Report on Standard Bank Ltd.

Overview:
Standard Bank Limited (SBL) was incorporated as a Public Limited Company on May 11, 1999
under the Companies Act, 1994 and the Bank achieved satisfactory progress from its
commercial operations on June 03, 1999. SBL has introduced several new products on credit
and deposit schemes. It also goes for Corporate and Retail Banking etc. The Bank also
participated in fund Syndication with other Banks. Through all these myriad activities SBL has
created a positive impact in the Market.
Mission: To be the best private commercial bank in Bangladesh in terms of efficiency, capital
adequacy, asset quality, sound management and profitability.
Vision: To be a modern Bank having the object of building a sound national economy and to
contribute significantly to the Public Exchequer.
Corporate governance: We fondly believe that our achievement can only be sustained by
creating effective corporate governance, professionalism among its staff and strictly adhering to
rules and regulations designed in high ethical standard. Our employee Code of Ethics and
Principles of Conduct applies to everyone who works at Standard Bank Ltd, including both
permanent and contractual employees. The Code is supported by a number of more detailed
policies that form part of the Conduct and Ethics Policy Framework, which cover issues such as
anti-bribery, fraud and corruption, equal opportunity, bullying and harassment, conflicts of
interest and work expenses. Our ethical acts eventually turns to the commitments we make to
our stakeholders.
In a nutshell, our business ethics means, choosing the goof over the bad, the right over the
wrong, the fair over the unfair and the truth over the untruth.

Analysis
Current ratio= Current Assets/Current Liabilities

Date As on 31st December 2018 As on 31st December 2017

Current Assets 176,004,354,272 BDT 155,295,423,352 BDT
Current Liabilities 146,060,787,593 BDT 128,228,164,168 BDT
Current ratio 1.20050 1.21086

Standard Bank Ltd has a minor decreased current ratio in 2018 than in 2017. However, while
both are greater than one, it indicates that the bank has the financial resources to remain
solvent in the short-term. However, because the current ratio at any one time is just a
snapshot, it is usually not a complete representation of a company’s liquidity or solvency.
Debt to Asset ratio (DAR) = Total Liabilities / Total Assets

Year 2018 2017

Total Liabilities 180,933,842,691 BDT 162,288,936,884 BDT
Total Assets 195,764,449,747 BDT 175,699,112,385 BDT
DAR 0.92424 0.92367

Given that the debt-to-equity ratio measures a company’s debt relative to the value of its net
assets, a high debt/equity ratio is often associated with high risk; it means that a company has
been aggressive in financing its growth with debt. For Standard Bank Ltd, the DAR at the end of
2018 is slightly greater than that of 2017. Comparing the liabilities and assets of both the
financial years, it shows that the liabilities at the end of 2018 is more than the previous year
and hence a greater DAR, which is not a good sign for the bank in the short term.
Return on Equity (ROE) = Net Income / Shareholders’ Equity

Year 2018 2017

Net Income 2,109,103,400 BDT 2,099,390,808 BDT
Shareholder’s equity 14,830,607,056 BDT 13,410,175,501 BDT
ROE 0.14221 0.15665

Profit margin:
Earning per share:

Year 2018 2017

Earning per share 1.44 1.42

Earning per share is an indicator of how much the shareholders will gain for every share they
have in the bank. The increased EPS in 2018 is a good sign for prospective investors in the bank.
Price Earning ratio:

Year 2018 2017

PER 7.56 4.35

Balance sheet:
 Year 2018 2017
Balance sheet total 378,081,908,578 334,955,573,974

Net profit:

Year 2018 2017

Net profit 1,255,547,301 1,238,450,432

Sustainable Growth Rate (SGR) = Retention Ratio x ROE

Year 2018 2017

Retention ratio 14,830,607,055 13,314,630,329
SGR 2,109,060,629 2,085,736,841