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Welcome to OurPresentation

Topic: Competitor analysis of

HSBC Bank Bangladesh

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A S M Shihab - - - 12202120Mohammed Ali - - - 12202097MD. Ubydul Islam - - - 12102023

Jannatul ferdous - - - 12102412Nadia sultana - - - 12202001khadema ferdousi ---- 12302013

GroupMembers

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Marketing sector analysis

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Product and

price

HSBC Bank Mercantile BankLtd.

AB Bank Ltd Prime Bank Ltd.

Home loan, Car

loan, Marriageloan, student loan,

personal loan,

Travel loan,

Furniture loan,

Student loan,

Transport Scheme,Taxi cab Scheme,

Doctors loan,

Agriculture loan,

Commercial

lending, workingcapital, House

building loan,

Small or large

industry loan, Loan

against export.

Small enterprise,

MediumEnterprise,

Advance Against

share, Information

technology sector,

home loan.

Interest Rate

13.5% --- 14%

Interest Rate

12% ---- 16%

Interest Rate

12% ---- 15%

Interest Rate

14% --- 15%

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Promotions

Name of Bank Preferred medium of

promotion

Details

HSBC Bank Print & Electronic National and

international channels

Mercantile Bank Ltd Print & Electronic, Bill-

board

National channels,

news paper,

AB Bank Print & Electronic, Bill

Board

Bill board, foot over

bridge.

Prime Bank Print & Electronic

media, Newspaper

National dailies &

channele.

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Financial analysis

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Bank Profitability:

Like all businesses, banks profit by earning more moneythan what they pay in expenses. The major portion of abank's profit comes from the fees that it charges for itsservices and the interest that it earns on its assets. Its

major expense is the interest paid on its liabilities.

The major assets of a bank are its loans to individuals,businesses, and other organizations and the securities

that it holds, while its major liabilities are its depositsand the money that it borrows, either from other banksor by selling commercial paper in the money market.

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To analyze performance of competitor we calculate

different financial ratios, we use following ratios-

1. ROE (Return on Equity)

2. ROA (Return on Asset)3. Net Interest Margin.

4. Equity multiplier .

5. Expense control efficiency.

6. Earning spread.

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ROE (Return on Equity):

ROE= (Net Income Total Equity) 100

Year 2010 2011 2012

HSBC29.96% 31.60% 29.62%

Mercantile

bank Ltd.12.6% 17.96% 19.83%

AB Bank

Ltd.28.20% 9.27% 9.0%

Prime bank21.23% 19.15% 12.88%

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ROA (Return on Asset):

ROA= (Net Income Total Asset) 100

Year 2010 2011 2012

HSBC

3.20% 4.23% 4.95%

Mercantil

e bank

Ltd.

1.63% 1.49% 8.97%

AB Bank

Ltd.

2.97% 0.90% 0.83%

Prime

bank2.35% 1.83% 1.33%

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ROA

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Equity Multiplier :

Equity Multiplier == ( Total Asset Total equity capital )

Year 2010 2011 2012

HSBC

9.24X 7.46X 6.05X

Mercanti

le Bank

Ltd.

12.13X 12.07X 14.10X

AB BankLtd.

9.47X 10.29X 10.83X

Prime

Bank9.12X 10.43X 11.46X

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Equity multiplier

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Net Interest Margin:

Net Interest Margin= (Total Interest Income TotalInterest Expense) Average Earning Asset

Year 2010 2011 2012

HSBC

3.32% 4.52% 4.82%

Mercantil

e Bank

Ltd.

2.86%2.31% 2.73%

AB Bank

Ltd. 3.04% 2.15% 2.17%

Prime

Bank2.80% 2.23% 2.44%

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Expense control Efficiency :

Expense control Efficiency= (Pre tax net income Total operating revenue ) 100

Year 2010 2011 2012

HSBC

67.72% 77.39% 79.80%

Mercanti

le Bank

Ltd.

28.86% 24.48% 20.10%

AB BankLtd.

59.21% 40.07% 38.76%

Prime

Bank57.82% 56.95% 39.39%

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Earning spread:

Year 2010 2011 2012

HSBC

1.1010 0.440 1.569

Mercantil

e Bank

Ltd.3.08 2.40 2.52

AB Bank

Ltd.0.0480 -0.8091 - 0.8539

Prime

Bank 0.0197 0.0074 0.013

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1.101

3.08

0.048 0.0197

0.44

2.4

-0.8091

0.0074

1.569

2.52

-0.8539

0.013

HSBC Bank Mercantile

Bank

AB Bank Prime Bank

Earning spread2010 2011 2012

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Findings :

HSBC bank has good return on equity compare toother competitor.

HSBC bank has good ROA compare to other

competitor.

In the case of earning spread Mercantile bank hasgood earning spread compare to other competitor.

HSBC bank has good NIM over the year.

In the case of expense control HSBC is good control

over their cost.

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HSBC wants to establish itself as the Leading

International Bank in the world and their goal is

to connect business with new opportunities

around the globe. It wants to pave a smooth

avenue for businesses who wants to reachwhere it was unreachable. While focusing on

commercial banking they have made the

strategic move of reducing their operations in

the retail banking in Bangladesh. While peoplecomprehends that this is a step backwards

HSBC is focusing in reaching something even

bigger where stakes are high in a competitive

world environment.

Conclusion

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THANK YOU

FOR LISTENING

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