Professional Documents
Culture Documents
Submitted to
Naznin Sultana Chaity
Lecturer
School of Business
Submitted By
Md. Likhon
1
08.01.02.005
Farhan Uddin Ahmed
08.01.02.023
Md. Atiqul Islam
2
08.01.02.025
Muhammad Sazzad Hussain Chowdhury
08.01.02.027
School of Business
Date of submission
03-July-2010
AHSANULLAH UNIVERSITY OF SCIENCE AND TECHNOLOGY
3
Executive Summary:
Various groups of individuals are particularly interested in evaluating bank
performance. Firstly, bank shareholders are directly affected by bank
performance. Investors take advantage of bank information to develop
expectations concerning future performance that can used to help price
common shares. Secondly, bank management traditionally is evaluated
on the basis of how well the bank performs relative to previous years and
compared with similar banks. Employees’ salaries and promotions are
frequently tied to the performance of the bank. Bankers also need to be
informed about the condition of other banks with which they have business
dealings. Loan purchases and particularly from poorly managed
institutions may be suspect; federal funds sold and repurchase agreements
with other banks require that some knowledge of their performance be
obtained to prevent loss of funds in the event of their failure and
subsequent closure by regulatory authorities. Thirdly, regulators
concerned about the safety and soundness of the banking system and the
preservation of public confidence, monitor banks using on-site
examinations computer-based “early warning system” to keep track of
bank performance. Fourthly, depositors may be interested in how well the
bank is doing. Fifthly, and lastly, the business community and general
public should be concerned about their banks performance to the success
or failure of the bank.
4
Table of Contents
Table of Contents...................................................................................................5
Methodology:......................................................................................................... 7
Company Profile:....................................................................................................8
Vision:................................................................................................................. 8
Mission:............................................................................................................... 8
Values:................................................................................................................ 9
Performance Evaluation:......................................................................................10
Bank Planning:..................................................................................................10
Objectives of EBL:..........................................................................................10
Strategic priority of EBL:................................................................................10
Technology:...................................................................................................... 11
Success story:............................................................................................... 12
EBL with new ICT Infrastructure features:.....................................................12
Benefits from Changes:.................................................................................13
Personal Development:.....................................................................................14
Employee Benefits:........................................................................................14
Education Programs:.....................................................................................16
Bank Profitability:.............................................................................................18
Conclusion:.......................................................................................................... 28
5
Objective:
Evaluate internal performance of the EBL.
Help the community grow so that they may grow with it.
6
Methodology:
7
Company Profile:
Vision:
Mission:
8
We will constantly challenge our systems, procedures
and training to maintain a cohesive and professional
team in order to achieve service excellence.
Values:
Openness
Trust
Commitment
Integrity
Service excellence
9
Performance Evaluation:
Bank Planning:
Objectives of EBL:
10
Increase off-balance sheet business through product
innovation.
Technology:
11
these MNC banks. So, for obvious reasons privates started
losing businesses to these MNC banks.
Success story
EBL with new ICT infrastructure features
Benefits from changes
Success story:
12
Here is a breakdown of what the data communication
infrastructure looks like today:
Personal Development:
Commercial banks require a highly skilled labor force, it is
essential that attention be focused on personal
development. Human resources play a critical role in the
achievement of bank goals and objectives. Banks must
provide opportunities for the continuous training of their
employees in the latest banking operations and techniques,
and must provide means for their employees to keep up
with the changes in bank regulations.
Employee Benefits:
14
• Delta Dental insurance
• Eye Med Vision Care insurance
• Vision and hearing aid reimbursements
• Flexible spending accounts – medical, dependent care,
adoption, insurance premiums
• Use on-site fitness center in Lynn
Personal Protection
Available at no cost, these benefits provide additional
financial security to employees and their families for events
that impact their lives and physical well-being.
Financial Future
They provide a blend of retirement benefits, including a)
401(k) plan that lets you make contributions, as well as a
non-contributory pension plan for tax-advantaged wealth
accumulation.
Work/Life Program
Their program assists employees with personal and/or work
situations.
Education
They provide financial support to employees to increase
their knowledge and skills, and enhance their job
15
performance and career development.
Time Off
They offer paid time off to focus on non-work interests and
obligations as well as to relax.
• Vacation
• Holidays
• Personal days
Other Benefits
Education Programs:
FDIC Alliance
FDIC News
FDIC Guides
FDIC Alliance
16
As a member of the FDIC Money Smart Alliance, they
support financial literacy – the ability to save, budget,
spend wisely and invest – in the communities they serve.
Certified Instructors
Eastern has a team of over 50 employees that have
attended training programs and are certified to teach all 10
of the banking modules. Eastern Bank will send instructors
to your organization or school to present one or more of
the Money Smart courses. Classes are available in both
English and Spanish.
17
find Money Smart trainers in your community.
FDIC News
FDIC Guides
Bank Profitability:
Like all businesses, banks profit by earning more money
than what they pay in expenses. The major portion of a
bank's profit comes from the fees that it charges for its
services and the interest that it earns on its assets. Its
major expense is the interest paid on its liabilities.
18
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 deposits and the
money that it borrows, either from other banks or by selling
commercial paper in the money market.
19
Asset 4,469 3,110 5,504 5,983 3,103
Operati
ng 1,591,610, 2,110,747 2,820,667 3,701,632 4,617,633
revenu 252 ,329 ,205 ,829 ,138
e
Total
2,075,412, 2,829,332 3,808,903 5,224,413 6,186,163
Interest
522 ,632 ,036 ,145 ,190
Income
Total
Interest 1,365,455, 2,160,078 2,498,068 3,675,380 4,032,711
Expens 642 ,142 ,117 ,751 ,612
e
Averag
e
13,602,75 17,768,02 21,062,04 26,962,55 33,924,41
Earning
5,449.5 6,879 8,945 5,829 7,402
Asset
Provisio
n for 88,425,74 223,369,2 584,394,0 452,686,0 262,511,3
Loan 2 58 08 73 22
Losses
Total
17,757,59 25,973,98 30,895,70 39,427,38 46,129,52
Loans &
8,566 1,280 6,294 3,891 2,083
Leases
Net 17,174,52 25,046,61 30,194,17 38,632,08 45,277,52
Loan 8,536 9,296 1,436 3,300 1,185
Treasur 4,560,000, 3,680,000 1,170,000
- -
y Bill 000 ,000 ,000
Investm
2,962,734 1,298,180 440,079,5 278,305,6
ent ≤ 1 -
,773 ,168 20 75
year
Due 745,258,4 927,301,7 1,540,351 3,406,323 6,777,216
from 50 29 ,987 ,925 ,553
Other
20
Bank
No. of
10,350,00 13,869,00 24,964,20
Shares 8,280,000 8,280,000
0 0 0
Issue
Propose
d 331,200,0 372,600,0 351,900,0
- -
Dividen 00 00 00
d
Market
price of
1222.75 792.50 1070.75 589.30 644.25
per
Share
Now,
21
ROA (Return on Asset):
Profit Margin:
Asset Utilization:
22
Year 2005 2006 2007 2008 2009
Total 27,399,954, 35,934,833, 42,507,025, 54,351,795, 68,330,333,
Asset 469 110 504 983 103
Total
Interes
1,365,455,64 2,160,078,1 2,498,068,1 3,675,380,7 4,032,711,6
t
2 42 17 51 12
Expen
se
Avera 13,602,755,4
23
ge 17,768,026, 21,062,048, 26,962,555, 33,924,417,
Earnin 879 945 829 402
49.5
g
Asset
Net
Interes
t 0.052 0.038 0.062 0.057 0.063
Margin
Loan Ratio:
24
536 296 436 300 185
EBL use their asset against loan very well like more than
50%. So, it is the good sign to EBL. But in 2009 it
decreases. So, EBL must have to concentrate on this &
solve the problem.
Temporary
Investment Ratio= (Treasury bill + Investment ≤ 1year +
Due from other Bank) ÷ Total Asset
Tempora
ry 0.19 0.21 0.094 0.071 0.1
Investm
ent Ratio
Temporary invest ratio of EBL in 2009 is running low. EBL
must have to keep concentrate on it.
25
Year 2005 2006 2007 2008 2009
Net 546,515,02 798,353,19 1,458,991,9
513,233,680 418,648,150
Income 8 7 32
No. of
Shares 8,280,000 8,280,000 10,350,000 13,869,000 24,964,200
Issue
EPS 66 61.98 40.50 57.56 58.44
EPS of EBL 2005 & 2006 is good but in 2007 it is too much
lower. In 2008 EBL make over the problem for EPS is
increasing & also keep it in 2009.
No. of
Shares 8,280,000 8,280,000 10,350,000 13,869,000 24,964,200
Issue
DPS 40 45 34 - -
26
Year 2005 2006 2007 2008 2009
Market
Price of 1222.75 792.50 1070.75 589.30 644.25
per Share
Annual
Earnings
per Share 66 61.98 40.50 57.56 58.44
(EPS)
P/E (Price
Earning) 18.53 12.79 26.44 10.24 11.02
Ratio
27
Conclusion:
28