Executive Summary

Banking sectors considered as the broader of national economy. It works the

intermediary between savers and borrowers. Now there are 45 schedule banks in
Bangladesh. Mercantile Bank Limited was incorporated in Bangladesh as a Public
Limited Company with limited liability under the Bank Companies Act 1991on 20
May 1999 and commercial operation on June 1999. The Bank went for public issue of
shares on in 2003 and its shares are listed with Dhaka Stock Exchange and Chittagong
Stock Exchange.

During this short span of time the MBL has been successful to position itself as a
progressive and dynamic financial institution in the country. The MBL has been
widely acclaimed by the business community, from small entrepreneurs to large
traders and industrial conglomerates, including the top rated corporate borrowers for
forwarding-looking business outlook and innovative financing solutions. Thus within
this very short period of time it has been able to create an image for itself and has
earned significant reputation in the country’s Banking Sector as a bank with vision.
Financial Statement Analysis is a method used by interested parties such as investors,
creditors, and management to evaluate the past, current, and projected conditions and
performance of the firm. This report mainly deals with the in sight information of
Mercantile Bank Limited. In the current picture where financial volatility is end emic
and financial in tuition is becoming popular, when it comes to investing ,the sound
analysis of financial statements is one of the most important elements in the
fundamental analysis process

The main objective of this report is to evaluate the financial performance of Mercantile
Bank Limited. The report focus also bank’s all key areas like capital adequacy, quality
asset growth and strong liquidity thereby ensuring sound revenue. Report analysis find
out mercantile bank collect deposit by providing different types attracting deposit
product and provide loan by offering different types of investment product. This report
is all about the operations of Mercantile Bank Ltd. and its main concentration is all
about the Financial Statement Analysis. The first part of the report contains origin,
objective, methodology, scope, limitations of preparing the report. Secondly, it includes
a general description about mercantile bank limited to get a clear view about the bank. It
contains overview, vision, mission, structure, organogram, services, etc of mercantile
bank limited. Thirdly, it describes the Ratio Analysis it Contains Liquidity Ratio,
Leverage Ratio, Profitability Ratios, Activity Ratios & Market Ratios. Fourthly, this
part explains Performance Evaluation Or Common size Analysis In Four Years of
Mercantile Bank. At the end of this report I point out some of the findings and
recommendations were given to evaluate the position of the bank and how it can
perform better in the competition.