Executive Summary

In the new competitive business era, private banking sector is getting more competitive in
Bangladesh. In this sector the most used financial statements are the balance sheet and profit and
loss account where the balance sheet shows the financial position and profit and loss account
shows the net profit or net loss of a bank. Ratio Analysis deals with these statements
Ratio analysis is the most popular trend to evaluate a bank’s performance over years or with
other companies in an industry. In our report we had to study (IFIC Bank.Ltd, Prime Bank.Ltd,
and Standard Bank.Ltd & NCC Bank.Ltd) financial statements for the last 4 years then had to
analyze and give significant comments regarding the changes in the financial position. Analysis
and interpretation of these financial statements through ratio analysis has now become an
important technique for performance appraisal because the investors, financial experts,
management executives and the bankers are always rely on these ratios to make important
decisions. The management team of any bank, investor and the government agencies always
concern about liquidity ratios and adequacy ratios of a bank which interprets the efficiency of a
bank.

1
 Introduction of Four Banks
International Finance Investment and Commerce Bank Limited (IFIC)

In 1983, IFIC bank was established, when the Government allowed banks in the private sector. The bank
listed with DSE In1886 and CSE in 1997 International Finance Investment and Commerce Bank Limited
(IFIC Bank) is a banking company incorporated in the People's Republic of Bangladesh with limited
liability. It was set up at the instance of the Government in 1976 as a joint venture between the
Government of Bangladesh and Sponsors in the private sector with the objective of working as a finance
company within the country and setting up joint venture banks/financial institutions aboard. IFIC was
converted into a full-fledged commercial bank. The Government of the People's Republic of Bangladesh,
now, holds 32.75% of the share capital of the Bank. Directors and Sponsors having vast experience in the
field of trade and commerce own 8.33% of the share capital and the rest is held by Institutions both local
& foreign and General Shareholders.
Subsidiary Company: IFIC Securities Limited, IFIC Money Transfer (UK) Limited
 No. of Employees: 2,556
 No. of Branches: 147
 Cfairman: Salman F Rahman
 Also the owner of Beximco Group
 Mr. Rahman is the Honorable Member of the Parliament from Dhaka-1 Constituency and also an
Adviser to the Prime Minister for the Private Industry and Investment sector,
 Board of director Anwaruzzaman Chowdhury
 MBA from London, UK., He is a Director of IFIC Money Transfer (UK) Limited

Standard Bank Limited

Standard Bank Limited is a private commercial bank in Bangladesh. The bank was founded on 3
June 1999, with an approved capital of 750 million taka. There are total 135 branches of
Standard Bank Limited in Bangladesh. Mamun-Ur-Rashid is the managing director of the bank,
Kazi Akram Uddin Ahmed is the Founder chairman of the bank, Mr.Kamal Mostafa Chowdhury
is the Founder Vice-Chairman & Director of the Bank. There are 2,389 Employees in the bank

2
 National Credit and Commerce Bank Ltd

National Credit and Commerce Bank Ltd. bears a unique history of its own. The organization
started its journey in the financial sector of the country as an investment company back in 1985.
The aim of the company was to mobilize resources from within and invest them in such way so
as to develop country's Industrial and Trade Sector and playing a catalyst role in the formation of
capital market as well. Its membership with the browse helped the company to a great extent in
these regard. The company operated upto 1992 with 16 branches and thereafter with the
permission of the Central Bank converted into a full-fledged private commercial Bank in 1993
with paid up capital of Tk. 39.00 crore to serve the nation from a broader platform.

Since its inception NCC Bank Ltd. has acquired commendable reputation by providing sincere
personalized service to its customers in a technology based environment.

The Bank has set up a new standard in financing in the Industrial, Trade and Foreign exchange
business. Its various deposit & credit products have also attracted the clients-both corporate and
individuals who feel comfort in doing business with the Bank.

Chairman

Alhaj Md. Nurun Newaz

Managing Director and CEO

Mosleh Uddin Ahmed

No of employees 2145

3
 Prime Bank Limited
• Prime Bank is creating a responsible business that will always meet customers’ needs
and a culture where our colleagues put customers first. This is the key to our long-term
success and to fulfilling our aim to retain our position as the best private commercial
Bank for customers, colleagues and shareholders. To keep pace with the rapid change
in technology to bring new opportunities to improve our service to customers with
faster, more convenient and more extensive propositions tailored to meet their needs.
Prime Bank was created and commencement of business started on 17th April 1995. 
Listed with Chittagong Stock Exchange Limited in 15 November, 1999

Listed with Dhaka Stock Exchange Limited in 27 March, 2000

Total Branch: 128 (60 branch inside Dhaka division)
Total Assets (BDT):293,901 million
Loans and Advance (BDT):205,810 million
Deposits (BDT):197,518 million
Net Profit (BDT):2,188 million
Return on Equity: 8.60%
Return on Assets: 0.76%
Chairman and Board of director of this bank
1. Azam J Chowdhury (Chairman)
2. Mafiz Ahmed Bhuiyan(vice chairman)
3. Imran Khan (vice chairman)

4
 Business Operation
IFIC BANK Limited
IFIC Bank Provide Loan In These sector:
Term Loan Industrial
Agricultural Loan
Term women entrepreneur
House Bulidings Loan
Staff Loan
Transport Loan
Lease Finance
Prime Bank Limited

Prime Bank Provide Loan in these sector

Secured overdraft / Quard against TDR
Cash credit / Murabaha
Loans (General)
House building loans
Loans against trust receipt
Payment against document
Retail loan
Lease finance / Izara
Credit card
Hire purchase
Other loans and advances

5
 Standard Bank Limited
Standard Bank Provide Loan in these sector
Agricultural Sector
Textile Sector
Food and Allied Industries
Services Sector
Transport
Cement And Ceramic sector
Leather, chemical and cosmetic industries
House buildings loan
SME Loan
Consumer Credit

NCC Bank Limited

NCC Bank Provide Loan in these sector
Loan against imported merchandise (LIM)
Loan against trust receipt (LTR)
Transport loan
House building loan
Project loan
Personal loan
Consumer credit loan
Agricultural
Small business loan
Term loan Staff loan
Car loan
Short term loan
Export loan Time loan

6
 Performance Analysis
ROE
Year 2016 2017 2018
Bank Name
(IFIC)Bank Ltd 9.16% 9.03% 6.37%
PRIMEBANK.Ltd 8.65% 4.90% 8.32%

STANDBANK,Ltd 8.69% 9.24% 8.47%

NCCBANK.Ltd. 12.55% 10.73% 10.26%

ROE

14.00%
12.55%
12.00%
10.73%
10.26%
10.00% 9.16%9.03% 9.24%
8.65% 8.32% 8.69% 8.47%
8.00%
6.37%
6.00%
4.90%
4.00%

2.00%

0.00%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: According to return on equity (ROE), the NCCBANK getting priority as a

best ROE ratio holder. Because they hold bigger ROE ratio than other banks. In 2016 their ROE
was 12.55%, in 2017 their ROE was 10.73%, and in 2018 was 10.26% that was better than other
bank.And Then the last three years (2016,2017,2018), the Roe of Standard Bank are respectively
8.69%,9,24% and 8.47% which is higher than the ROE of IFIC Bank 9.16%,9.03%,6.37% which
is higher than the ROE Of Prime Bank 8.65%, 4.90% &8.32% which is lower than among
othherROE Basically Return on equity (ROE) measures how effectively management is using a
company’s assets to create profits.

7
 Year 2016 2017 2018
(IFIC)Bank Ltd 0.61 0.81 0.55
PRIMEBANK.Ltd 0.1 0.28 0.6
STANDBANK,Ltd 0.72 0.70 0.64
NCCBANK.Ltd. 1.19 0.91 0.75
ROA

ROA

1.40%
1.2%
1.20%

1.00% 0.91%
0.81%
0.80% 0.7% 0.70% 0.8%
0.6% 0.6%
0.6%
0.60% 0.5%

0.40%
0.28%
0.20%
0.1%
0.00%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: Return on Assets (ROA) is an indicator of how well a company utilizes

its assets, by determining how profitable a company is relative to its total assets. Higher
ROA indicates more asset efficiency. So here if you judge the better performer bank
based on ROA in 2016,2017 & 2018 then firstly come NCCBANK.Ltd are 1.19%,0.91%
&0.75% After that STANDBANK,Ltd ROE are 0.72%,0,70% &0.64%accordingly
thirdly and fourthly, (IFIC)BANK.Ltd and Prime Bank Ltd. The lowest ROA is Prime
Bank, because they were continue carry poor ROA in past years like 2016, 2017 compare
to other Banks. But they improve batter in 2018. And the highest ROA holder bank is
NCCBANK.Ltd. but they are decreasing year by year(2016-18) in ROA sector. But still
holding batter ROA than compared banks.

8
 Net Interest Margin
Year 2016 2017 2018
(IFIC)Bank Ltd 2.20% 2.18% 1.61%
PRIMEBANK.Ltd 1.17% 1.77% 2.59%
STANDBANK,Ltd 2.19% 1.71% 1.88%
NCCBANK.Ltd. 2.28% 2.28% 2.33%

Net Interest Margin

3.00%

2.59%
2.50%
2.20%2.18%
2.28%2.28%2.33%
2.19%

2.00% 1.88%
1.77% 1.71%
1.61%
1.50%
1.17%

1.00%

0.50%

0.00%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation:
Net interest margin is a ratio that measures how successful a firm is at investing its funds
in comparison to its expenses on the same investments.  It is one of the profitability
indicators of an organization, showing how much it earns on interest from its credit
products—loans, mortgages—compared to the interest it pays out on things like savings
accounts and certificates of deposit (CDs). Here also leading goes to is NCCBANK.Ltd.
their last 3year( 2016.2017,201)8 net interest margin ratios are respectively 2.28%,2.28%
&2.33%. that were better than other bank but prime bank was the leading NIM of 2018
was 2.59%. In 2016,2017 & 2018 The net interest margin of IFIC
were2.20%,2.18%&1.61% which hold the 2nd position of Net interest margin and higher
than 2016,2017 & 2018 net interest margin of prime bank(1.17%, 1.77% & 2.59%) which
is lower than 2016,2017 & 2018 net interest margin of standard bank(2.19%,1.71% &
1.88%)

9
 Net Non Interest Margin
Year 2016 2017 2018

(IFIC)Bank Ltd 2.05% 1.66% 1.55%

PRIMEBANK.Ltd 3.19% 2.20% 1.88%
STANDBANK,Ltd 1.84% 2.00% 1.74%
NCCBANK.Ltd. 2.06% 2.01% 1.95%

Net Non-interest margin

3.50%
3.19%
3.00%

2.50%
2.20%
2.05% 2.00% 2.06%2.01%
2.00% 1.88% 1.95%
1.84%
1.66% 1.74%
1.55%
1.50%

1.00%

0.50%

0.00%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: Non-interest income is bank and creditor income derived primarily

from fees including deposit and transaction fees, insufficient funds (NSF) fees, annual
fees, monthly account service charges, inactivity fees, check and deposit slip fees, and so
on. Credit card issuers also charge penalty fees, including late fees and over-the-limit
fees. Institutions charge fees that generate non-interest income as a way of increasing
revenue and ensuring liquidity in the event of increased default rates. Interest is the cost
of borrowing money and is one form of income that banks collect. Prime Bank LTD .
also done better here than other bank. Their last year 3years of Net Non-Interest Margin
ratio were 3.19%,2.20% & 1.88% in 2016,2017 &2018. That was better than other bank.

10
 NPL/LOANS
A nonperforming loan (NPL) is a loan in which the borrower hasn't made any scheduled
payments of principal or interest for some time. The International Monetary Fund
considers loans that are less than 90 days past due as nonperforming if there's high
uncertainty surrounding future payments. Here prime bank provide lowest non-
performing loan
Year 2016 2017 2018

(IFIC)Bank Ltd 5.1% 6.3% 6.0%

PRIMEBANK.Ltd 3.7% 3.8% 4.3%
STANDBANK,Ltd 3.6% 8.2% 7.8%
NCCBANK.Ltd. 5.6% 5.7% 5.7%

NPL/Loans
9.0%
8.2%
8.0% 7.8%

7.0%
6.3%
6.0%
6.0% 5.6% 5.7% 5.7%
5.1%
5.0%
4.3%
4.0% 3.7% 3.8% 3.6%

3.0%

2.0%

1.0%

0.0%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: IN this chart the NPL of standard Bank in 2016, 2017, & 2018 were 3.6%,
8.2% & 7.8 % In 2018 they provide 4.23% non-performing loan, and STANDBANK.LTD
provide highest non-performing loan. In 2018 they provide 7.8% non-performing, so they
contain high liquidity. And IFIC Bank holds the 2nd position of NPL in last 3 years were
5.1%,6.3% & 6.0% But prime bank is the better performer of NPL in 2016,2017 & 2018
were 3.7%,3.8% & 4.3% .and The NPL of NCC bank in 2016 ,2017, 2018 were
5.6%,5.7%& 5.7% which was less better than The NPL of prime bank

11
 Loan/Deposit
The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a bank's
total loans to its total deposits for the same period.
Year 2016 2017 2018
(IFIC)Bank Ltd 88% 92% 93%
PRIMEBANK.Ltd 87% 101% 105%
STANDBANK,Ltd 85% 95% 94%
NCCBANK.Ltd. 97% 94% 92%

Loan/Deposit
120%
105%
101%
100% 95% 94% 97%
92% 93% 94% 92%
88% 87% 85%
80%

60%

40%

20%

0%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: Here bigger loan provide PRIMEBANK.Ltd. in 2016,2017 &2018 they

provid e87%,101% & 105% loan in different sector. So in the liquidity basis prime bank
holding much liquidity than other banks.NCC bank hold the 2nd position of Loan/deposit
in 2016,2017&2018 were 97%,94%& 92% which is higher than standard banks
loan/deposit 85%,95%&94% and which is higher than IFIC bank loan to deposit ratio
were88%,92% &93%

12
 Cash and Govt Securities/Assets

The cash asset ratio is the current value of marketable securities and cash, divided by the
company's current liabilities. Also known as the cash ratio, the cash asset ratio compares
the amount of highly liquid assets (such as cash and marketable securities) to the amount
of short-term liabilities. This figure is used to measure a firm's liquidity or its ability to
pay its short-term obligations.

Year 2016 2017 2018

(IFIC)Bank Ltd 7.0% 6.0% 5.6%
PRIMEBANK.Ltd 6.5% 6.4% 6.0%
STANDBANK,Ltd 5.6% 5.6% 4.9%
NCCBANK.Ltd. 6.0% 6.1% 5.5%

Cash and Govt Securities/Assets

8.0%
7.0%
7.0% 6.5% 6.4%
6.0% 6.0% 6.0% 6.1%
6.0% 5.6% 5.6% 5.6% 5.5%
4.9%
5.0%

4.0%

3.0%

2.0%

1.0%

0.0%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: In this chart PRIMEBANK.Ltd has better Cash and Govt

Securities/Assets ratio than other bank. In2016,2017 & 2018 prime banks Cash and Govt
Securities/Assets ratio were6.5%,6.4%& 6%, and the bank hold most of cash and govt.
securities/asset comparing to other bank. NCC bank hold the 2nd most cash and govt.
securities/asset in 2016,2017& 2018 were 6%,6.1%&5.5% which is higher than IFIC
banks cash and govt. securities/asset 7.0%,6.0%,&5.6% but standard bank holds the
lower position os cash and govt. securities/asset in 2016.2017 &2018 were 5.6%,5,6%
&4.9%

13
 EPS

The higher the earnings per share of a company, the better is its profitability. While calculating the EPS, it
is advisable to use the weighted ratio, as the number of shares outstanding can change over time.

Year 2016 2017 2018

(IFIC)Bank Ltd 2.15 1.73 1.17
PRIMEBANK.Ltd 2.13 1.07 1.93
STANDBANK,Ltd 1.44 1.56 1.44
NCCBANK.Ltd. 2.35 2.09 2.07

EPS(Taka)
2.50 2.35
2.15 2.13 2.09 2.07
2.00 1.93
1.73
1.56
1.50 1.44 1.44
1.17
1.07
1.00

0.50

0.00
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation:
In this chart NCCBANK.Ltd. Has higher the earning per shear than other bank. In 2016, 2017 &2018
NCCBANK.Ltd.EPS were2.35%, 2.09%& 2.07%but other bank PRIMEBANK.Ltd(2.13%,1.07%
&1.93%) STANDBANK, Ltd (1.44&,1.56%&1.44%)(IFIC)Bank Ltd(2.15%,1.73% &1.17%) EPS were
accordingly, 1.44, 1.93 and 1.17. That were lower than. NCCBANK.Ltd. banks EPS.

14
 Book value of equity/Market capitalization

Market value of equity is the total dollar value of a company's equity and is also known
as market capitalization. This measure of a company's value is calculated by multiplying
Market value by the total number of outstanding shares.

Year 2016 2017 2018

(IFIC)Bank Ltd 20.9 18.0 10.9

PRIMEBANK.Ltd 17.7 24.9 17.8

STANDBANK,Ltd 18.3 25.8 19.4

NCCBANK.Ltd. 12.6 17.8 15.9

Book value of equity/Market capitalization

30.0

25.8
24.9
25.0
20.9
20.0 19.4
18.0 17.7 17.8 18.3 17.7
15.9
15.0
12.6
10.9
10.0

5.0

0.0
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation:
In this chart the market capitalization of standard bank in 2016, 2017 & 2018 were 18.3, 25.8
&19.4 which is higher compare to other bank. Market capitalization of prime bank in last 3 years
holds the 2nd position among the bank were 17.7, 24.9&17.8 which is higher than the Market
capitalization of IFIC bank in last 3 year were20.9,18.0 & 10.9 but NCC bank holds the lowest
position on market capitalizations in last 3 year

15
 Cost-to-Income Ratio

In finance, the cost-to-income ratio (also called the cost/income ratio or C/I ratio) is the measure

of the costs of running a company in relation to its operating income. It is an important financial
tool, particularly when evaluating banks

Year 2016 2017 2018

(IFIC)Bank Ltd 61% 54% 58%
PRIMEBANK.Ltd 54% 56.% 55.7%

STANDBANK,Ltd 47% 49% 53%

NCCBANK.Ltd. 41% 43% 41%

Cost-to-Income Ratio
70%
61%
60% 58.3%
54.2%
56.0%55.7%
54% 52.5%
50% 47% 49.0%
43.3%
41% 40.6%
40%

30%

20%

10%

0%
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation
In this chart the cost to income ratio of IFIC bank in 2016,2017 &2018 were 61%,54% &58%
which is higher compare to other bank the last 3years of cost to income ratio of prime bank were
54% 56% & 55% which is lower than IFIC bank but higher than standard bank(47%,49%&53%)
and NCC bank(41%,43% &41%) that is the lowest among the bank in terms of cost to income
ratio

16
 Employee Productivity Ratio

Year 2016 2017 2018

(IFIC)Bank Ltd 8,514,370,128 9,872,284,113 8,756,879,811

PRIMEBANK.Ltd 12,168,527,890 12,702,142,568 12,897,202,984

STANDBANK,Ltd 6,100,550,309 6,514,937,199 7,142,760,500

NCCBANK.Ltd. 7,656,033,953 8,895,977,682 10,503,001,003

Employee Productivity Ratio

14,000,000,000
12,897,202,984
12,702,142,568
12,168,527,890
12,000,000,000
10,503,001,003
9,872,284,113
10,000,000,000
8,756,879,811
8,514,370,128 8,895,977,682
8,000,000,000 7,656,033,953
7,142,760,500
6,514,937,199
6,100,550,309
6,000,000,000

4,000,000,000

2,000,000,000

0
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation:
In this chart employee productivity ratio of prime bank in 2016,2017 & 2018 were
12,168,527,890, 12,702,142,568 & 12,897,202,984 which ic higher than other bank.IFIC bank
holds the 2nd position in employee productivity ratio. And the 3rd and 4th position hold by NCC
bank and standard bank

17
 Standard Deviation of EPS

Year 2016 2017 2018

(IFIC)Bank Ltd 0.40 0.49 0.39
PRIMEBANK.Ltd 0.50 0.56 0.61
STANDBANK,Ltd 0.48 0.07 0.09
NCCBANK.Ltd. 0.33 0.16 0.02

Standard Deviation of EPS

0.70
0.61
0.60 0.56
0.49 0.50
0.50 0.48
0.40 0.39
0.40
0.33
0.30

0.20 0.16

0.10 0.07 0.09

0.02
0.00
(IFIC)Bank Ltd PRIMEBANK.Ltd STANDBANK,Ltd NCCBANK.Ltd.

2016 2017 2018

Interpretation: In this chart the standard deviation of eps in 2016,2017 &2018 of prime bank
were respectively 0.50,0.56 & 0.61 This is higher thsn other bank.IFIC bank hold the 2 nd position
of standard deviation of EPS(0.40,0.49&0.39) this is higher than the standard deviation of EPS
of standard bank and NCC bank is the lowest position in terms of standard deviation of EPS

18
 Conclusion
In conclusion we can say that NCC bank LTD is the better performer in terms of profitability
ratio. But In terms of credit risk prime bank is the better performer than other bank because their
NPL ratio is low and loan to deposit ratio is high compared to other bank. Again in terms of
efficiency ratio prime bank is the better performer than other bank. In last ific bank is the better
performer in terms of liquidity ratios compare to other bank

Financial ratios are one of the most common tools of managerial decision making. Financial
ratios remain useful tools for both internal and external evaluations of key aspects of a bank’s
performance. Any bank manager should be able include liquidity ratio, as well as operating ratio,
profitability ratio and solvency ratio that can be used to analyze performance in banks. A
working knowledge and ability to use and interpret ratios remains a fundamental effective aspect
the bottom line is financial ratios are essential in any organization as it assists in making
decisions.

19
 Reference
http://dsebd.org
http://www.ificbank.com.bd
https://www.primebank.com.bd
http://www.standardbankbd.com
https://www.nccbank.com.bd
https://www.google.com/
https://www.lankabangla.com
Annual Report of 2016, 2017, 2018

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