Letter of Transmittal

Date: 1st August, 2017

Md. Sahidul Islam
Assistant Professor
Department of Banking & Insurance
University of Dhaka

Subject: Submission of Term paper.

Dear Sir,

With due respect and great pleasure we are submitting our Term paper on “A comparative
analysis of Dutch-Bangla Bank and South East Bank based on profitability and leverage
analysis”. This has assigned by us as a part of this course. This report has provided us with
theoretical and practical knowledge about profitability.

We believe that this report has enriched both my knowledge and experience.

Sincerely yours
…………………

NAME Id no.
Sadia Afsana asha
Samsun Naher 51633039
Md. Mohsin 51633040
Parisa Tabassum 51633044
Sanpa Basu Majumder 51633050
Asrafull Hoque Asif 51532030

Batch: 33rd and 32nd

Program: MBA (evening)
Department of Banking & Insurance
University of Dhaka
 Acknowledgement

“It is not possible to prepare a report without the assistance & encouragement of other people.
This one is certainly no exception.” On the very outset of this report, we would like to extend our
sincere & heartfelt obligation towards all the personages who have helped us in this endeavor.
Without their active guidance, help, cooperation & encouragement, we would not have made the
report.

We are ineffably indebted to for conscientious guidance and encouragement to accomplish this
assignment.

We are extremely thankful Md. Sahidul Islam and pay our gratitude to Md. Sahidul Islam who is
our honorable faculty for his valuable guidance and support on completion of this report in it’s
presently.

We extend our gratitude to University Of Dhaka for giving me this opportunity.

We also acknowledge with a deep sense of reverence, we gratitude towards our parents and
member of our family, who has always supported us morally as well as economically.

At last but not least gratitude goes to all of our friends who directly or indirectly helped us to
complete this report. Any omission in this brief acknowledgement does not mean lack of
gratitude.

Thanking You

NAME Idno
Sadia Afsana asha
Samsun Naher 51633039
Md. Mohsin 51633040
Parisa Tabassum 51633044
Sanpa Basu Majumder 51633050
Asrafull Hoque Asif 51532030

Batch: 33rd
Program: MBA (evening)
Department of Banking & Insurance
University of Dhaka
 EXECUTIVE SUMMARY

This report focuses about the activities done in the profitability and leverage ratio of Dutch
Bangla Bank and South East Bank . We have experienced in the performance in this sector.

Profitability represents one of the most important segment in a bank of Bangladesh and plays a
very important role in mobilizing and channeling fund. On the other hand . A leverage ratio is
any one of several financial measurements that look at how much capital comes in the form of
debt (loans), or assesses the ability of a company to meet financial obligations. It provides an
indication of how much assets are coming from loans to finance business operation.

In this report we tried to show Organizational overview. Profitability ratio of this two banks at
the same time leverage ratio of two banks.

Then we have showed Calculation of operating efficiency ratio, Return on Assets, Return on
Equity, Employee productivity ratio, Earning per share, Non Performing Loan, Total Asset,
Total Liability, Total Loan & Advances.

And also we have showed Debt to equity ratio, Debt to asset ratio and Debt to EBITDA ratio.

After that we have prepared SWOT analysis of South-East Bank and Dutch-Bangla bank.

After that Findings and suggestions are prepared.

Sixthly of this report is Conclusion & Bibliography.

Table of contents
 Part-A
Introduction

Profitability ratios are a class of financial metrics that are used to assess a business's
ability to generate earnings compared to its expenses and other relevant costs incurred
during a specific period of time. For most of these ratios, having a higher value relative
to a competitor's ratio or relative to the same ratio from a previous period indicates that
the company is doing well.

Profitability ratios are a class of financial metrics that are used to assess a business's
ability to generate earnings compared to its expenses and other relevant costs incurred
during a specific period of time. For most of these ratios, having a higher value relative
to a competitor's ratio or relative to the same ratio from a previous period indicates that
the company is doing well.

Some industries experience seasonality in their operations. The retail industry, for
example, typically experiences higher revenues and earnings for the Christmas season.
It would not be useful to compare a retailer's fourth-quarter profit margin with its first-
quarter profit margin. Comparing a retailer's fourth-quarter profit margin with the
profit margin from the same period a year before would be far more informative.

A leverage ratio is any one of several financial measurements that look at how much
capital comes in the form of debt (loans), or assesses the ability of a company to meet
financial obligations. It provides an indication of how much assets are coming from
loans to finance business operations

A leverage ratio may also refer to one used to measure a company's mix of operating
costs, giving an idea of how changes in output will affect operating income. Fixed and
variable costs are the two types of operating costs; depending on the company and the
industry, the mix will differ.

Finally, the consumer leverage ratio refers to the level of consumer debt as compared to
disposable income and is used in economic analysis and by policymakers
Background of the Study

This report was done as a part of the requirement for successful completion of this course.
Exposure to the business world and acquiring practical knowledge was the primary objective of
this assignment. The topic of this report is title “A comprehensive analysis between Dutch
Bangla Bank and South East Bank based on Profitability”.

Objectives of the Study

The main objectives of this study is to familiarize with the concepts of profitability, internal and
external risk factors, guidelines and techniques used by the Dutch Bangla Bank & Southeast
Bank for identification, measurement and management of their financial performance in various
portfolio.

Limitations of the Study

If there are some advantages of any work at the same time there will be some difficulties of that
work also. But with these limitations people become successful, they achieve their desire goals.
There are so many examples of that. So, no excuse should be given to hide the weaknesses of
any given job. But if there is hard work and full efforts behind it then people appreciate the
whole work no body search the flaws. There are some limitations of this report. But these
limitations represent only the facts that really hampered the quality of report. As this report
focuses on profitability analysis of DBBL& SBL. Publications of these two banks were not
sufficient to collect the needed information. But they provided the required annual reports of the
bank. But the information was not sufficient. Because of the limitation of time it was not possible
to collect data directly from the particular bank.
Part-B
Overview of Dutch Bangla Bank
Dutch Bangla Bank Limited (the Bank, DBBL) is a scheduled joint venture commercial bank
between local Bangladeshi parties spearheaded by M Sahabuddin Ahmed (Founder & Chairman)
and the Dutch company FMO. DBBL was established under the Bank Companies Act 1991 and
incorporated as a public limited company under the Companies Act 1994 in Bangladesh with the
primary objective to carry on all kinds of banking business in Bangladesh. The Bank is listed
with the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited.
DBBL commenced formal operation from June 3, 1996. The head office of the Bank is located at
Sena Kalyan Bhaban (4th floor),195, Motijheel C/A, Dhaka, Bangladesh.
The bank is often colloquially referred to as “DBBL”, “Dutch Bangla” and “Dutch Bangla
Bank”. After instability and frequent management changes in its initial years, DBBL overcame
these obstacles to establish itself as a market leader. It has grown its reputation through social
work rather than profits. The bank’s conservative nature, long-term strategies, social donations
and technology investments have always led to modest but steady profits.
Due to investor confidence, DBBL share prices has steadily climbed in value. In January 2008,
DBBL share prices reached Tk. 9,450 .00 in the Dhaka Stock Exchange, setting the record for
the highest stock price in the history of Bangladesh. It is also one of the few banks that does not
participate in merchant banking (which can lead to sporadic growth). DBBL has branded itself.
Dutch Bangla Bank is the first and only local bank in Bangladesh to have an automated banking
system. The bank has spent over Tk. 1 Billion in automation upgrades (first bank in Bangladesh
to do so). This automation took place in 2003 whereby services of the bank were available
uniformly though any branch, ATM and internet. Banking was a paper based until DBBL, with
its wide local network, delivered banking automation and modern banking services to the
masses. This effectively introduced the ‘plastic money’ concept into the Bangladeshi society.

MISSION
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. “Profits alone” do not hold a central focus in the
Bank’s operation; because “man does not live by bread and butter alone”.

VISION
Dutch-Bangla Bank dreams of better Bangladesh, where arts and letters, sports and
athletics, music and entertainment, science and education, health and hygiene, clean
and pollution free environment and above all a society based on morality and ethics
make all our lives worth living. DBBL’s essence and ethos rest on a cosmos of creativity
and the marvel-magic of a charmed life that abounds with spirit of life and adventures
that contributes towards human development.
 Overview of South East Bank
The emergence of Southeast Bank Limited (SBL) was at the juncture of liberalization of
global economic activities. The experience of the prosperous economies of the Asian
countries and in particular of South Asia has been the driving force and the strategic
operational policy option of the Bank. The company philosophy – “A Bank with Vision”
has been precisely an essence of the legend of success in the Asian countries.Southeast
Bank Limited, “A Bank with a Vision”, emerged as a 2nd Generation Commercial
Banking Industry of Bangladesh in the year 1995. It was incorporated on March 12, 1995
as a public limited company according to the Companies Act 1994. The commencement
of its banking business occurred on May 25, 1995 by the Principal Branch located at the
Annex Building, 1 Dilkusha Commercial Area, Motijheel, Dhaka. The Head Office of the
Bank is also located at the same address on the 3rd floor of Annex Building.The Bank
started with an authorized capital of Tk. 500 million and paid up capital of Tk. 100
million. Southeast Bank Limited started its business with the inaugural Chairman Mr.
Mohammad Abul Kashem, Vice Chairman Mr. Ragib Ali and the first and former
President and Managing Director of the Bank Mr. Syed Anisul Haq.Southeast Bank
Limited is a scheduled commercial bank in the private sector, which is focused on the
established and emerging markets of Bangladesh. Southeast Bank Limited has 21
branches throughout Bangladesh and its aim is to be the leading bank in the country’s
principal markets. The branches are situated in the prime business locations of
Bangladesh. Among the 21 branches, 10 branches are in the capital city Dhaka, 4 in the
port city Chittagong, 3 in Sylhet, 1 in Khulna, 1 in Moulvibazar. The other 2 branches
are opened in 2003 and with Islami banking concept which are operating in Feni and
Cox’s Bazar. The bank by concentrating on the activities in its area of specialization has
achieved good market reputation with efficient customer service. The Bank is
committed to providing continuous training to its staff to keep them up to date with
modern practices in their respective fields of work. The Bank also tries to fulfill its share
in community responsibilities. By such measures, the Bank intends to grow and
increase shareholders’ earning per share. Southeast Bank Limited pledges to maximize
customer satisfaction through services and build a trusting relationship with customers,
which has stood the test of time for the last eight years.

VISION:

To stand out as a pioneer banking institution in Bangladesh and contribute significantly to the
national economy.
MISSION:

The missions of Southeast Bank Limited are as follows.

 High quality financial services with the help of latest technology.

 Fast and accurate customer service.
 Balanced growth strategy.
 High standard business ethics.
 Steady return on shareholder’s equity.
 Innovative banking at a competitive price.

Total Operating Income:

Operating income is measure of profitability that tells investors how much revenue will
eventually become profit for a company. Operating income also called Earnings Before Interest
and Taxes (EBIT). It is important to understand what expenses are included and excluded when
calculating operating income. Total Operating Income consists of interest income, interest form
investment, commission.

Total Operating Income (Million)

2016 2015 2014 2013 2012
DBBL 15931 15608.8 13868.8 12697.9 909.5
SBL 15771.9 11368.3 12109.7 10412.9 9179.8
l Operating Incom
 18000
15931
15771.9 15608.8
16000
13868.8
14000
12697.9
12109.7
12000 11368.3
10412.9
10000 9179.8
DBBL
8000 SBL

6000

4000

2000 909.5

0
2016 2015 2014 2013 2012

The total operating Income of DBBL is higher than theSBL bank in every year but in 2016
DBBL & SBL are equal. The highest total operating income of SBL has seen in the year of 2016
on the other hand DBBL face lower total operating income in 2012. The operating income can be
higher if the management of the bank manage it properly which result more interest income,
investment income, commission etc.

Total Operating Expenses:

Operating expenses are those expenses that a business incurs to engage in any activities not
directly associated with the production of goods or services. Operating expenses include Salaries
and Allowances, rent, Taxes, Insurance, Electricity, Depreciation, Audit fee etc. One of the
typical responsibilities that management must contend with is determining how low operating
expenses can be reduced without significantly affecting a firm's ability to compete with its
competitors.

Total Operating Expenses

2016 2015 2014 2013 2012
DBBl 10409.2 9174.9 8544.4 8114.3 43010.6
SBL 15771.9 11368.3 12109.7 10412.9 9179.8
 43010.6
45000

40000

35000

30000

25000 DBBL

20000 SBL
15771.9
15000 11368.3 12109.7
10409.2
9174.9 8544.4 8114.3 9179.8
10000

5000 1041.9
0
2016 2015 2014 2013 2012

Here we can see that, the operating Expense of SBL is higher than the DBBL bank ltd. in
2015,2014 and 2016 but others year DBBL operating expense is higher tham SBBL. The
operating expense reduces the Net profit after tax of the bank. From this chart it is clearly
understand that SBL operating expense is more than the DBBL.

Total assets:

Assets are defined as anything that a business owns, has value and can be converted to cash.
These two categories are current assets and noncurrent assets. The basic accounting equation
states that assets = liabilities + stockholders' equity.

Total Asset
2016 2015 2014 2013 2012
DBBL 276844.4 244057.6 215993.5 185537.4 155918.6
SBL 291798.01 260718.03 236608.40 220930.85 191276.30
 291798.01
300000 276844.4 260718.03
244057.6 236608.4
250000 220930.85
215993.5
200000 191276.3
185537.4
150000 155918.6 DBBL
100000
SBL
50000
0
SBL
2016
2015 DBBL
2014
2013
2012

Here the bar chart represents the total asset of DBBL and SBL. From the graphical representation
it can be said that from the last 5 years the total asset of SBL is more than DBBL. The highest
asset has seen in 2016 SBL and the lowest Asset have found in 2012 DBBL. Excessive asset is
not efficient if it is not proper utilized. The total asset growth of sBL is increasing over the year.

Total Equity Capital:

The total equity capital is the Invested money that, in contrast to debt capital, is not repaid to the
investors in the normal course of business. It represents the risk capital staked by the owners
through purchase of a company's common stock (ordinary shares). The value of equity capital is
computed by estimating the current market value of everything owned by the company from
which the total of all liabilities is subtracted. On the balance sheet of the company, equity capital
is listed as stockholders' equity or owners' equity, also called equity financing or share capital.

Total Equity Capital

2016 2015 2014 2013 2012
DBBL 11579010000 10225590000 8576380000 7424450000 6346650000
SBL 9512050000 8128690000 6865780000 6512890000 5526760000
 5526760000
2012 6346650000

6512890000
2013 7424450000

6865780000 SBL
2014 8576380000
DBBL

8128690000
2015 10225590000

9512050000
2016 11579010000

0 5E+09 1E+10 1.5E+10

From the Total equity graph, it can be said that the amount of equity capital of DBBL growth is
increasing rate from the year of 2012 to 2016. Similar situation is happen for SBL.

TotalDeposit:

Total Deposit
2016 2015 2014 2013 2012
DBBL 207234.0 186765 166762.3 145230 125433.1
SBL 291798.01 210431.09 189472.52 177519.46 152901.24

In 2012 Both banks have taken highest amounts of Deposits. From this we can understand
customers are increasing and company growth also increasing.
 250000

207234 210431.09
200000 186765 189472.52
177519.46
166762
152901.24
150000
125433.1
DBBL
SBL
100000

50000

14523
2.4
0
2016 2015 2014 2013 2012

Total Loan and Advances

2016 2015 2014 2013 2012
DBBL 173397.8 152270 124423 106422.8 91648.9
SEBL 191865.59 168878.46 147070.81 134863.82 126968.97

In 2016 Both DBBL and SEBL has more loans and advances than other years. And in 2012 the
amounts of loans and advances are lowest.
 2012

2013

SBL
2014
DBBL

2015

2016

0 50000 100000 150000 200000

Total NPL:

is listed as stockholders' equity or owners' equity, also called equity financing or share capital.

Total NPL
2016 2015 2014 2013 2012
DBBL 8999 5624.9 5475.3 4175.6 2728.4
 SBL 9257.79 7193.82 5387.74 5350.24 5687.92

10000

8000

6000

4000 DBBL
SBL
2000

0
SBL
2016
2015 DBBL
2014
2013
2012

Total Authorized Capital

The authorized capital of a company (sometimes referred to as the authorized share capital,
registered capital or nominal capital, particularly in the United States) is the maximum amount
of share capital that the company is authorized by its constitutional documents to issue
(allocate) to shareholders.

SEBL 2016 2015 2014 2013 2012

Authorized 15000 15000 15000 10000 10000
Capital
DBBL 2016 2015 2014 2013 2012
Authorized 4000.0 4000.0 4000.0 4000.0 4000.0
capital
Total Income

The sum of all money received by an individual or organization, including income from
employment or providing services, revenue from sales, payments from pension plans, income
from dividends, or other sources.

DBBL 2016 2015 2014 2013 2012

Total income 21613.3 21849.0 20741.8 20050.6 18213.1
SEBL 2016 2015 2014 2013 2012
Total Income 25617.57 26260.72 27667.10 26918.30 23134.18

Total Expense

The total expense ratio, or TER, is a measure of the total cost of a fund to the investor. Total
costs may include various fees (purchase, redemption, auditing) and other expenses. The TER is
calculated by dividing the total annual cost by the fund's total assets averaged over that year,
and is denoted as a percentage

SEBL 2016 2015 2014 2013 2012

Total Expense 17114.35 18226.45 19377.34 20218.11 17638.99
DBBL 2016 2015 2014 2013 2012
Total expense 16091.5 15415 15417.4 15467 13007.5

Total Investment

In personal finance, total investment simply refers to the amount of money that a person has
in a given place. Finance information website The Motley Fool refers to total investment when
explaining capital gains.

SEBL 2016 2015 2014 2013 2012

Investment 61731.63 58829.27 56378.59 57589.06 39011.28
DBBL 2016 2015 2014 2013 2012
Investment 31778.5 20210.3 19261.2 17441.9 13428.6

Number of Branches

DBBL 2016 2015 2014 2013 2012

No. of Branch 165 155 145 136 126
SEBL 2016 2015 2014 2013 2012
No. of 128 122 113 103 94
Branches
Number of Employees

SEBL 2016 2015 2014 2013 2012

No. of 2089 1889 1780 1704 1655
Employees
DBBL 2016 2015 2014 2013 2012
No. of 6127 5201 5556 4666 5268
employees
Part-D
Profitability Analysis of DBBL
Operating Efficiency Ratio:

Operating Efficiency Ratio measures the profitability and the value of the shareholders’
investment
in the bank. It usually reduces operating expenses and increases the productivity of employees

Total Operating Expenses

Operating efficiency ratio = ------------------------------------
Total Operating Revenues

According to Annual Report Dutch-Bangla Bank operating efficiency ratio :

DBBL 2016 2015 2014 2013 2012

TOR 15931 15608.8 13868.8 12697.9 9090.5
TOE 10409.2 9174.9 8544.4 8114.3 4310.6
OER 65.34% 58.78% 61.61% 63.90% 47.42%

Dutch-Bangla Bank Limited total operating revenue in 2012 is 9090.5 ,2013 is 12697.9 ,
2014 is 13868.8 , 2015 is 15608.8 , 2016 is 15931. The bank operating efficiency ratio in
2012 is 47.42 ,2013 is 63.90, , 2014 is 61.61% , 2015 is 58.78% , 2016 is 65.34% . Here
show that, year 2012 to 2015 the operating efficiency ratio is increasing 47.42% to 65.34%. In
2016 the ROE is increasing . In 2016 is better than any other year.
 OER
70.00% 65.34% 63.90%
61.61%
58.78%
60.00%

50.00% 47.42%

40.00%

OER
30.00%

20.00%

10.00%

0.00%
2016 2015 2014 2013 2012

Dutch-Bangla Bank Limited total operating revenue in 2012 is 9090.5 ,2013 is 12697.9 ,
2014 is 13868.8 , 2015 is 15608.8 , 2016 is 15931. The bank operating efficiency ratio in
2012 is 47.42 ,2013 is 63.90, , 2014 is 61.61% , 2015 is 58.78% , 2016 is 65.34% . Here
show that, year 2012 to 2015 the operating efficiency ratio is increasing 47.42% to 65.34%. In
2016 the ROE is increasing . In 2016 is better than any other year.In chart show that it is higher
than other year.6 is more preferable .

Return on Asset (ROA):

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
The ROA figure gives investors an idea of how effectively the company is converting the money
it has to invest into net income
Net Income
Return on assets = -----------------
Total Assets

DBBL 2016 2015 2014 2013 2012

ROA 0.7% 1.3% 1.1% 1.2% 1.7%

Dutch-Bangla Bank Limited ROA in 2012 is 1.7% ,2013 is 1.2 % , 2014 is 1.1% , 2015 is
1.3% , 2016 is 0.7% . Here show that, year 2012 to 2015 the Return on Assets ratio is
increasing 47.42% to 65.34%. In 2016 the ROE is increasing . In 2012 is better than any other
year..

ROA
0.70%
2016
2015
1.70%
1.30% 2014
1.20% 2013
1.10%
2012

Dutch-Bangla Bank Limited ROA in 2012 is 1.7% , 2013 is 1.2 % , 2014 is 1.1% , 2015 is
1.3% , 2016 is 0.7% . Here show that, year 2012 to 2015 the ROA ratio is increasing 47.42%
to 65.34%. In 2016 the ROE is increasing . In 2012 is better than any other year.. In 2012 is
better than any other year. In chart show that it is higher than other year. 2012 is more preferable
than other year .

Return on Equity (ROE):

Return on equity is a ratio that provides investors with insight into how efficiently a company (or
more specially, its management team) is managing the equity that shareholders have contributed
to the company
Net Income
Return on Equity = --------------------------
Shareholder’s Equity

ROE 2016 2015 2014 2013 2012

ROE 10.2% 19.3% 16.2% 17.0% 23.4%

Dutch Bangla Bank Limited return on equity in 2012 is 23.4% ,2013 is 17.0% % , 2014 is
16.2% , 2015 is 19.3% , 2016 is 10.2% . Here show that, year 2012 to 2015 the Return on
equity ratio is increasing 59.86% to 70.67% . In In 2012 is better than any other year. It is
higher than other year. 2012 is more preferable than other year.
 ROE

23.40% 10.20%
19.30% 2016

17.00% 2015
16.20%
2014
2013
2012

Dutch Bangla Bank Limited return on equity in 2012 is 23.4% ,2013 is 17.0% % , 2014 is
16.2% , 2015 is 19.3% , 2016 is 10.2% . Here show that, year 2012 to 2015 the Return on
Equity ratio is increasing 59.86% to 70.67% . In In 2012 is better than any other year.In chart
show that it is higher than other year. 2012 is more preferable than other year.

Employee Productivity Ratio:

Employee productivity is simply the amount of service that an employee handles in a defined
time frame. It might vary according to factors beyond the employee’s control, like the number of
customers who present for service. Productivity is the basic measure of employee work output .

Net operating Income

Employee Productivity Ratio = ------------------------------------------------------
Number of full-time equivalent employees
Total productivity employee measures management’s ability to use their employee resources
effectively to create profits for the company.The formula of total operating income per
employee

DBBL 2016 2015 2014 2013 2012

NOI 5521.8 6433.9 5324.4 4583.6 5205.6
NO. of 6127 5201 5556 4666 5268
Employees
Employee 0.90 1.24 0.96 0.98 0.99
Productivity
Ratio

Dutch Bangla Bank Limited employee productivity ratio in 2012 is 0.99 % ,2013 is 0.98 % ,
2014 is 0.96 % , 2015 is 1.24% , 2016 is0.90 % . Here show that, year 2012 to 2015 the
employee productivity ratio is increasing 59.86% to 70.67% . In 2015 is better than any other
year. It is higher than other year. 2015is more preferable than other year.

Employee Productivity Ratio

1.4

1.2

0.8

0.6 1.24
Employee Productivity Ratio
0.9 0.96
0.4 0.98 0.99
0.2

0
2016
2015
2014
2013
2012

Dutch Bangla Bank Limited employee productivity ratio in 2012 is 0.99 % ,2013 is 0.98 % ,
2014 is 0.96 % , 2015 is 1.24% , 2016 is0.90 % . Here show that, year 2012 to 2015 the
employee productivity ratio is increasing 59.86% to 70.67% . In 2015 is better than any other
year.In chart show that it is higher than other year. 2015 is more preferable than other year.
Loan Deposit Ratio

Loan-deposit ratio, also known as the LTD ratio or LDR, is a ratio between the banks total
loans and total deposits.

If the ratio is lower than one, the bank relied on its own deposits to make loans to its customers,
without any outside borrowing. If on the other hand, the ratio is greater than one, the bank
borrowed money which it re loan at higher rates, rather than relying entirely on its own deposits.
Banks may not be earning an optimal return if the ratio is too low. If the ratio is too high, the
banks might not have enough liquidity to cover any unforeseen funding requirements or
economic crises.

DBBL 2016 2015 2014 2013 2012

LDR(%) 83.7 81.5 74.6 73.3 73.1

DBBL
86.00%

84.00%

82.00%

80.00%

78.00%

76.00% DBBL

74.00%

72.00%

70.00%

68.00%
2016 2015 2014 2013 2012

Dutch Bangla Bank Limited Loan-deposit ratio in 2012 is 73.1% ,2013 is 73.3 % , 2014 is
74.6% , 2015 is 81.5 %, 2016 is83.7 % . In 2016 the loan deposit ratio is 83.7% and in 2012
the loan deposit is 73.1%. In 2016 is higher than the other year and in 2012 is lower than the
other year.
Return on Investment:
DBBL 2016 2015 2014 2013 2012
ROI(%) 8.0 10.4 10.8 10.8 11.6

ROI
14

12
11.6
10.8 10.8
10 10.4

8 8
ROI
6

0
2016 2015 2014 2013 2012

Dutch Bangla Bank Limited Loan-deposit ratio in 2012 is 11.6,2013 is10.8, 2014 is10.8 , 2015
is 10.4, 2016 is8.0 . In 2012 the loan deposit is In 2016 is higher than the other year . This chart
show that 2012 is higher than any other year .

Earning Per Share

DBBL 2016 2015 2014 2013 2012
EPS 8.8 15.1 11.0 10.0 11.6
 EPS
100%
90%
80%
70%
60%
50%
EPS
40%
30%
20%
10%
0%
2016 2015 2014 2013 2012

Dutch Bangla Bank Limited earning per share in 2012 is11.6 % ,2013 is 10.0% , 2014 is 11.0% ,
2015 is15.1 %, 2016 is8.8% .

Profitability Ratio of South East Bank:

Operating Efficiency Ratio

Operating Efficiency Ratio measures the profitability and the value of the shareholders’
investment in the bank. It usually reduces operating expenses and increases the productivity of
employees

Total Operating Expenses

Operating efficiency ratio = ------------------------------------
Total Operating Revenues
BDT In Million
South-East 2016 2015 2014 2013 2012
Bank
Total 8503.22 8034.27 8289.76 6700.20 5495.19
Operating
Expenses
Total 15771.9 11368.3 12109.7 10412.9 9179.8
Operating
Revenues
Operating 53.91% 70.67% 68.46% 64.35% 59.86%
Efficiency
 ratio

Here, Southeast Bank Limited total operating expenses in 2012 is 5495.19, 2013 is 6700.20,
2014 is 8289.76,2015 is 8034.27, 2016 is 8503.22 . The operating expenses is increasing day
by day. Southeast Bank Limited total operating revenues in 2012 is 9179.8 , 2013 is 10412.9,
2014 is 12109.7, 2015 is 11368.3 , 2016 is 15771.9 . The operating income is increasing day by
day . Southeast Bank Limited total operating efficiency ratio in 2012 is 59.86% , 2013 is 64.35% ,
2014 is 68.46% , 2015 is 70.67% , 2016 is 53.91% . Here show that, year 2012 to 2015 the
operating efficiency ratio is increasing 59.86% to 70.67% In 2016 the market is fluctuating
and the operating efficiency ratio is decreasing .the ratio is 53.91% which is not better for bank
.

Here the Operating efficiency income graphical representation of Southeast Bank Limited
are given below:

OER
80.00%
70.67%
68.46%
70.00% 64.35%
59.86%
60.00% 53.91%
50.00%

40.00%
OER
30.00%

20.00%

10.00%

0.00%
2016 2015 2014 2013 2012

Here, Southeast Bank Limited total operating expenses in 2012 is 5495.19, 2013 is 6700.20,
2014 is 8289.76,2015 is 8034.27, 2016 is 8503.22 . The operating expenses is increasing day
by day. Southeast Bank Limited total operating revenues in 2012 is 9179.8 , 2013 is 10412.9,
2014 is 12109.7, 2015 is 11368.3 , 2016 is 15771.9 . The operating income is increasing day by
day . Southeast Bank Limited total operating efficiency ratio in 2012 is 59.86% , 2013 is 64.35% ,
2014 is 68.46% , 2015 is 70.67% , 2016 is 53.91% . here show that, year 2012 to 2015 the
operating efficiency ratio is increasing 59.86% to 70.67% . In 2015 the graph is higher than
other years. So in 2016 the operating efficiency ratio is decreasing .the ratio is 53.91% which is
not better for bank . In 2015 operating efficiency ratio is better than other years.

Return on Asset (ROA):

Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets.
The ROA figure gives investors an idea of how effectively the company is converting the money
it has to invest into net income

Net Income
Return on assets = -----------------
Total Assets

South-East 2016 2015 2014 2013 2012

Bank
Return on 0.88% 1.23% 1.67% 1.64% 0.95%
Asset

Southeast Bank Limited Return on assets in 2012 is 0.95% ,2013 is 1.64% ,2014 is 1.67%, 2015
is 1.23% , 2016 is 0.88%. Here show that, year 2012 to 2015 the ROA ratio is increasing
59.86% to 70.67% . In 2016 the market is fluctuating and the ROA ratio is decreasing .the ratio
is 53.91% which is not better for bank . In 2014 , ROA is 1.67 % which is higher than any other
year .

Return on Equity (ROE):

Return on equity is a ratio that provides investors with insight into how efficiently a company
(or

more specially, its management team) is managing the equity that shareholders have
contributed to
the company .

Net Income

Return on Equity = --------------------------

Shareholder’s Equity

South-East 2016 2015 2014 2013 2012

Bank
ROE 9.06% 11.86% 16.51% 16.20% 8.42%

Southeast Bank Limited Return on equity in 2012 is 8.42% ,2013 is 16.20% , 2014 is 16.51% ,
2015 is 11.86% ,2016 is 9.06% . Here show that, year 2012 to 2015 the Return on Equity ratio
is increasing 59.86% to 70.67% . In 2016 the market is fluctuating and the ROE is decreasing
.In 2014 , ROE is 16.51 % which is higher than any other year .

ROE

8.42% 9.06%

11.86% 2016
16.20%
2015
2014
2013
16.51% 2012
Southeast Bank Limited Return on equity in 2012 is 8.42% ,2013 is 16.20% , 2014 is 16.51% ,
2015 is 11.86% ,2016 is 9.06% . Here show that, year 2012 to 2015 the ROE is increasing
59.86% to 70.67% . In 2016 the ROE is decreasing .In 2014 , ROEis 16.51 % which is higher
than any other year .In 2014 is better than any other year.

Employee Productivity Ratio:

Employee productivity is simply the amount of service that an employee handles in a defined time
frame. It might vary according to factors beyond the employee’s control, like the number of
customers who present for service. Productivity is the basic measure of employee work output .

Net operating Income

Employee Productivity Ratio = ------------------------------------------------------
Number of full-time equivalent employees

Total peroductivity employee measures management’s ability to use their employee resources
effectively to create profits for the company. The formula of total operating income per
employee

South-East 2016 2015 2014 2013 2012

Bank
Net 8503.22 8034.27 8289.76 6700.20 5495.19
Operating
Income
Number of 2089+527=261 1889+487=2376 1780+441=222 1704+414=211 1655+355=2010
Total 6 1 8
employee
(Banking+N
on Banking)
Employee 3.25 3.38 3.73 3.16 2.73
Productivit
y Ratio
Southeast Bank Limited employee productivity ratio in 2012 is 2.73 ,2013 is 3.16 , 2014 is 3.73
, 2015 is 3.38 ,2016 is 3.25 . Here show that, year 2012 to 2015 the employee productivity
ratio is increasing . In 2016 the employee productivity ratio is decreasing .In 2014 , employee
productivity ratio is 3.73 which is higher than any other year .In 2014 is better than any other
year .

Employee Productivity Ratio

4

3.5

2.5

2 3.73 Employee Productivity Ratio

3.25 3.38 3.16
1.5 2.73
1

0.5

0
2016 2015 2014 2013 2012

Southeast Bank Limited employee productivity ratio in 2012 is 2.73 ,2013 is 3.16 , 2014 is 3.73
, 2015 is 3.38 ,2016 is 3.25 . Here show that, year 2012 to 2015 the operating efficiency ratio
is increasing . In 2016 the employee productivity ratio is decreasing .In 2014 , employee
productivity ratio is 3.73 which is higher than any other year .In 2014 is better than any other
year

Earning Per Share

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability.
Calculated as:

South-East 2016 2015 2014 2013 2012

Bank
EPS 2.66 3.35 4.18 6.68 1.89
Southeast Bank Limited earning per sharein 2012 is 1.89 % ,2013 is 6.68 % , 2014 is
4.18 % , 2015 is3.35 %, 2016 is 2.66 % . In 2013 the loan deposit ratio is 6.68 % and in
2012 the loan deposit is 1.89 %. In 2013 is higher than the other year and in 2012 is
lower than the other year .

Comparative Analysis between Dutch Bangla Bank Ltd.& Southeast Bank Ltd.

1. Operating Efficiency ratio: Operating Efficiency ratio denotes the portion of Total
Operating expense in the total operating income. This ratio indicates that how the bank
manage it asset and its liability with a view to manage the total operating income and
expense. Lower ratio indicates that the management of the bank efficiently manages the
asset and liability which result lower Total operating Expense. The lower the Operating
expense, Higher the total operating income.
 80.00%
70.67%
68.46%
70.00% 65.34% 63.90% 64.35%
58.78% 61.61% 59.86%
60.00% 53.91%
47.42%
50.00%
DBL
40.00%
SBL
30.00%

20.00%

10.00%

0.00%
2016 2015 2014 2013 2012

In comparison between two banks, it is clearly seen that the Operating efficiency ratio of SBL is
higher than the DBBL. Only in 2016 DBBL is higher than SBL. That means the management of
DBL bank is not Productive and non efficient rather than SBL management in 2016 otherwise
rest of the year SBL OER is higher than DBL. Because SBL is not well managed on their asset
and liability which result they are not capable to generate more total operating income but they
produce more Operating Expense. On the other hand the management of DBBL is more efficient
where they consistently generate less Operating efficiency ratio which means they are well
managed about their operating expense.

2. Return on Asset (ROA): ROA is the one kind of performance measurement tools of a
bank or institution which denotes that how the bank is well managed in its assets where
they can generate maximum return as much as possible. It also indicates that how well
a bank utilize its asset. The more the ratio as percentage, the better performance is given
by the bank.
 0.88%
2016 0.70%

1.23%
2015 1.30%

1.67%
SBL
2014 1.10%
DBL
1.64%
2013 1.20%

0.95%
2012 0.70%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80%

In comparison, The SBL are well managed in their total asset according to the date of
last five years than DBBL. Net Income after tax and ultimately ROA is higher than the
DBBL. Beside, SBL hold less asset than DBBL but they utilize it properly. But earlier
discussion it is seen that the management is not efficient which result lowers ROA.

3. Return on Equity (ROE): Return on Equity (ROE) is an another tools of

performance measurement of a bank which denotes that how well the bank
utilize the shareholder capital and generate maximum profit by making
investment efficiently, therefore, shareholder wealth can be maximized. More the
return, the more efficiency of managing the investment is ensured.
 25.00%
23.40%
19.30%
20.00% 16.51%
16.20%
11.86% 16.20% 17.00%
15.00% 9.06%
10.20%
10.00% DBL
8.42%
SBL
5.00%

0.00%
SBL
2016
2015 DBL
2014
2013
2012

According to the data, it can be observed that in 2012 the Dutch Bangla Bank manages
well in their shareholder capital and make higher return from their shareholder capital
than previous year. We observed in the last five years which result the overall ROE of
SBL is low. In 2014 DBL and SBL ROE is close. In the remaining year SBL generate more
profit from the shareholder equity capital. But in a close look the lowest ROE is seen in
2012 which is belonging to the Southeast bank. On the other hand, the highest ROE is
observed in 2012 which is belong to DBL which confirmed that the Bank utilize
efficiently the fund of shareholder capital.
 4. Employee Productivity Ratio: Employee Productivity ratio is the measurement
tool of Management efficiency which indicates that how well per employee of
bank generate more net operating income by reducing the total operating
expense with their productivity. The more the ratio in BDT, the better productive
employee is hold by the bank.

3.25%
2016
0.90%

3.38%
2015
1.24%

3.73% SBL
2014
0.96%
DBBL

3.16%
2013
0.98%

2.73%
2012
0.99%

0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00%

Graphical representation and Last five year date shows that the employee of the SBL is
far productive and efficient than the DBBL which result they efficiently reduce its total
operating cost and generate more net operating income by per employee of the bank.
As a result the performance of the SBL bank is ultimately well. In 2014, the employee of
the SBL generate highest Employee productivity ratio by utilizing the bank’s asset and
liability efficiently.
5. Earnings Per Share: EPS means the portion of a company profit allocate to each
outstanding share. The more the ratio in BDT, the better profits hold by the bank.

16 15.1

14
11.6
12 11
10
10 8.8
DBBL
8 6.68
SBL
6
4.18
3.35
4 2.66
1.89
2

0
2016 2015 2014 2013 2012

Here we see that between these two banks DBBL is more EPS than SBL that
means DBBL allocate more profit than SBL. The reason behind that management
is well managed that’s why DBBL get more profit.
Analysis of Leverage Ratio
What is a 'Leverage Ratio'

Companies rely on a mixture of owners' equity and debt to finance their operations. A
leverage ratio is any one of several financial measurements that look at how much
capital comes in the form of debt (loans), or assesses the ability of a company to meet
financial obligations. It provides an indication of how much assets are coming from
loans to finance business operations

BREAKING DOWN 'Leverage Ratio'

Too much debt can be dangerous for a company and its investors. Uncontrolled debt
levels can lead to credit downgrades or worse. On the other hand, too few debts can
also raise questions. If a company's operations can generate a higher rate of return than
the interest rate on its loans, then the debt is helping to fuel growth in profits. A
reluctance or inability to borrow may be a sign that operating margins are simply too
tight.

There are several different specific ratios that may be categorized as a leverage ratio, but
the main factors considered are debt, equity, assets and interest expenses.

A leverage ratio may also refer to one used to measure a company's mix of operating
costs, giving an idea of how changes in output will affect operating income. Fixed and
variable costs are the two types of operating costs; depending on the company and the
industry, the mix will differ.

Finally, the consumer leverage ratio refers to the level of consumer debt as compared to
disposable income and is used in economic analysis and by policymakers

Common Leverage Ratios

There are several difference leverage ratios. Some accounts that are considered to have
significant comparability to debt are total assets, total equity, operating expenses and
incomes, and interest expense.
Below are just three of these accounts and the ratios that use them:

 Debt-to-Asset Ratio = Total Debt / Total Assets

 Debt-to-Equity Ratio = Total Debt / Total Equity
 Debt-to-EBITDA Ratio = Total Debt / Earnings Before Interest Taxes Depreciation
& Amortization

What is the 'Debt/Equity Ratio'

Debt/Equity Ratio is a debt ratio used to measure a company's financial leverage,

calculated by dividing a company’s total liabilities by its stockholders' equity. The D/E
ratio indicates how much debt a company is using to finance its assets relative to the
amount of value represented in shareholders’ equity.

D/E ratio indicates how much debt a company is using to finance its assets relative to
the amount of value represented in shareholders'

The debt-to-equity ratio is a measure of the relationship between the capital contributed
by creditors and the capital contributed by shareholders. It also shows the extent to
which shareholders' equity can fulfill a company's obligations to creditors in the event
of a liquidation.

Why it Matters:

In general, a high debt-to-equity ratio indicates that a company may not be able to
generate enough cash to satisfy its debt obligations. However, low debt-to-equity ratios
may also indicate that a company is not taking advantage of the increased profits that
financial leverage may bring

BREAKING DOWN 'Debt/Equity Ratio'

 Given that the debt/equity ratio measures a company’s debt relative to the total
value of its stock, it is most often used to gauge the extent to which a company is
taking on debts as a means of leveraging (attempting to increase its value by
using borrowed money to fund various projects). A high debt/equity ratio
generally means that a company has been aggressive in financing its growth with
debt. Aggressive leveraging practices are often associated with high levels of
risk. This may result in volatile earnings as a result of the additional interest
expense.
  For example, suppose a company has a total shareholder value of $180,000 and
has $620,000 in liabilities. Its debt/equity ratio is then 3.4444 ($620,000 / $180,000),
or 344.44%, indicating that the company has been heavily taking on debt and
thus has high risk. Conversely, if it has a shareholder value of $620,000 and
$180,000 in liabilities, the company’s D/E ratio is 0.2903 ($180,000 / $620,000), or
29.03%, indicating that the company has taken on relatively little debt and thus
has low risk.

 If a lot of debt is used to finance increased operations (high debt to equity), the
company could potentially generate more earnings than it would have without
this outside financing. If this were to increase earnings by a greater amount than
the debt cost (interest), then the shareholders benefit as more earnings are being
spread among the same amount of shareholders. However, if the cost of this debt
financing ends up outweighing the returns that the company generates on the
debt through investment and business activities, stakeholders’ share values may
take a hit. If the cost of debt becomes too much for the company to handle, it can
even lead to bankruptcy, which would leave shareholders with nothing.

South-East Bank

The most well known financial leverage ratio is the debt-to-equity ratio. It is expressed
as:

Total Debt / Total Equity

Year Debt to equity ratio

2016 265470.1/26522.9=10
2015 233028.1/27224.9=8.6
2014 211696.8/24519.4=8.63
2013 198662.1/21916=6.3
2012 169984.3/19803.2=8.6
In 2010 the debt to equity ratio is very high than other years which means that company
is taking too much risk to finance its aseets relative to the amount of value represented
its shareholders. , a high debt-to-equity ratio indicates that a company may not be able
to generate enough cash to satisfy its debt obligations. On the other hand in 2013 the
Debt to equity ratio was lowest. But sometimes low debt-to-equity ratios may also
indicate that a company is not taking advantage of the increased profits that financial
leverage may bring
Dutch-Bangla Bank
Dutch 2016 2015 2014 2013 2012
Bangla Bank
Debt to 21 26.3 32.1 23.6 11.0
Equity
Ratio(%)
In 2014 the Debt to equity ratio was higher comparative to other years ,which means
that company is taking too much risk to finance its aseets relative to the amount of
value represented its shareholders. , a high debt-to-equity ratio indicates that a
company may not be able to generate enough cash to satisfy its debt obligations.

Debt to Asset Ratio

The debt to assets ratio indicates the proportion of a company's assets that are being
financed with debt, rather than equity. The ratio is used to determine the financial risk
of a business. A ratio greater than 1 shows that a considerable proportion of assets are
being funded with debt, while a low ratio indicates that the bulk of asset funding is
coming from equity. A ratio greater than 1 also indicates that a company may be
putting itself at risk of not being able to pay back its debts, which is a particular
problem when the business is located in a highly cyclical industry where cash flows can
suddenly decline. A company may also be at risk of nonpayment if its debt is subject to
sudden increases in interest rates, as is the case with variable-rate debt.

When using this ratio, track it on a trend line. An increasing trend indicates that a
business is unwilling or unable to pay down its debt, which could indicate a default at
some point in the future.

Possible requirements by lenders to counteract this problem are the use of restrictive
covenants that force excess cash flow into debt repayment, restrictions on alternative
uses of cash, and a requirement for investors to put more equity into the company.

To calculate the debt to assets ratio, divide total liabilities by total assets. The formula is:

Total liabilities ÷ Total assets

The debt to total assets ratio is an indicator of financial leverage. It tells you
the percentage of total assets that were financed by creditors instead of investor.
In other words, it shows what percentage of assets is funded by borrowing compared
with the percentage of resources that are funded by the investors.

Basically it illustrates how a company has grown and acquired its assets over time

This is an important measurement because it shows how leveraged the company by

looking at how much of company’s resources are owned by the shareholders in the
form of equity and creditors in the form of debt. Both investors and creditors use this
figure to make decisions about the company.

BREAKING DOWN 'Total Debt to Total Assets'

For example, assume hypothetical company Levered Co. has $40 million in long-term
debt, $10 million in short-term debt, and $100 million in total assets. Levered Co. would
therefore have a total debt to total assets ratio of 0.5. On the other hand, if rival
LowLevered Co. has $5 million in long-term debt, $5 million in short-term debt, and $50
million in total assets, its total debt to total assets ratio would be 0.2.

From the above example, 50% of Levered Co.’s assets have been financed by debt, while
only 20% of LowLevered Co.’s assets were. Levered Co. has a much higher degree of
leverage than LowLevered Co., and therefore a lower degree of financial flexibility.

South East Bank Debt to Asset ratio

SEBL 2016 2015 2014 2013 2012
Total 265470.1 233028.1 211696.8 198662.1 169984.3
liabilities
Total Assets 291798.01 260718.03 236608.40 220930.85 191276.30
Debt to 0.90 0.89 0.89 0.90 0.88
Asset Ratio

IN 2016 debt to asset ratio was higher than other years. And IT refers that
the percentage of total assets that were financed by creditors instead of investor was
higher comparative to other years.
Dutch Bangla Bank

DBBL 2016 2015 2014 2013 2012

Total 60051.7 55015.0 47279.9 46561.9 43522.8
liabilities
Total 276844.4 244057.6 215993.5 185537.4 155918.6
Assets
Debt to 0.22 0.23 0.22 0.25 0.28
Asset Ratio
IN 2012 Debt to Asset ratio was higher and in 2014 and 2016 Debt to Asset ratio was
higher. In 2012 the percentage of total assets that were financed by creditors instead of
investor was higher comparative to other years.

What is 'Debt/EBITDA'

Debt/EBITDA is a measure of a company's ability to pay off its incurred debt. The ratio
gives the investor the approximate amount of time that would be needed to pay off all
debt, ignoring the factors of interest, taxes, depreciation and amortization.

Commonly used by credit rating agencies to assess a company's probability of

defaulting on issued debt, a high Debt/EBITDA ratio suggests that a firm may not be
able to service its debt in an appropriate manner and warrants a lowered credit rating.

BREAKING DOWN 'Debt/EBITDA'

When analysts look at the debt/EBITDA ratio, they want to know how well a company
can cover its debts. EBITDA is another way of saying earnings or income. Specifically, it
is an acronym for earnings before interest, taxes, depreciation and amortization.
Companies often look at EBITDA as a more accurate measure of earnings than net
income. EBITDA is calculated by adding interest, taxes, depreciation and amortization
to net profit. Some analysts see interest, taxes, depreciation and amortization as a
manipulation of real cash flows. In other words, they see EBITDA as a cleaner
representation of the real cash flows available to pay off debt.

A lower debt/EBITDA ratio is a positive indicator that the company has sufficient funds
to meet its financial obligations when they fall due. A higher debt/EBTIDA ratio means
that the company is heavily leveraged and it might face difficulties in paying off its
debts.

A declining debt/EBITDA ratio is better than an increasing one because it implies the
company is paying off its debt and/or growing earnings. Likewise, an increasing
debt/EBITDA ratio means the company is increasing debt more than earnings.

Example of Debt/EBITDA and Interpretation

As an example, if company A has $100 million in debt and $10 million in EBITDA, the
debt/EBITDA ratio is 10. If company A pays off 50% of that debt in the next five years,
while increasing EBITDA to $25 million, the debt to EBITDA ratio falls to two. A
declining debt/EBITDA ratio is better than an increasing one because it implies the
company is paying off its debt and/or growing earnings. Likewise, an increasing
debt/EBITDA ratio means the company is increasing debt more than earnings. Some
industries are more capital intensive than others, so companies should only be
compared against other companies in the same industry.

Formula:

South-East 2016 2015 2014 2013 2012

Bank
Total Debt 265470.1 233028.1 211696.8 198662.1 169984.3
EBITDA 8503.22 8034.27 8289.76 6700.20 5495.19
Debt to 31.2 29 25.54 29.7 30.93
EBITDA
ratio
In 2016 Debt to EBITDA is incredibly high. And it refers that A higher debt/EBTIDA
ratio means that the company is heavily leveraged and it might face difficulties in
paying off its debts. South east bank is not doing good to payoff its debts.

DBBL 2016 2015 2014 2013 2012

Total Debt 60051.7 55015.0 47279.9 46561.9 43522.8
EBITDA 5521.8 6433.9 5324.4 4583.6 5205.6
Debt to 10.88 8.55 8.88 10.16 8.36
EBITDA
ratio
In 2012 the Debt to EBITDA is lower and it refers that A lower debt/EBITDA ratio is a positive
indicator that the company has sufficient funds to meet its financial obligations. A declining
debt/EBITDA ratio is better than an increasing one because it implies the company is
paying off its debt and/or growing earnings. Likewise, an increasing debt/EBITDA ratio
means the company is increasing debt more than earnings that happened in 2016

Comparative Analysis Between Dutch-bangla and South-East Bank

Debt to Equity:

2012 11
8.6

2013 23.6
6.3
2014
32.1 DBBL
2015 8.63 SEBL
26.3

2016 8.6
21
10
0
10
20
30
40
50
Debts to Asset

2012 0.28 0.88

2013 0.25 0.9

DBBL
2014 0.22 0.89
SEBL

2015 0.23 0.89

2016 0.22 0.9

0 0.2 0.4 0.6 0.8 1 1.2

Debt to EBITDA

45

40

35

30
31.2
25 29.7 SEBL
29 30.93
25.54
20 DBBL

15

10
10.88 8.88 10.16
5 8.55 8.36

0
2016 2015 2014 2013 2012
Part-E
SWOT Analysis of Dutch bangle bank
SWOT analysis refers to analysis of Strengths, Weakness, Opportunities and Threats of
the organization. This facilitates the organization to make its future performance improved in
comparison to its competitors. An organization can also study its current position
through SWOT analysis. For all of these, SWOT analysis is considered as an important tool for
making changes in the strategic management of an organization. SWOT is the short form
of the Strengths, Weaknesses, Opportunities and Threats. This analysis actually has done to
minimize the company’s overall weaknesses and threats by implementing the existing
strengths and opportunities properly. Management done it predicts the future and set
their goals and objectives.

Strengths:

1. DBBL has already established its wide image and favorable reputation in the banking
territory of the country. It is one of the leading private sector commercial banks in
Bangladesh.

2. DBBL is the first Bangladeshi-European joint venture Bangladeshi Bank.

3. The bank posses the reputation and goodwill of quality services to its all kinds of customers.

4. The bank has already achieved a high growth rate of deposit, investment and profit.

5. The bank has trained experienced and well educated manpower.

6. The bank has unique corporate culture, which acts as a great motivational factor among the
employees.

7. The working environment in the bank is very friendly, interactive and informal.
There is no barrier or boundary for communication between the superiors and the
employees.

8. The bank has experienced and efficient Management & Board of Directors.

9. DBBL allows all local remittances such as TT, DD, PO etc at free of costs
10.Objectives are not only to make profit, but also simultaneously contribute towards social and
human developments.

11.Setting up ATMs at the remote of the corner.

12.Internet business and some other technology based banking services are totally free of costs.

13.Some financial indicators ate still at in satisfactory level even in the political unrest,
natural calamity and poor economic condition.

Weaknesses:

1.The Branches of the bank have to depend on its Head office for decisions.

2.The bank does provide online banking service and ATM service, which is limited still now and
increasing in charge may not be motivate the customer to use these.

3. The product diversification of the bank is very narrow for large industrial sectors.

4. The bank has more redundant lower level manpower compared to other banks of the
same generation, which increases it operational cost.

5.The political and environmental factors affect adversely to its performance.

6.Only in large and metropolitan cities the branches are available.

Threats:

1) Regulatory restrictions may be a cause of threats.

2) The selection of default customers may be a hindrance of its rapid growth.
3) In our country industries are becoming sick at an increasing rate and growth
of industrialization is very slow in the country. Therefore, it is very likely that
poor industrial growth will affect the potentiality of DBBL.
4) Multinational banks may merge with local banks to provide good services
5) The local banks may provide this Cash Management service with free of cost.
6) Fear of losing market share of existing PCM market.
7) Some free services may decrease the overall net profit.
8) Price (interest rates) war.
9) Large network of the established local banks.
10) Unrest political situation.
 11) Poor economic environment of Bangladesh.

SWOT ANALYSIS of South east bank

Internal Environment of Southeast Bank Limited

STRENGTH

> Sound Profitability and growth with good internal capital generation.
> High quality of asset.
> Quality products.
> Experienced and effective Management Team.
> Better infrastructure facilities.
> Good corporate culture and friendly working environment.
> Board with financial flexibility
> Very good reputation as a local bank

WEAKNESS

> Small market share.

> High concentration of fixed deposits.
> Marginal capital adequacy.
> Lack of effective marketing / promotional activities.
> Lack of full-scale automation.
> High concentration of large loans.

7.2 External Environment

OPPORTUNITIES

 Scope of market penetration through diversified products.

 Regulatory environment favoring private sector development.
  Increasing trend in international business.
 Introduction of credit card and Tele-banking.
 Value addition in products and services.

THREATS

 Increased competition for market share in the common banking arena.

 Market pressure for lowering the lending rate.
 Global and local unstable political situation.
 Vulnerable Government regulations.
 Multinational banks with good services.
 Default culture all over the country.
Part-F
Findings

 Both banks Gross profit and net profits are decreased during the period of study for

the first 2 years, which indicates that bank’s inefficient management in

manufacturing and trading operations.

 Gross profit and net profits are increased in the last three year of Both banks which

indicates that bank’s efficient management in manufacturing and trading

operations

 Liquidity ratio of the bank is not better liquidity position in over the five years. It

shows that the bank had not sufficient liquid assets

 The inventory of the bank in the first year has been sold very slow. And there is an

increase in the movement of the inventories but it slightly decreased in the last year.

This may be a sign not good to the bank.

 The fixed assets turnover ratio of the bank has increased continuously recently and

it again decrease in after that.

 The current assets turnover ratio is increasing recently

 The cost of manufacturing overhead of the bankrecently has slowed down where it

compare to the next 3year it increase rapidly.

SUGGESTIONS

 The profit of the bank Is not in a good Position For That bank has to Take

Alternative Actions such As

 The banks have low current ratio so it should increase its current ratio where it can

meet its short term obligation smoothly.

 Liquidity ratio of the bank is not better liquidity position in over the five years. So I

suggested that the bank maintain proper liquid funds like cash and bank balance.

 It should enhance its employee’s efficiency, more training needed to its employees

in order to increase its production capacity and minimize mistakes while

performing the tasks, also more safety precaution need to implement to the

employees who directly working on sugar production process.

CONCLUSION

This project of Ratio analysis in the production concern is not merely a work of the

project. But a brief knowledge and experience of that how to analyze the financial

performance of the bank. The study undertaken has brought in to the light of the

following conclusions. According to this project we came to know that from the analysis

of financial statements it is clear that both banks. It Has been incurring loss during the

period of study. So the bank should focus on getting of profits in the coming years by

taking care internal as well as external factors. And with regard to resources, the bank is

take utilization of the assets properly. And also the bank has a maintained low

inventory.
References
 http://www.investopedia.com/terms/p/profitabilityratios.asp
 https://www.wikipedia.org/
 https://www.dutchbanglabank.com/
 https://www.southeastbank.com.bd/home.php
 http://study.com/academy/lesson/leverage-ratios-types-formula.html
 https://www.accountingtools.com/articles/2017/5/5/debt-to-assets-ratio
 https://www.scribd.com/document/229488576/Horizontal-Vertical-Analysis-2013-Askari-Bank