.# 9.9' 8.** !.0* 9.')
).7
@
P"L 7.8 7.## ).!8 *.87 *.#8 *.7#
""L
0.#7
!.8'
.'9
.'0
*.*'
!.))
/"L #.)7 #.'7 .8 0.'# 8.** .)9
(/"L !0.88 7.8! *.) *.)0 9.)* *.8
A/"L
*.!
7.)
).*#
*.87
8.'9
*.9!
Table # 10:Current *sset %atio.
Interpretations:
Accordin* to resut the current asset ratio the industry avera*e is 1-/1'/ Which mean the
industry has 1-/1' taka of currents assets a*ainst 1 taka of short term de0t or ia0iity/ !t means
the industry has the a0iity to pay off its current ia0iities with its current assets/
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#1
-""L *8.79 )9.' **.7' *'.*! )8.77 **.*7
7'.)#
@
P"L 7!.89 7'.08 7'.*7 7#.98 7!.08 7#.)8
""L
7!.89
79.!#
78.0#
7*.07
7).90
7*.'!
/"L 79.* 78.') 80.#0 7*.' 7).'! 78.0
(/"L 7'.*# 7'.* 78.9 7*.*# 7'.*) 7).7'
A/"L 7'.*!
7'.'8
7!.'0
7!.79
7.'!
7#.'
Table # 11: 3oan %atio.
Interpretations:
Accordin* to resut the 6ota Loans to tota asset ratio+s industry avera*e is ',/-&.which mean
that the industry has used their assets of 1## 6aka to *ive ',/-& taka vaued oans/
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##
0
20
40
60
80
100
120
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 0: Total 3oans To 4eposits.
#/#/& Interest ate isk atio
!nterest ate isk in the dan*er that shiftin* interest rates may adversey affect a 0ank+s net
income. the vaue of its assets or e4uity/6he risk that an investmentMs vaue wi chan*e due to a
chan*e in the a0soute eve of interest rates. in the spread 0etween two rates. in the shape of the
yied curve or in any other interest rate reationship/
#/#/&/1 Interest Sensitive Gap
!nterest sensitive assets to interest sensitive ia0iities or repica0e assets to ia0iity shows that
portion of !nterest sensitive assets for interest sensitive ia0iity/6o achieve smooth runnin* for
the or*ani?ation 0anks must have hi*her per cent of retracea0e asset to ia0iity ratio/
,,
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#+
4ame of
"ank
!007
2@3
!009
2@3
!00
2@3
!0
2@3
!0!
2@3
Avera
ge
2@3
/ndustr
y
Average
-""L 88.8* 8*.88 8).'! 89.!) 89.90 88.0*
88.0#
@
P"L
9.0*
88.*
8#.78
8.89
80.!)
8).0!
""L 90.') 87.08 9.)* 8).09 8.*7 87.7/"L 87.)# 88.! 8*.') 88 88.90 87.08
(/"L 0!.8
*
0#.*
*
0.7
7
0!.)
'
0#.
*
0!.*
0
A/"L 89
89.78
87.'!
8*.)#
89.)#
88.')
Table # 1: nterest Sensiti5e 6*sset73iabilities8.
Interpretations:
Accordin* to resut the !nterest Sensitive Asset to !nterest Sensitive Lia0iities the industry
avera*e is 22/#& or #/22.which mean that the industry is ia0iity sensitive that is they have ess
interest sensitive asset then interest sensitive ia0iity/
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#,
0
20
40
60
80
100
120
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart?1.! Interest Sensitive Gap
#/#/' Price risk
Especiay to these market vaue movements are 0ond. portfoios and stockhoders+ e4uity. which
can dive suddeny as market prices move a*ainst a financia firm !nvestopedia/com. "##1C/
(arket vaue ratios reate the o0serva0e market vaues ike the stock price with the 0ook vaues
o0tained from the firmMs financia statements/
#/#/'/1 Price )arnin(s atio @P) atio
3rice earnin*s ratio shows how much an investor is wiin* to pay per taka of reported profit/ !t is
cacuated 0y dividin* the stock price per share 0y the earnin*s per share E3SC Leicon/ft/com.
"###C/ 6he formua is *iven 0eow:
,@
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#-
4ame of
"ank
!008
Times
!009
Times
!00
Times
!0
Times
!0!
Times
Avera
ge
Times
/ndustry
Average
-""L 78.70 #'.'0 !!.90 ) 9.90 #!.8
#.
Times
P"L !.88 9.'7 *.*0 8.#' !.'* .9)
""L
9.)7
.0'
*.9)
8.87
0.80
#.')
/"L 0.78 !.87 #.!9 .!7 9.*8 .)8
(/"L 8.)) !.!' #. ).'8 9.7 .7
A/"L
9.)#
.!#
#.!'
0.#
0.!
0.89
Table # 1$: 7& %atio.
Interpretations:
Accordin* to the anaysis of 3rice Earnin*s atio the industry avera*e is 1&/11 times.which
mean that the industryinvestors are wiin* to pay 1&/11times per taka of reported profit/
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#%
0
10
20
30
40
50
60
70
80
90
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 11: rice &arnings %atio.
#/+Capital ade9uacy ratio
6his ratio is a measure of a 0ankMs capita/ !t is epressed as a percenta*e of a 0ankMs risk
wei*hted credit eposures/ 6his ratio is used to protect depositors and promote the sta0iity and
efficiency of financia systems around the word/ !t is aso known as Q>apita to isk Wei*hted
Assets atio >AC/Q
#/+/1 )9uity ratio
E4uity atio indicatin* the reative proportion of e4uity used to finance a companyMs assets
eadyratios/com. "###C/ 6he E4uity ratio measures the proportion of the tota assets that are
financed 0y stockhoders and not creditors/ A ow e4uity ratio wi produce *ood resuts for
,2
http://en.wikipedia.org/wiki/Equity_(finance)http://en.wikipedia.org/wiki/Equity_(finance)
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+.
0
2
4
6
8
10
12
14
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 12: &'uity %atio.
#/, ther0inancialratios
#/,/1 ate o0 eturn on 2oans
6his ratio indicates the rate of return on oans means in which rate the 0orrowers of oan return
their oans/ Fi*her rate of return for a company means 0etter the position of i4uid assets
!nvestopedia. "###C/ So that 0anks can further end money and earn interest incomes/
-#
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+1
4ame of
"ank
!008
2@3
!009
2@3
!00
2@3
!0
2@3
!0!
2@3
Avera
ge
2@3
/ndustry
Average
-""L .97 !.#) !.9* !.7 !.)! !.)0
#.0#@
P"L !.99 !.77. #.!' #.'9 #.#) #.7
""L .08 .#* !.#7 !.) .8) .8#
/"L 0.8* 0.79 0.99 0.8 0.89
(/"L #.87 #.0# !.8* #.'# #.*! #.#*
A/"L
0.8)
.)0
!.#'
.7!
0.9
.'*
Table # 1+: %ate of %eturn on 3oans.
Interpretations:
Accordin* to the anaysis of rate of return on oans the industry avera*e is &/#&.which mean
that the Borrowers have returned &/#& of their tota oans/
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+&
0
05
1
15
2
25
3
35
4
45
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 1: %ate of %eturn on 3oans.
#/,/& 2oan to Assets atio
Loan to asset ratio is used to measure the reation of the 0ank+s oan portfoio to the tota
assets/Fi*h Noans to assets+ ratio mi*ht mean two thin*s:
Bank is at hi*her risk 0ecause oans are ess i4uid assets than other financia assets/
Loans usuay are the most profita0e assets of the 0ank. and it is hi*hy epected that
0ank with hi*h Noans to assets ratio+ wi have hi*her Nnet interest income+/
-"
2oan to Asset atio Total 2oansTotal Asset
http://www.investingforbeginners.eu/liquidityhttp://www.investingforbeginners.eu/liquidityhttp://www.investingforbeginners.eu/financial_assetshttp://www.investingforbeginners.eu/net_interest_incomehttp://www.investingforbeginners.eu/liquidityhttp://www.investingforbeginners.eu/financial_assetshttp://www.investingforbeginners.eu/net_interest_income
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+#
0
10
20
30
40
50
60
70
80
90
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ? 1#! 2oan To Asset atio
#/,/' Total 5ebt to )9uity atio
6he de0t%to%e4uity ratio is a financia ratio indicatin* the reative proportion of entityMs e4uity
and de0t used to finance an entityMs assets
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+,
0
5
10
15
20
25
30
35
40
45
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
Chart ( 1): 4ebts to &'uity %atio.
#/,/# 5ebt to assetatio
De0t ratio is a ratio that indicates the proportion of a companyMs de0t to its tota assets/ !t shows
how much the company reies on de0t to finance assets !nvestorwords/com. "###C/ 6he de0t
ratio *ives users a 4uick measure of the amount of de0t that the company has on its 0aance
sheets compared to its assets/ 6he hi*her the ratio. the *reater the risk associated with the firmMs
operation/ A ow de0t ratio indicates conservative financin* with an opportunity to 0orrow in the
future at no si*nificant risk/ 6he formua for cacuatin* de0t ratio is R
-@
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+%
0
10
20
30
40
5060
70
80
90
100
ut% 'ang"a 'an)
prime 'an)
*ra% 'an)
Is"ami 'an)
sa,"a" 'an)
"-ra&aIs"ami 'an)
>hart%1@: De0ts to Asset atio/
-2
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+$
Chapter! +
+/1 8indin(s o0 theprojectata(lance
After doin* the ratio anaysis on the seected traditiona and !samic Banks. ! have found too
many thin*s reatin* to my 3ro)ect topic “A comparative analysis between General Commercial
Banks and IslamicShariah Banks”. 0ut everythin* is not possi0e to show in this report/ 6hus !
have summari?ed the overa ratio anaysis in a Sin*e ta0e it is *iven 0eow:%
1atio 4ame
*an)s er&orman%e on an verage
&rom
2008-2012
ut%
*ang"a
rime
*an)
*ra%
*an)
Is"ami
*an)
(a,"a"
*an)
I
ra&a
*an
1 Return on Equity 2918F 2087F 168
7F
1725
F
2244F 201
2 Return on sset 178F 198F 129F
134F 2F 192
3 Net Interest argin 392F 264F 256
F
385F 329F
4 Net :perating
argin
357F 325F 402
F
287F 35F 353
5 Earnings er (are 876F 494F 351
F
453F 346F 319
*. Current
1atio%times&
117F 106F 237
F
111F 1245F 307
7 !urrent sset Ratio 945F
673F
125
5F
1159
F
1618F 692
8 oan Ratio 6667F 7358F 764
2F
781F 7574F 731
-$
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,.
9 oans to eposit
Ratio
7593F
8585F 872
5F
8916
F
9682F 942
10 I( sset to ia'i"ity
Ratio
8806F 8502F 871
7F
878F 1026F 884
. P6E 1atio
2'imes&
3218F 1195F 134
5F
1158
F
1171F 108
12 Equity Ratio 633F 115F 75F 715F 794F 949
13 Rate o& Return on
oans
25F 317F 183
F
089F 336F 146
14 oan to ssets 6365F 711F 677
5F
78F 755F 731
15 e't to Equity 2508F 1023F 1292F
1311F
1318F 832
16 e't Ratio 9335F 9107F 921
4F
9285
F
9174F 804
Table &.! 8indin(s at a Glance/
+/&Per0ormance indicator
Based on the ratio anaysis the performance indicator is se*mented into five cate*ories/ 6hese are
summari?ed 0eow:
+/&/1 Pro0itability
!n terms of profita0iity. the performance 0etween traditiona and !samic Banks is ceary
indicatin* that *enera commercia 0anks are doin* tremendous work compare to the !samic
0anks/ Like the return on e4uity and net interest mar*in shows the proof of my statement/ Durin*
the anaysis ! have found that !>B !samic Bank in their financia statement is too much
fuctuatin* in fi*ures/ 6hus the resut varies too much/
@#
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,1
6he reasons for hi*h profita0iity prospect 0y !>B !samic Bank indicate the various interna and
eterna factors that are directy or indirecty infuencin* their performance/ 6hese reasons are
summari?ed 0eow:
By ookin* at the GA of !>B !samic 0ank we can say that their mana*eria efficiency is
up to the mark and eacty e4ua to the industry avera*e/
6he rate of return fowin* to the sharehoders is another factor that indicates hi*her
profita0iity/
Fi*her return on asset directy indicates the fact that they are doin* we enou*h to run
their 0usiness with accepta0e eve of profit/
Another reason of havin* profit is hi*her interest revenue compare to the interest
ependitures/
B! have fair enou*h i4uidity compare to the
*enera commercia 0anks in case of Loan ratio. current asset ratio as we as current ratio/ !n
every case the outcome of this 0ank which is representin* !samic 0anks is hi*her than the
industry avera*e/
!n terms of i4uidity. the !samic 0anks of Ban*adesh are doin* a tremendous )o0 compare to the
*enera commercia 0anks/ 6he reasons are summari?ed 0eow:
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,&
By ookin* at the ratio anaysis we can easiy comments that in terms of the current
ratio. current asset ratio and oan ratio. !samic 0anks are *oin* faster than the *enera
commercia 0anks/
6hey are havin* enou*h cash on their hand compare to the deposits as we as they
are providin* more oans to the 0orrowers compare to the deposits in a 0aanced way/
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,'
+/&/+ thers
6hrou*h the oan and de0t reated ratios. the performance comparison is done smoothy. where
differences can 0e identified easiy/ !s case of return on oan and de0t to e4uity. the *enera
commercia 0anks are far ahead of !samic 0anks/ Gn the other hand !samic 0anks are far ahead
of *enera commercia 0anks in case of oan to asset and de0t ratio/ But in reaity they are
tremendousy 0ehind from *enera commercia 0anks/ As 0ecause they may 0e hi*her in num0ers
in outcomes 0ut that was ne*ative measures that a**in* them 0ehind/
6he proportions of net interest income to tota oans are hi*her in terms of the *enera
commercia 0anks/ Because =enera commercia 0anks a0e to coect their interest
incomes propery. this is o0viousy hi*her than the tota interest ependiture/ 6he *enera commercia 0anks are havin* enou*h assets incudin* tan*i0e as we as
intan*i0e to cover up the overa oans compare to the !samic 0anks/
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,#
0ecause in our country ma)ority peope are (usim. !samic 0ankin* has an opportunity to *ear
up their 4uaity of services and *ra0 maimum amount of market shares/ 6o compete in this
competitive market with *enera commercia 0ankin* system they must have ade4uate capita/
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,,
*.# "i%liography
A Arafah Bank. "##2."##$."#1#."#11."#1"/ Annual Report / Dhaka: A Arafah Bank/
Answers/com. "##'/ Deinition o !et Interest "ar#in/ KGnine Avaia0e at:
www/answers/comtopicnet%interest%mar*in%1 KAccessed 12 howdhury. A/. "##"/ 3oitics. Society and ommerciaa ! Ban*adesh/ Sonali
Bank . 111#1C/
Fumhery. B/5/. 1$$'/ Efficiency of
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,-
!nvestin*answers/com. "##-/ Deinition o Return o )+uity/ KGnine Avaia0e at:
www/investin*answers/comfinancia%dictionaryfinancia%statement%anaysisreturn%e4uity%roe%
$1@ KAccessed 12 ontet of Ban*adesh Bankin*
!ndustry/ ABAC . "'"C/
@'
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Ohan. (/6/A/. "#1,/ $u#e Demand orIslamic Bankin# In Ban#ladesh/ !samic
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$TE1( Loan to Assets
1atio
#ota" oansG#ota" sset
Total -e%t to
E5uity 1atio
#ota" ia'i"ities G #ota" Equity
-e%t 1atio #ota" e't G #ota" ssets