Welcometo my

presentation

Mahmudul HasanID No: 11121101202

BBA,26th IntakeMajor in Finance

PRESENTATION

On

Financial performance Analysis of Janata Bank

Objectives of the ReportMethodology of the ReportLimitation of the StudyCustomers’ Perception Regarding the Financial performance Analysis of Janata BankFindings of the StudyRecommendationsConclusion

As a mandatory requirement of the Bachelor of Business Administration (BBA) program, I was assigned to do my internship in JBL for a period of three months. For the completion of BBA degree I have got an opportunity to do my internship at JanataBank Ltd.Without practical exposure theory can never be acquired.

Background of the report

Broad Objective:The prime objective of this report is to analyze the Financial performance Analysis of Janata Bank.

Objective

The following objectives can be listed as the

specific objectives for this study:

To assess the liquidity position of Janata Bank Ltd. To examine the asset management quality of

Janata Bank Ltd. To analyze the debt position of Janata Bank Ltd. To evaluate the profitability position of Janata

Bank Ltd.

Objective Continue

Specific objectives:  

DATA & METHODOLOGY

Annual report of JBL (20012 to 2013) Various reports related to study Website of JBL. www.jbl-bd.com Monthly statement of the branch.

The study, credit operation of Janata bank ltd, is analytical in nature.

Description and sources of data:

Methodology:

LIMITATION OF THE STUDYSome of the limitations I have face while preparing this Report

are listed as follows:

Time Limitation: To complete the study, time was limited by three months. It was really very short time to know details about an organization like Janata Bank Ltd.

Inadequate data: Lack of available information about of Janata Bank Ltd. Because of the unwillingness of the busy key persons, data collection became hard. The employees are extremely busy to perform their duty.

Lack of record: Large scale research was not possible due to constrains and restrictions posed by the organization.

ANALYSIS PART

Year 2009 2010 2011 2012 2013

Current Asset 155364.59 170124.18 211780.5 227310 285730.53

Current Liabilities 153319.68 167016.14 199259.3 219102.7 275583.75

Current ratio (times) 1.01 1.01 1.06 1.03 1.04

2009 2010 2011 2012 20130.980.99

11.011.021.031.041.051.061.07

1.01 1.01

1.06

1.031.04

Current ratio (In millions)

Current Ratio

Graphical Presentation:

(In millions)

Year 2009 2010 2011 2012 2013

Current Asset 155364.59 170124.18 211780.47 227310.99 285730.53

Current Liabilities 153319.68 167016.14 199259.27 219102.72 275583.75

Net working capital 2044.91 3108.04 12521.21 8207.27 10146.78

2009 2010 2011 2012 20130

2000

4000

6000

8000

10000

12000

14000

2044.913108.04

12521.21

8207.27

10146.78

Net working capital (In millions )

Net Working Capital (In millions)

Graphical Presentation:

Year 2009 2010 2011 2012 2013

Total Asset 293662 345234 440349 511129 586083

Total Liabilities 279802 325288 410918 494809 548967

Debt ratio (%) 95.28 94.22 93.31 96.80 93.67

2009 2010 2011 2012 201391

92

93

94

95

96

97

98

95.28%

94.22%

93.31%

96.8%

93.67%

Debt ratio (%) (In millions)

Debt Ratio(In millions)

Graphical presentation:

Year 2009 2010 2011 2012 2013

Time Interest Earned Ratio (Times) 1.33 1.54 1.60 1.41 0.35

2009 2010 2011 2012 20130.000.200.400.600.801.001.201.401.601.80

1.331.54 1.6

1.41

0.35

Times Interest Earned Ratio (Times)

Time interest earned ratio

Graphical presentation:

Year 2009 2010 2011 2012 2013

Return on Asset 1.00% 0.77% 1.12% (3.50%) 1.42%

2009 2010 2011 2012 2013

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

1.00%0.77%

1.12%

-3.50%

1.42%

Return on Asset

Return on Asset (ROA)

Graphical presentation:

Year 2009 2010 2011 2012 2013

ROE 23.38% 27.80% 16.32% (49.74%) 30.09%

2009 2010 2011 2012 2013

-60.00%

-50.00%

-40.00%

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

40.00%

23.38%27.80%

16.32%

-49.74%

30.09%

ROE

Return on Equity (ROE)

Graphical presentation

Year 2009 2010 2011 2012 2013

Net profit 300.43 491.16 421.45 (15280.34) 9551.39

Operating profit 8578.12 12036.40 15722.32 14533.8 12127

Net profit margin 3.50% 4.08% 2.68% (105.15) 7.88%

2009 2010 2011 2012 2013

-120.00%

-100.00%

-80.00%

-60.00%

-40.00%

-20.00%

0.00%

20.00%

3.50% 4.08% 2.68%

-105.15%

7.88%

Net profit margin (BDT in millions)

Net Profit Margin

Graphical presentation

Year 2009 2010 2011 2012 2013

Cost to income ratio 77.98% 70.65% 61.31% 60.68% 64.37%

2009 2010 2011 2012 20130.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

77.98%70.65%

61.31% 60.68%64.37%

Cost to income ratio

Cost to Income Ratio

Graphical presentation:

MAJOR FINDINGS

 The study, Financial performance analysis of JBL, reveals

the following major findings.  JBL’s current ratio was fluctuated mode from 2009 to 2013. In 2009,

JBL was maintaining 1.01 tk. Current assets against 1 tk.

Current liability but in 2010 its current ratio is equal to 2009. In 2013 the current ratio has decreased to 1.04

JBL’s time interest earned ratio has increased except in 2012 and 2013.

Cost to Income ratio is in decreasing trend from 2009 to 2012 but in 2013 this ratio has increased aging to 64.37% from 60.68% in previous year.

Net profit margin was fluctuating from 2009 to 2011. But in 2012 net profit margin dramatically decreased to (105.15) %. But in 2013 it again increased to 7.88%.

The study of Financial performance analysis of JBL requires the following recommendations.

  Current ratio of JBL is enough to recover its current

liabilities through it was decreased in 2013 than 2012.

JBL should reconsider its capital structure with a view to decrease its debt level and achieve an optimum capital structure.

As cost to income ratio is increased in 2012, bank should reduce the operating cost to decrease the ratio.

RECOMMENDATIONS

Internship is a bridge between theoretical knowledge and

practical knowledge. Now that I have completed my

Internship, I believe the experience I have gathered working

in the official environment will be proven vital for me to go

ahead in my professional life. During my internship I have

realized how modern Science and Information Technology

have been contributing more and more to the development

of operational and management process. To serve customers

well, companies need to be skillful in many areas faster

development of new business strategies, shrinking company

formalities, reducing procedure times, improving customer

service and increasing and maintaining knowledge for

accomplishing all these goals.

CONCLUSION