An Overview of

The Income Statement and Balance Sheet of

Bank Asia Limited and AB Bank Limited

Department of Finance & Banking, JU

Bank Financial Management

Group Profile
Our Group

Department of Finance & Banking, JU

Bank Financial Management

Reporting Requirements of Financial Statements

Reporting Requirements in Bangladesh
First Schedule (Section 38) of the Banking Companies Act
1991 as amended by BRPD circular no. 14

Solo basis and consolidated basis

Previous years data shown alongside present years

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Balance Sheet

Balance Sheet -1
Two main segments
<Name of the Bank>
Balance Sheet
At 31 December <Curr. Year>
Amount in Taka
At
At
Notes 31 Dec <Curr. Year> 31 Dec <Prev. Year>
PROPERTY AND ASSETS
Cash
In hand (including foreign currencies)
Balance with Bangladesh Bank and it's agent bank
(including foreign currencies)

00.00
00.00
00.00

00.00
00.00
00.00

Balance with other banks and financial institutions

In Bangladesh
Outside Bangladesh

00.00
00.00
00.00

00.00
00.00
00.00

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Balance Sheet

Balance Sheet -2
Money at call and short notice

00.00

00.00

Investments
Government
Others

00.00
00.00
00.00

00.00
00.00
00.00

Loan and advancements

Loans, cash credits, overdrafts
Bills purchased and discounted

00.00
00.00
00.00

00.00
00.00
00.00

Fixed assets
Other assets
Non-banking assets
Total Assets

00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Balance Sheet

Balance Sheet -3
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents

00.00

00.00

Deposits and other accounts

Current/ Al-wadeah current accounts and other accounts
Bills payable
Savings bank/ Mudaraba savings bank deposits
Fixed deposits/ Mudaraba fixed deposits
Bearer certificates of deposit
Other deposits

00.00
00.00
00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00
00.00
00.00

Other liabilities

00.00

00.00

Total liabilities

00.00

00.00

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Balance Sheet

Balance Sheet -4
Capital/ shareholders' equity
Total shareholders' equity
Paid-up capital
Share premium
Statutory reserve
Revaluation reserve
Exchange equalization reserve
Other reserves
Retained earnings

00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00

Total liabilities and Shareholders' equity

00.00

00.00

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Balance Sheet

Off-balance Sheet Disclosure
Amount in Taka

At
Notes 31 Dec <Curr. Year>

At
31 Dec <Prev. Year>

Contingent Liabilities
Acceptances and endorsements
Letters of guarantee
Irrecoverable letters of credit
Bills for collection
Other contingent liabilities

00.00
00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00
00.00

Other commitments
Documentary credits and short term trade-related transactions
Forward assets purchased and forward deposits placed
Undrawn formal standby facilities, credit lines and other commitments

00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00

Total

00.00

00.00

OFF-BALANCE SHEET ITEMS

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Income Statement

Profit and loss statement
Eight segments
<Name of the Bank>
Profit and Loss Statement
For the year ended 31 December <Curr. Year>
Amount in Taka
At
At
Notes 31 Dec <Curr. Year> 31 Dec <Prev. Year>
OPERATING INCOME
Interest income
interest paid on deposits and
borrowings
Net interest income
Investment income
Commission, exchange and
brokerage
Other operating income
Total operating income (A)

Department of Finance & Banking, JU

00.00

00.00

(00.00)

(00.00)

00.00

00.00

00.00

00.00

00.00

00.00

00.00
00.00
00.00

00.00
00.00
00.00

Bank Financial Management

Standard format of Income Statement

Profit and loss statement -2
OPERATING EXPENSES
Salaries and allowances
Rent, taxes, insurance, electricity, etc.
Legal expenses
Postage, stamp, telecommunication, etc.
Stationary, printing, advertisements, etc.
Chief executive/ Managing director's salary and fees
Directors' fees
Auditors' fees
Depreciation and repairs of Bank's assets
Other expenses
Total operating expenses (B)

00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00
00.00

Profit before provision (C=A-B)

00.00

00.00

Department of Finance & Banking, JU

Bank Financial Management

Standard format of Income Statement

Profit and loss statement -3
General provision
Specific provision
Provision for off-balance sheet items
Provision for diminution in value of investments
Other provisions
Total provision (D)

00.00
00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00
00.00

Profit before tax (C-D)

Provision for taxation
Current tax
Deferred tax
Net profit after tax

00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00

00.00
00.00
00.00
00.00
00.00

Appropriations
Statutory reserve
General reserve
Retained surplus
Earnings per share (EPS)

Department of Finance & Banking, JU

Bank Financial Management

Balance Sheet Analysis

Balance Sheet Analysis
Average of three years data namely 2011-2013 as reference

Composition of Assets
Capital Structure
Composition of Liabilities

Department of Finance & Banking, JU

Bank Financial Management

Balance Sheet Analysis

Composition of Assets
Bank Asia Ltd.

3.41%

5.25% 5.53%

1.59%
0.16%

2.29%

17.78%

66.39%

Department of Finance & Banking, JU

AB Bank Ltd.
8.49%
5.67%

4.54%
1.00%

14.28%

63.73%

Cash
Balance with other banks and financial institutions
Money at call and short notice
Investments
Loan and advances
Fixed assets
Bank Financial Management
Other assets

Balance Sheet Analysis

Capital Structure
Bank Asia Ltd.

AB Bank Ltd
9.52%

8.94%

91.06%

90.48%

Total shareholders' equity

Department of Finance & Banking, JU

Total liabilities

Bank Financial Management

Balance Sheet Analysis

Composition of Liabilities
Bank Asia Ltd.

AB Bank Ltd.
8.26%
1.40%
3.22%

8.43%
4.47%
0.00%

78.16%

80.28%

Borowings from other banks, financial institutions and agents

Subordinateed non-convertible zero coupon bonds
Deposits and other accounts
Other liabilities

Department of Finance & Banking, JU

Bank Financial Management

Income Statement Analysis

Income Statement Analysis
Average of three years data namely 2011-2013 as reference

Income generation
Efficiency Measurement

Department of Finance & Banking, JU

Bank Financial Management

Income Statement Analysis

Revenue generation
Bank Asia Ltd.

AB Bank Ltd

26.35%
34.57%

65.43%
73.65%
Total interest income

Department of Finance & Banking, JU

Total non-interest income

Bank Financial Management

Income Statement Analysis

Efficiency Measurement
=
2.50%
2.00%

2.24%

1.58%

1.50%
1.00%

0.50%
0.00%
Bank Asia

Department of Finance & Banking, JU

AB Bank

Bank Financial Management

Income Statement Analysis

Efficiency Measurement -2
=

12.00%

10.67%

10.00%
7.90%

8.00%
6.00%
4.00%
2.00%
0.00%

Bank Asia
Department of Finance & Banking, JU

AB Bank
Bank Financial Management

Thank You!

Department of Finance & Banking, JU

Bank Financial Management