Thesis Report

on
Financial Performance Evaluation of Dutch Bangla Bank
Limited.

Submitted To
Kartik Chandra Mondal
Assistant Professor
Faculty of Business
ASA University Bangladesh.

Submitted By
Mohammad Ripon Mia
ID: 14-1-12-0027
Program: BBA
Major in Accounting
Faculty of Business
ASA University Bangladesh

Date of Submission: 7th April, 2018

To
Kartik Chandra Mondal
Assistant Professor
Faculty of Business
ASA University Bangladesh.
Subject: Submission of Thesis Report on Financial Performance Evaluation of Dutch
Bangla Bank Limited.

Dear Sir,
It is my great pleasure to submit you my thesis report Financial Performance Evaluation
of Dutch Bangla Bank Limited. I have tried my best to complete this report properly
following the guidelines provided by you and concerned organization.

I have confidence that the thesis report has increased both of my practical experience and
theoretical knowledge to a great extent. I will be obliged to answer any query that many
arise during the evaluation of the report. So, I am fervently requesting and hope that you
would be kind enough to accept my report and oblige thereby.

Sincerely Yours,

-----------------------------
Mohammad Ripon Mia
ID: 14-1-12-0027
Program: BBA
Major in Accounting
Faculty of Business
ASA University Bangladesh

i
 Student’s Declaration

I, hereby declare that, I have completed this thesis report only for educational purpose, not
for any income purpose. I gathered all information from the secondary source and also
directly communicated with employees of this company. That’s why if occurred any
mistake in this thesis report then its liability always for me. Information derived from the
published and unpublished work of others has been acknowledged in the text and
references are given in the list of sources.

………………………….

Mohammad Ripon Mia

ii
 Supervisor’s Certificate

This is to certify that Mohammad Ripon Mia, ID: 14-1-12-0027, Program: BBA, Major
in Accounting, Faculty of Business, ASA University Bangladesh has completed the thesis
work on Financial Performance Evaluation of Dutch Bangla Bank Limited successfully
under my supervision.

I have gone through the final draft of the project and approved it for submission.

I wish him every success in life.

---------------------------

Kartik Chandra Mondal

iii
 Acknowledgement
From the core of my heart I would like to convey my earnest admiration, loyalty and
reverence to the almighty God, the most merciful, for keeping everything in order and
enabling me to complete this project work successfully.

First let me express my thanks to my research supervisor Kartik Chandra Mondal, Assistant
Professor, Faculty of Business, ASA University Bangladesh. He gives me my first
introduction to the world about financial Market. It would be impossible for me to finish
this research without his direction and encouragement. It has been a pleasure to have
worked with him. His support supervision and assistance will always be greatly
appreciated.

I am thankful and grateful to all the employees of Dutch Bangla Bank Ltd. I also recalls
with gratitude, the patience they showed during my frequent interruptions in their regular
jobs for answering my various queries.

I also express my profound gratitude to all other teachers for their kind help and valuable
suggestion. I also thank ASA University Bangladesh and generally thank to the office staff
for their collaboration.

Finally, I stretch out my heartiest love to my beloved mother, father, sister and brother
during the progress of the project work Report for their direct and indirect co-operation
without which this study would be impossible.

iv
 Executive Summary

This thesis is a mainly a Financial Performance Evaluation of Dutch Bangla Bank Limited.
At first, I have tried to evaluate individual performance of bank over the last five years
starting from 2013 to 2017. Ratios of different types are calculated based annual reports
information by using MS Excel and then plotted the results on graphs and interpreted for
the readers. Than comparative analysis of financial indicators is done to evaluate which
bank performs better under respective indicator performance evaluation analysis of DBBL
major priority in this report. Commercial banks are the service of financial ratio with profit
oriented financial institution. Commercial banks are the service of financial ratio with profit
oriented financial institution. It gains profit through successful efficient management, it has
become clear that performance evaluation analysis of DBBL instituted a contemporary ratio
analysis. From the study, it is evident that the bank is quite sincere in their approach to
performance though there are rooms for improvement. They have to be more cautious in
the recovery sector and preferential treatments to some big clients should also be stopped.
However, they follow an in-depth procedure in assessing using the techniques which
provides them a solid ground in the time of analysis Ratios are calculated to make the
analysis more distinct and figurative. It gains profit through successful efficient
management, it has become clear that financial performance evaluation analysis of DBBL
instituted a contemporary ratio analysis. From the study, it is evident that the bank is quite
sincere in their approach to performance though there are rooms for improvement. They
have to be more cautious in the recovery sector and preferential treatments to some big
clients should also be stopped. However, they follow an in-depth procedure in assessing
using the techniques which provides them a solid ground in the time of analysis Ratios are
calculated to make the analysis more distinct and figurative. Variability analysis was done
and it shows is a financial strong the DBBL. The report will give and overall idea about the
performance evaluation analysis of commercial banks.

v
 Table of Contents
Title Page no.
Letter of Transmittal i
Student’s Declaration ii
Supervisor’s Certificate iii
Acknowledgement iv
Executive Summary v
CHAPTER-1- INTRODUCTION 1-4
1.1 Introduction 02
1.2 Background of the Study 02
1.3 Objectives of the Study 03
1.3.1 General Objective 03
1.3.2 Specific Objective 03
1.4 Scope of the Study 03
1.5 Limitations of the study 04
CHAPTER-2-Methodology of The Study 5-7
2.1 Methodology of the Study 06
2.1.1 Research Type 06
2.1.2 Sources of Data 06
2.2 Data Collection Procedure 06
2.2.1 Sampling Plan 07
2.2.1.2 Target population 07
2.2.1.3 Sample Size: 1 banks 07
2.2.1.4 Sampling Method 07
2.2.1.5 Sample Frame 07
2.3 Data Analysis & Reporting 07
CHAPTER-3- Literature Review 8-12
3.1 Literature Review 09
CHAPTER-4 - Performance Evaluation and Theoretical 13-20
Background of Financial Performance Analysis
4.1 Theoretical Background of Financial Performance Analysis 14
4.1.1 Performance Appraisal 14
4.1.2 Income Statement 14
4.1.3 Balance sheet 14
4.1.4 Cash flow statement 14
4.1.5 Statement of Owners Equity 15
4.2 Ratio Analysis 15
4.3 Types of financial ratios 15
4.3.1 Liquidity Ratio 15
4.3.2 Profitability ratios 17
4.3.3 Activity ratios 18
4.3.4 Leverage ratios 19
CHAPTER 5- Company At Glance 21-30
5.1 Dutch Bangla Bank Limited. 22
5.1.1 Brief-History 22
5.1.2 Mission 22
5.1.3 Vision 23
5.1.4 Objectives of DBBL 23
5.1.5 Organization Structure 24
5.1.6 Functions in Brief DBBL 25
5.1.7 Financial Highlights DBBL 28
CHAPTER: 6- Analysis and Discussion 31-47
6.0 Data Analysis 32
6.1 The process of data analysis 32
6. 2 Data Analysis and Interpretation of the Data 33
6.2.1 Ratio Analysis 33
6.2.2 Bank Characteristics: 33
6.2.3 Net Interest Margin: 33
6.1.4 Net Profit/Total Asset: 35
6.1.5 Equity/Total Asset: 36
6.1.6 Loan/Total Asset: 37
6.1.7 Operating expense/Total Asset Ratio: 38
6.2 Asset Quality: 39
6.2.1 Loan Loss Reserve/Gross loan: 39
6.3 Capital Adequacy: 40
6.3.1 Capital Adequacy Ratio: 40
6.3.2 Equity/total asset: 41
6.3.3 Cap Funds/Total Asset: 42
6.3.4 Cap Fund/Liabilities: 43
6.4 Operation Ratio: 44
6.4.1 Other operating Income/Average Asset: 44
6.4.3 ROAA: 45
6.4.4 ROAE: 46
6.4.5 ROI 47
CHAPTER: 7- Findings 48-49
7.1 Findings of the study 49
CHAPTER: 8- Recommendation & Conclusion 50-51
8.1 Recommendations 51
8.2 Conclusion 51
Bibliography 52

APPENDIX