Gazi Ashiqur Rahman

ID: 161-11-282
43th Batch, Major Finance
Department of Business Administration
Faculty of Business & Entrepreneurship
Daffodil International University
 INTERNSHIP REPORT
On
PERFORMANCE EVALUATION:
A STUDY ON TRUST BANK LIMITED
 Objectives
 To measure the performance of Trust bank.
 To find out the strength and weakness of the bank in financial aspect in particulars.
 To recommend some measures for better functioning of financial system of the
bank.
 Methodology

Collection of Data:

The sources include:

 Annual Report of the bank.
 Insight – Monthly Magazine of the bank.
 Books and Web sites.
 Limitations

 Primary and unpublished data were not considered for the study.
 The accuracy of the data cannot be ascertained mainly as secondary information
gathered from annual reports.
 The profundity of analysis is limited to data gathered from various sources.
 Camels analysis cannot be utilized in this report.
 Missions & Visions
 Fast customer service.  Build long-term sustainable financial
institutions Maintain sustainable
 Maintain sustainable growth. growth.
 Follow strong business ethics.
 Offer quality financial services with
&  Provide the best value to all
stakeholders
latest technology.  The highest level of compliance.
 Provide smooth return on
shareholder’s equity.
 Financial Statements Analysis
 Internal financial analysis
 External Financial Analysis

Basics of Financial Statements

A balance sheet
An income statement
Cash flow statement and
Statement of shareholders’ equity
 Basics of Financial Statements

 A balance sheet
 An income statement
 Cash flow statement and
 Statement of shareholders’ equity
 Ratio Analysis
 Liquidity Ratio
 Activity Ratio
 Debt Ratio
 Profitability ratio
 Liquidity Ratio
 Current Ratio:

Year Ratio Ratio

1.07
2017 1.05 :1
1.07
1.06 1.05
2016 1.01 :1 1.05 1.04
1.04 1.03
2015 1.04 :1 1.03
1.02 1.01

2014 1.03 :1 1.01

1

2013 1.07 :1 0.99

0.98
2017 2016 2015 2014 2013
 Liquidity Ratio
 Acid Test Ratio:

Year Ratio
Ratio
0.4 0.36
2017 0.34 :1 0.34
0.35
0.33
0.35
0.29
2016 0.36 :1 0.3

0.25
2015 0.35 :1 0.2

0.15
2014 0.29 :1
0.1

2013 0.33 :1 0.05

0
2017 2016 2015 2014 2013
 Activity Ratio
 Total Asset Turnover Ratios:

Year Ratio Ratio

6.00%
2017 4.23% 5.34%
5.00%
4.48%
4.23%
2016 3.48% 3.95%
4.00%
3.48%

2015 3.95% 3.00%

2.00%
2014 5.34%
1.00%
2013 4.48%
0.00%
2017 2016 2015 2014 2013
 Activity Ratio
 Operating Expenses to Revenue (OER):

Year Ratio
Ratio
2017 57.16% 70.00% 62.94%
57.16% 57.81%
60.00%
2016 62.94%
50.00% 44.00%
2015 57.81%
36.04%
40.00%

2014 44.00% 30.00%

2013 36.04% 20.00%

10.00%

0.00%
2017 2016 2015 2014 2013
 Debt Ratio
 Debt Ratio:
Year Ratio

0.95
Ratio
2017 0.945
0.95 0.95
0.95
2016 0.947 0.94

0.94 0.94
2015 0.936
0.93
0.93
2014 0.927 0.93 0.93

0.92
2013 0.930
0.92
2017 2016 2015 2014 2013
 Debt Ratio
 Times Interest Earned Ratio:

Year Ratio
Ratio
1.6
2017 1.16
1.4 1.37 1.4
2016 1.10 1.2
1.16 1.2
1.1
1
2015 1.20 0.8

0.6
2014 1.37
0.4

0.2
2013 1.40
0
2017 2016 2015 2014 2013
 Profitability Ratio
 Return on Asset:

Year Ratio Ratio

1.60%
2017 0.60%
1.40%

1.20%
2016 0.30%
1.00%

0.80% 1.50%
2015 0.75% 1.31%
0.60%
0.75%
2014 1.31% 0.40% 0.60%

0.20% 0.30%

2013 1.50% 0.00%

2017 2016 2015 2014 2013
 Profitability Ratio
 Return on Equity:

Year Ratio Ratio

25.00%

2017 10.61% 22.27%

20.00%
18.57%
2016 7.00%
15.00%
13.14%
2015 13.14% 10.00% 10.61%

7.00%
2014 18.57% 5.00%

2013 22.27% 0.00%

2017 2016 2015 2014 2013
 Profitability Ratio
 Earnings per Share:

Year EPS
4
EPS
3.5
2017 2.15 3.5
3.14
3
2.75
2016 1.34 2.5
2.15
2
2015 2.75
1.5 1.34

2014 3.14 1

0.5

2013 3.5 0
2 01 7 2 01 6 2 0 15 2 0 14 2013
 Findings
 The liquidity condition of Trust Bank Limited is quite satisfactory. Its liquidity ratio is closer to its
standard level and it has a higher debt-to-equity ratio than total assets, thus posing a risk on average.
 The bank's ROA has increased to 0.60% in 2017 than the year 2016 which is within moderate
satisfactory level because it was greatly improved in the year 2013 and 2014.
 The bank's arrival on value is in a decreasing pattern. In the earlier year 2013 and 2015, the ratio was
exceptionally satisfactory. It decreased in 2016 however in 2017 it increased to 10.61%.
 It's operating expenses have increased to 8731.92 million from 7482.67 million in 2017 because of the
increase of branches and workers. And for this its net interest margin, net operating margin are also
decreasing.
 The obligation ratio has increased step by step. The Debt ratio measures, the proportion of total assets
provides by the association's loan bosses. Their obligation ratio was increasing to 0.945 in 2017 that
indicates a negative sign for the bank.
 Recommendations
■ Increase operational efficiency by reducing cost and wastage.
■ TBL should be considered that the deposit is showing a lower tendency to change.
■ To concentrate more to increase return on asset and return on equity ratios by ensuring maximum
utilization of its assets.
■ To ensure the continuous upward movement of net interest income by raising efficiency and proper
utilization of deposit.
■ The evaluation process and form of training needs to be further modernized.
■ The number of branches can be increased to create employment opportunities.
■ Banks should use regular ratio analysis and take measures to improve the unadjusted ratio.
■ Appoint qualified, trained and experienced management personnel.