Letter of Transmittal: Financial Performance Analysis
Letter of Transmittal: Financial Performance Analysis
Letter of Transmittal: Financial Performance Analysis
Dear Ma’am,
This is my pleasure to present you my internship report titled- Financial performance analysis of
Jamuna Bank Limited. The internship was a compulsory issue for successfully completion of my
BBA program. To fulfill this requirement I worked in Jamuna Bank Limited, Chistia market
branch (near elephant road) under different sector.
The internship program had given me a great opportunity to learn about a well-known private
banking organization in Bangladesh. It was a great help to gather knowledge about practical
official environment prior to perform into the real job field.
Despite the limitations during the compilation of the study my best effort was given to fulfill all
the requirements to satisfy your positive review. I will be grateful to you if you accept the report.
Yours Sincerely,
________________
Atik Hasan
ID: B-140203083
Session: 2014-15(9th Batch)
Department of Finance
Faculty of Business Studies
Jagannath University,
Dhaka-1100
At first, all praises to almighty Allah who has created me and has given me opportunities and
strength to work with people.
This internship study is an accumulation of many peoples’ endeavor. At the beginning I want to
express my sincere gratitude to my honorable internship supervisor Mrs. Mokta Rani Sarker, a
faculty member of department of Finance, Jagannath University, Dhaka. I’m deeply indebted to
her whole hearted supervision during the internship period. Her valuable suggestions and
guidance helped me a lot to complete this study with the appropriate manner and formality. The
time and effort he has given to me was a great help in the way to complete the study.
I would also like to show my respect to all the officers and stuffs at Jamuna bank Chistia market
branch. It would be very hard for me to mention their name specifically but a few of them was
very helpful for me that I feel bound to mention few of their names like my direct supervisor was
Yousuf Ifthakhar (SEO), Md. Rafiqul Islam (AVP & Manager operation) and Shamim Ahmed
Sagor (SAVP & Manager)
Apart from all I humbly thanks to all of my seniors and friends who support me for completing
my Internship Report and it was an admirable privilege for me and truly honored to worked with
them throughout my Internship Program.
The internship report entitled on “Financial Performance Analysis of Jamuna Bank LTD” has
been submitted to the office of chairman, in partial fulfillment of the requirements for the Degree
of Bachelor of Business Administration (BBA) from the Department of Finance, Jagannath
University, on 24th April, 2019 by Atik Hasan with Id: B-140203083. The report has been
accepted and may be presented to Internship Defense Committee for evaluation.
Any opposition, suggestion made in this report is entirely that of the author of the report. The
university neither admits nor rejects any of these opinions or suggestions.
…………………………
I hereby, declare that this report entitled on “Financial Performance Analysis of Jamuna Bank
LTD” has been prepared under the guidance of Mokta Rani Sarker, Assistant Professor of
Department of Finance, as a requirement for the accomplishment BBA from the Department of
Finance, Jagannath University. My report neither fully nor partially has ever been submitted for
the award of any other degree to either this university or any other university. This report has
been prepared only for academic purpose.
………………………….
Atik Hasan
ID No: B-140203083
Session: 2014-15(9th Batch)
Department of Finance
Jagannath University
Ratio analysis is structural and logical way to present overall financial performance of a
financial institution. Successful bank must be identified for the interest of the depositors and the
country as a whole. The bank which has better financial condition, less risky and more profitable,
is identified as a successful bank.
The current position of JBL is not much satisfactory. The net profit margin of 2017 was less
than the previous year 2016. In 2017 it was (54%), in 2016 it was (70 %). The ROE was
increasing in 2017 and comes to the point of (13.43 %), 2016 it was (11.33%). But it has a point,
ROE is increasing because of financial leveraged is increased. There is a decline in the Interest
income to Total asset of Jamuna bank from 2013 to 2017. It has decreased from .085 to .058 in
2017. It implies that the bank has not been able to efficiently utilize its interest income to total
asset for the last five years. The ratio of earning asset to total asset of Jamuna Bank is showing
an increasing trend. In 2016 earning asset to total asset was 69.64% and its increasing in 2017
was 74.92%. It increased because the increase assets that are directly generating income, such as
interest-generating investments or income-generating rentals .It indicates that bank performance
outcome is up to the mark.
Financial soundness and management skill of JBL is quite good boosting up at a very
satisfactory level. The top level authority, management team and executives of the bank
are concern about their investment, market expansion and more innovative and effective
financial performance to make JBL perform better in future.
Executive Summary V
References 43
Appendix XLIV-XLV
Lists of Table
Table No Contents Page No
I have worked in various Department of Jamuna Bank Ltd, Chistia Market Branch (Near
Elephant Road). In this report, I will try to make an overall analysis on all activities of Jamuna
Bank Ltd specially focuses on Financial prospect of the whole bank. For evaluating a 3rd
generation bank I chose Jamuna Bank Limited and evaluate its financial performance from 2013
to 2017 using several ratios.
To prepare a report gathering data is very important. The information was collected from
secondary sources of data. Regarding the information required was collected within the
organization from the Corporate Division of Jamuna Bank Limited.
Banks have been playing an important role in economic development and contributing
immensely to build the country. Banking sector is fast expanding in our country because of
globalization and reform of private sector. To survive as a key player in this highly competitive
and complex business environment a bank should develop its business focusing the customer’s
satisfaction.
As a student, I have learned about a bank. I also have learned the report writing, as a great deal
of theory is included in this report. It will be also benefited for the people who are interested to
know about JBL. Here I try to evaluate the researcher provides information about the strengths,
weakness, opportunities and threats of the organization. Those who looking for the information
about Financial Performance Analysis of JBL they might get help from this report. The study
explores the present market scenario of Jamuna Bank and future market growth prospects in
Bangladesh.
Altogether the internship period in the bank was not free from limitations. I faced some problems
during the study, which I am mentioning below:
The duration of the internship/ study is only 3 months. Banking is a vast phenomenon and
a huge concept encompassing a great variety of divergent field of studies. It is quite
impossible to grasp all the relevant matters within 3 months and make a report on it. Only
a bird’s eyes view has been presented in the report due to the time constraint.
There were various types of information’s that the bank officers cannot disclose due to
the security and other corporate obligations.
A business organization cannot reveal all its data and information to public because of its
policy of secrecy. So all these secret matters have not been possible to collect and to
incorporate in the report which may result in less acceptability.
JBL undertakes all type of banking transactions to support the development of trade and
commerce in the country. JBL‟s services are also available for the entrepreneurs to set up new
ventures and BMRE for industrial units. The Bank gives special emphasis on Export, Import,
Trade Finance, SME Finance, Retail Credit and Finance to Women Entrepreneurs.
At present the Bank has real-time Online banking branches (of both Urban and Rural areas)
network throughout the country having smart IT-backbone. Besides traditional delivery points,
the bank has ATMs of its own, sharing with other partner banks and consortium throughout the
country.
The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with
transaction hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday, Saturday
and government holidays. To provide clientele services in respect of International Trade it has
established wide correspondent banking relationship with local and foreign banks covering major
trade and financial center at home and abroad.
2.2 Values
Customer
Harmony Fairness
focus
Respect for
Integrity Committment
the individual
Business
Quality Teamwork
ethics
The main responsibility of Jamuna Bank Limited is to provide financial solution by considering
different socio-economic factor. It has been playing an important role for the economic growth
of this country. By considering all the people from different segments it has been launching wide
variety of products and services according to the needs of the people. Jamuna Bank Limited is
now offering the following products to its customers.
Service of JBL
2.3.4 Loan product:
Auto loan
Any purpose loan
Personal loan
salary loan
doctors loan
education loan
overseas job loan
ATM
SME & mobile banking service
Mobile financial service
Environmenal
Social and
GovernanceI
Issue
Creating Responsible
Shared Value Investment
Corporate
Sustainability
Acountability
Jamuna Bank Foundation has been playing pioneer role in the CSR activities since its inception
in the year-2007. Over the past 11 years Jamuna Bank Foundation (JBF) has played important
role in the field of Education & Health of underprivileged/destitute segment of the society,
Disaster Management, Environment, Sports, Art and Culture etc. to ensure economic
development of the Country. Now shown of all activities:
Environmental Management
700 Plants of different species were provided among the people of Sathia,Pabna,2017
Contributing towards the development of Bangladesh sports.
Disaster Management
Donated tk.11 crore to prime minister relife fund to support helpless Rohingya refugees and for
assistance of destitute people of the society in 2017
2500 Relief package,worth more than 50 lac, were distributed among Rohingya refugees at own
initiative of JBL in 2017
Financial performance analysis is the process of identifying the financial strengths and
weaknesses of the firm by properly establishing the relationship between the items of balance
sheet and profit and loss account. It also helps in short-term and long term forecasting and
growth can be identified with the help of financial performance analysis. The analysis of
financial statement is a process of evaluating the relationship between the component parts of
financial statement to obtain a better understanding of the firm’s position and performance.
3.2 Objectives
An analysis of financial performance can be possible through the use of one or more tools /
techniques of financial analysis:
Ratio Analysis
Ratio analysis is used to evaluate relationships among financial statement items. Ratio analysis is
a diagnostic tool that helps to identify problem areas and opportunities within a company. Ratio
analysis is very important for every business, because by calculating ratio analysis we can
understand the business position, business strength and weakness. By knowing this information,
management can takes its necessary steps to organize their goal.
Every analysis does involve the use of various statistical techniques. Some of the important
statistical techniques which are suitable for the financial analysis those are measure of central
tendency, measure of dispersion.
To assess whether the resources of the firm are used in the most efficient manner
Whether the financial condition of the firm is sound
To determine the success of the company’s operations
Appraising the individual’s performance
Calculate the interest income to total assets ratio by using this equation:
Interest income
Ratio of Interest income to total assets=
Total assets
Normally the higher this ratio the better indicating the bank is earning a high interest rate or the
proportion of interest earning assets to total assets is high or both of these effects. Too high of
interest income to total assets ratio would be attributed to the high interest income (rate) derived
from high risk loans (subject to default).Also, if the high interest income is being generated by
too high a proportion of assets in loans that could stem from lack of liquidity. That is, the bank
should have a reasonable amount of cash and cash like securities (easily converted to cash such
as Treasury bills) as part of their total assets to meet withdrawal needs. If the interest income to
total assets ratio is too low that usually is from earning low interest income (rate) and/or too little
lending. This ratio refers to the interest earned on the total assets used for this purpose to
determine whether the rate is good, too high, or too low in order for the responsible management
to decide whether to continue leaving these assets as is or use them differently.
Securities
Ratio of securities to total assets =
Total assets
Of all the assets that a company owns (referred to as total assets), analysts want to know what
percentage of them are actually generating income. Earning assets usually include any assets that
are directly generating income, such as interest-generating investments or income-generating
rentals, but in some cases, they include other forms of assets that directly contribute to income,
such as machinery, computers, or anything that is directly involved in producing goods and
services that will be sold to customers.
Calculate the Ratio of earning assets to total assets by using this equation:
Earning asset
Ratio of earning assets to total assets =
Total assets
Calculate the Ratio of current deposits to total liabilities by using this equation:
Current deposit
Ratio of current deposits to total liabilities =
Total liabilities
Calculate the Ratio bank capital to total assets by using this equation:
Bank capital
Ratio of Bank capital to Total asset=
Total asset
Total assets
Per employee asset =
Employees
Calculate the salaries and allowances per employee by using this equation:
Total salaries∧allowance
Salaries and allowance per employee =
Employees
Higher salaries and allowances are considering less employees turnover. And it does also
promote to employees higher motivation. So, it has a less agency conflict.
Loan∧advance
Ratio of Loan and advance to total asset =
Total assets
Calculate the Ratio of interest expense to total assets by using this equation:
Interest expense
Ratio of interest expense to total asset=
Total asset
Calculate Ratio of the interest expense to interest bearing liabilities by using this equation
Interest expense
Ratio of the interest expense to interest bearing liabilities=
Interest bearingliabilities
Calculate the Ratio of non-interest expense to total assets by using this equation:
Non−interest expense
Ratio of non-interest expense to total asset=
Total asset
Calculate the Ratio of provision for loan loss to total assets by using this equation:
Loanloss provision
Ratio of provision for loan loss to total asset=
Total asset
Calculate the Ratio of loan loss to total loan and advances by using this equation:
Loan loss
Ratio of loan loss to total loan and advances=
Total loan∧advances
Calculate the nonperforming loan and advances to total loan and advances by using this
equation:
To avoid mistaken assumptions, a more in-depth knowledge of ROE is needed. In the 1920s the
DuPont Corporation created an analysis method that fills this need by breaking down ROE into a
more complex equation. DuPont analysis shows the causes of shifts in the number. There are two
variants of DuPont analysis: the original three-step equation, and an extended five-step equation.
The three-step equation breaks up ROE into three very important components.
Net profit
margin
RO
E
Financial Asset
leverage turnover
DuPont analysis is a greater tool to understand the broader picture of return on equity of the
company. It gives the view of insight of where the strength of the company lies and where work
needs to be done.
Calculation:
Taking the ROE equation: ROE = net income / shareholder's equity and multiplying the equation
by (sales / sales), we get:
We now have ROE broken into two components: the first is net profit margin and the second is
the equity turnover ratio. Now by multiplying in (assets / assets), we end up with the three-step
DuPont identity:
This equation for ROE breaks it into three widely used and studied components:
We have ROE broken down into net profit margin (how much profit the company gets out of its
revenues), asset turnover (how effectively the company makes use of its assets) and equity
multiplier (a measure of how much the company is leveraged). The usefulness should now be
clearer.
DuPont Analysis gives a broader view of the Return on Equity of the company. It highlights the
company’s strengths and pinpoints the area where there is a scope for improvement. Say if the
shareholders are dissatisfied with lower ROE, the company with the help of DuPont Analysis
formula can assess whether the lower ROE is due to low-profit margin, low asset turnover or
poor leverage.
Interest income
Ratio of Interest income to total assets=
Total asset s
(In million)
Particulars 2013 2014 2015 2016 2017
Interest income
to total assets .085 .074 .069 .057 .058
ratio
Table 4.1 Ratio of interest income to total assets
0.08 0.07
0.07
0.07
0.06 0.06
0.06
0.05
0.04
0.03
0.02
0.01
0
2013 2014 2015 2016 2017
Figure 4.1 (Ratio of interest income to total assets of Jamuna Bank limited 2013-2017)
There is a decline in the Interest income to Total assets of Jamuna bank from 2013 to 2017. It has
decreased from .085 to .058 in 2017. It implies that the bank has not been able to efficiently
utilize its interest income to total asset for the last five years. While a low ratio might indicate
that banks rely on non-interest source of funds. In 2016 ratio of interest income to total asset was
.057 but in 2017 this ratio is little bit increase was .058.but might to say, Bank performance was
not good in interest income to total assets.
Securities
Ratio of securities to total assets =
Total asset s
(In million)
Particular 2013 2014 2015 2016 2017
Figure 4.2 (Ratio of securities to total assets of Jamuna Bank limited 2013-2017)
There is a declining in the securities to total asset in last five years with year 2013 to 2017.In
2015, Jamuna bank securities to total asset ratio was 7.41%.In 2014,securities to total asset is
very low and 2016 is 2.72% and 2017 was 2%. So, it is not good indicator for successful bank.
Earning asset
Ratio of earning asset to total assets =
Total asset s
Ratio of
Earning asset 58.39% 57.15% 69.64% 74.92%
58.69%
to total assets
Table 4.3 Ratio of earning asset to total assets
Figure 2.3 (Ratio of earning asset to total assets of Jamuna Bank limited 2013-2017 )
The ratio of earning asset to total asset of Jamuna Bank is showing an increasing trend. From
2013 to 2017 has increased incredibly. But from 2017 and 2016 it is increasing high than 2015.
In 2016 earning asset to total asset was 69.64% and its increasing in 2017 was 74.92%. It
increased because the increase assets that are directly generating income, such as interest-
generating investments or income-generating rentals .It indicates that bank performance outcome
is up to the mark.
Current deposit
Ratio of current deposits to total liabilities =
Total liabilities
(In million)
Particulars 2013 2014 2015 2016 2017
Ratio of current
deposits to total 88.81% 91.94%
91.39% 93% 92.24%
liabilities
Table 4.3 Ratio of current deposits to total liabilities
(Source: JBL Annual Report: 2013-2017)
Bank capital
Ratio of Bank capital to Total assets=
Total asset s
(In million)
Particulars 2013 2014 2015 2016 2017
Ratio of
Bank capital 7.93% 10.19% 9.31% 10.06%
8.05%
to Total asset
Table 4.5 Ratio of Bank capital to total asset
6.00%
4.00%
2.00%
0.00%
2013 2014 2015 2016 2017
Figure 2.5(Ratio of Bank capital to total asset of Jamuna Bank limited 2013-2017 )
Bank capital to total asset could provide an accurate measure of the appropriate capital level for a
bank. It can show by percentage. For Jamuna bank, Bank capital to asset ratio are increased in
2014 to 2015 is 7.93% to 10.19% but reduce in 2016 is 9.31% .To compare 2016 to 2017 is
lightly increased in 2017 is 10.06%. So, we can say that bank performance is good in 2017.
(In million)
Particulars 2013 2014 2015 2016 2017
Normally this ratio indicates that how much percentage is generating by per employee. In
Jamuna bank this ratio is follow the increasing trend. 2016 in Jamuna bank per employee asset is
69.25%and 2017 it is rising by 76.26%. So, we can say that, this ratio indicate bank performance
also good.
(In million)
Particulars 2013 2014 2015 2016 2017
1200000
1000000
800000
600000
400000
200000
0
2013 2014 2015 2016 2017
Interpretation
This is ratio is very important .If this ratio is higher, it will indicate lower employee turnover.
Higher ratio also promotes employees higher motivation and less agency conflict. For Jamuna
bank, this ratio is increasing every year. In 2016 salaries and allowance per employees was
1019123.95 and 2017 was 1043160 and also indicate that good performance.
(In million)
particular 2013 2014 2015 2016 2017
Loans and 68439.84 79032.30 88428.80 118293.78 143,488.81
advance
Total assets 115121.76 139895.43 143434.02 169180.32 197669.20
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
2013 2014 2015 2016 2017
figure 4.8( Ratio of loans and advance to total assets of Jamuna Bank limited 2013-2017 )
The ratio provides a general measure of a financial position of a company, including its ability to
meet financial requirements for outstanding loan.The lower the capacity ratio of a bank,the better
the position. The ratio is decreasing gradually since 2012 to 2014 is 59.44% to 56.49% and the
bank is performing well. But, In 2015 to 2016 increasing the ratio of loan and advance to total
asset. For Jamuna bank, 2016 loan and advance to total asset was 69.92% and 2017 was 72.59%
( In million)
Particular 2013 2014 2015 2016 2017
0.05
0.04
0.04
0.04
0.03
0.02
0.01
0
2013 2014 2015 2016 2017
figure4.9 (Ratio of interest expense to total assets of Jamuna Bank limited 2013-2017)
Financial Performance Analysis Page 31
Interpretations
Normally the lower this ratio the better indicate the bank. For Jamuna bank, interest expenses are
decreasing that is good sign for this bank. Interest expenses are slightly decreased in every year.
In 2013 to 2017 is .07 to .038, mainly 2016 was .042 and 2017 was .038. So, we can say that
ratio of interest expense to total asset is very good sign for the Jamuna bank.
(In million)
Particulars 2014 2015 2016 2017
Ratio of non-interest
expense to total asset (.0215) (.0238) (.0238) (.0230)
Figure 4.10 (Ratio of non-interest expense to total assets of Jamuna Bank limited 2014-
2017)
Noninterest expenses are associated with employee salaries and benefits, information technology
(IT), rent, telecommunication services, taxes, professional services, marketing and other general
operating expenses. Ideally, this ratio should be as low as possible for the banks. For Jamuna
bank, 2016 Ratio of non-interest expense to total asset is (0.0238) and 2017 was (0.023)
(In million)
Particulars 2014 2015 2016 2017
0.01
0.01
0.01
0.01
0.01
0.01
0
0
0
0
0
2014 2015 2016 2017
Interpretations
Loan loss provision is an expense set aside as an allowance for uncollected loans and loan
payments. For Jamuna bank Ratio of provision for loan loss to total asset comparatively 2016 to
2017 this ratio is.0079 to .0041 is performing well.
4.12 Ratio of non-performing loans and advances to total loans and advances
The ratio can also be expressed as a percentage of the bank's nonperforming loans. Investors can
view NPL ratios to choose where to invest their money; they can view banks with low NPL
ratios as being lower-risk investments.
Calculate the nonperforming loan and advances to total loan and advances by using this
equation:
(In million)
Particular 2013 2014 2015 2016 2017
Table 4.12 Ratio of non-performing loans and advances to total loans and advances
(Source: JBL Annual Report: 2013-2017)
6.00% 5.60%
5.00%
4.01% 3.99%
4.00%
3.00%
2.00%
1.00%
0.00%
2013 2014 2015 2016 2017
figure 4.12(Ratio of non-performing loans and advances to total loans and advances of
Jamuna Bank limited 2013-2017)
Interpretations
The NPL ratio measures the effectiveness of a bank in receiving repayments on its loans.
Investors can view NPL ratios to choose where to invest their money; they can view banks with
low NPL ratios as being lower-risk investments than those with high ratios. For Jamuna bank,
2016 and 2017 non-performing loan and advance ratio is 4.01% to 3.99%. Jamuna bank,
nonperforming loan and advance is performing well.
Net icome
Net profit margin =
Net Interest income (sales)
Total asset
Financial leverage =
Total equity
0.8
0.2
0
2013 2014 2015 2016 2017
Interpretations:
From the table, we can see that Jamuna bank has improved its ROE from 12.84% to 13.43% in
reporting period. ROE is very popular ratio toward the shareholders of any bank. The higher the
percentage is the better for the bank as well as for shareholders. But the ROE of Jamuna bank
shows that the shareholders are receiving decreasing rate of returns in 2013 their ROE was
10.41%.but 2016 to 2017 ROE is 11.33% to increase 13.43%. It’s ROE by improving assets
utilization. Now, things is that when you look at return on equity ,want to make sure that this
ratio is actually increasing due to profit margin and asset turnover because when this is
happening it is very good for the company and it is beneficial for the company. But, when return
on equity is mainly increasing due to leverage then this is not good for the company and should
be careful.
For Jamuna Bank 2017, ROE is actually increased for remain 3 factor.1 st of all the bank have
huge leverage is 12.82% it means the bank using more debt for increasing ROE. On the other
hand, Net profit margin and asset turnover is in average position. So, Bank should be careful
because in this case used the leverage to increase ROE. For Jamuna Bank 2016, ROE is 11.33%
that is less than 2017 is 13.43%. But something is happened there, there is net profit margin is
70% more than 2017 is 54% and financial leverage is 10.72 is less than 2017 is 12.82. That is
obviously good sign for the 2016 to ROE.ROE is high company is profitable.
Findings
Recommendation
Conclusion
After analyzing the financial performance analysis of Jamuna bank limited, I have got some
findings. These findings are completely from my personal point of view. Those are given below:
In 2017 the Net profit margin is 54%, which is decreasing than 2016 which was 70%.
Return on Equity is very low. In 2017 it is 13.43%, in 2016 it was 11.33% and in 2015 it
was 10.41%. It is fluctuated year to year basis.
Ratio of Loan and advance to total asset is increasing in 2017 it is 72.59%, in 2016 it was
69.92%. This state that, the bank loan on asset increasing day by day.
Ratio of interest income to total asset was not good. In 2015 to 2017 decreased in every
year. 2015,it was .069 and 2016 to 2017 was .057 to .058
Ratio of current deposits to total asset were slight fluctuate. In 2015 it was 93% .2016 it
was 92.24% and 2017 was 91.94%
Ratio of Bank capital to total asset can increase over time, in 2015 it was 10.19% ,in 2016
it have little bit fallen become 9.31% and 2017 was 10.06%
There is a decline in the Interest income to total asset of Jamuna bank from 2013 to 2017.
It has decreased from .085 to .058 in 2017. It implies that the bank has not been able to
efficiently utilize its interest income to total asset for the last five years. So, Bank should
be aware of this.
Normally the lower this ratio the better indicate the bank. For Jamuna bank, interest
expenses are decreasing that is good sign for this bank.
.
Net profit margin ratio is decreasing. It is very important to increase the net profit. By
investing the capital more profitable sector, reducing non expenses and payoff the
liabilities properly bank can increase the net profit ratio.
Ratio of earning asset to total asset, It increased because the increase assets that are
directly generating income, such as interest-generating investments or income-generating
rentals. It indicates that bank performance outcome is up to the mark. So, Bank should
maintain this performance very carefully.
Jamuna bank has improved its ROE from 12.84% to 13.43% in reporting period. ROE is
very popular ratio toward the shareholders of any bank. The higher the percentage is the
better for the bank as well as for shareholders. But the ROE of Jamuna bank shows that
the shareholders are receiving decreasing rate of returns in 2013 their ROE was
10.41%.but 2016 to 2017 ROE is 11.33% to increase 13.43%. One thing is happened
there, ROE is increasing for increasing by financial leverage. So, Bank should be careful
because the bank using more debt for increasing ROE.
Jamuna Bank Ltd. started with a vision to be the most efficient financial intermediary in the
country and it believes that the day is not far off when it will reach its desired goal. JBL looks
forward to a new horizon with a distinctive mission to become a highly competitive modern and
transparent institution comparable to any of its kind at home and abroad.
Jamuna Bank Limited has been working with great confidence and competing tremendously with
Government oriented bank, local commercial banks along with the multinational banks also.
Jamuna Bank Limited always tried its level best to perform financially well. In spite of trying to
do well in some aspects Jamuna Bank Limited faced some financial problems from time to time.
Some of the problems were-excessive bad loans, shortage of loans and advances, scarcity of cash
in hands due to vault limit etc. These problems arouse time to time due to economic slowdown,
interest rate fluctuation, emerging capital market, inflation in the money market and so on.
Fighting with all these problems and competing with other banks every moment the bank is
trying to do better to best. If this thing continues we hope that Jamuna Bank Limited will develop
even more in the future.
http://www.jamunabankbd.com/
JBL Annual Report 2013-2017
https://www.investing.com/equities/jamuna-bank-ltd-income-statement
http://lankabd.com/companies/companyDetails.html?
companyId=25&goToHomePageParam=true
https://www.dsebd.org/company%20listing.php
http://shodhganga.inflibnet.ac.in/bitstream/10603/13629/12/12_chapter%202.pdf
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