Contents:

1.Introduction of
Bank Asia
Ayesha Siddika 2.History
ID:2210085727 3.Mission Statement
of Bank Asia
4.Objectives
5.Vertical Analysis
Introduction , History
• Established 28th
september,1999
• Banking Operations 27th
november 1999
• Introduce Islami
Banking 2008
Mission, Objectives ,Vertical analysis
 Contents:
1. Return on assets
Md Foysal Ahmed 2. Return on Equity
ID:2210085746 3. Debt Equity Ratio
4. Non Performing Loans
5. Net Profit Margin
6. Earning Per Ratio
7. Net asset Value per share
 1. Return On Asset (ROA): 2021 2020 2019
0.62% 0.55% 0.50%

2. Return On Equity (ROE) 2021 2020 2019

9.89% 7.81% 8.16%

3. Debt to Equity Ratio 2021 2020 2019

15.02% 13.94% 13.30%

4. Non Performing Loan Ratio 2021 2020 2019

5.14% 3.24% 4.61%

5. Net Profit Margin 2021 2020 2019

9.21% 7.24% 6.42%
6. Earning Per Share 2021 2020 2019
2.32% 1.75% 1.68%

7. Net Asset Value Per Share 2021 2020 2019

23.46% 23.48 % 21.22%
 Contents
1.Cost of Deposit
2.Spread
Mirza Saif Noman 3.Loan Deposit Ratio
ID:2210085709 4.Loan to asset ratio
5.Burden Ratio
6.Price Earning Ratio
Cost of deposit:Interest expense/ average deposit
year Cost of
deposit
2021 3.94%
2020 4.95%
2019 5.67%

Spread: Yield on adveance – cost deposit

Year Spread
2021 3.67%
2020 2.73%
2019 4.52%

Loan Deposit Ratio: Total loans/Total deposit Year Loan Deposit

ratio
2021 81.57
2020 88.53
2019 93.13
Burden ratio: operating expense-net interest income/Average total assets
Year Burden Ratio
2021 0.21%
2020 0.62%
Price earning ratio: Market value per share/EPS 2019 0.67

Year Price Earning Ratio

2021 9.4 times
2020 10.4 times
Loan to asset ratio: Total loans/ Total assets
2019 10.83 times

Year Loan to asset Ratio

2021 69.7
2020 68.9
2019 64.6
Md Minhajul Islam
ID:2210085750 CONTENTS
Findings
 Return on asset was highest in the year 2019 & it was reduced in 2020 and it again increase
in 2021. But in 2020, it slightly decreased to 0.74% which indicates that the bank was less
efficient to manage its resources compared to the previous year.

 Over past few years’ debt to equity ratio is in increasing trend though it decreased a bit in
2019. This higher ratio actually indicates that the bank is dependent more on external lenders
than their own shareholders equity

 Cost of deposit ratio of the bank in 2019 and 2021 was higher due to high interest rate.
Then it came down to a commendable position in 2020. But the bank couldn’t hold the
consistency which resulted in increase of the COD ratio in 2021 because of high interest
expense.

 Loan Deposit Ratio is in increasing trend and it shows that the bank is providing more loans
compared to the % of its assets. It might be riskier for the bank because providing higher
amount of loans will result in increase of liability and liquidity pressure as well.

 In 2020, the market value per share decreased and it came down to 8.68 times which is
not a good sign for the bank. This decreased ratio resulted in issuing lower dividends
compared to the previous year which is 10% in 2019 compared to 12.5% in 2021.
• Spread is the main source of income of a bank. In 2020,
the spread was 5.24% which is the highest among last
five years. In 2019, spread was 3.95% and it increased to
4.34% in 2021 which is a very positive sign for the bank
and it indicates that they are earning more interests
than paying off to the depositors.
• Burden ratio of the bank is 0.70% in 2019 which is higher
than previous year and it indicates that, the operating
expense is so high compared to the net-interest income
which makes the bank less efficient to cover its burden.
Md Ameer Kawser
ID:2210085731 Contents:
Recommendations
•  Bank Asia Ltd. has to be more efficient in managing its resources to
increase their Return on Assets by utilizing the net income effectively.
•  Bank Asia Ltd. should be more rely on their own shareholders equity
to finance their assets to decrease the debt to equity ratio.
•  The bank needs to be more focused on managing their interest
expense to reduce their cost of deposit. They should keep consistency
in maintaining their spread rate.
•  Bank Asia should take wise decision regarding providing loans to the
customers. Their cautiousness will decrease in loan deposit ratio
which will ultimately reduce their liability as well as liquidity pressure.
 The bank should put more emphasize on their non-interest income to
cover operating expenses which will reduce the burden ratio
• Bank Asia Ltd. should recruit more capable &
experiences employees to finance department to
execute the financial plan efficiently.
•  Bank Asia Ltd. should be more focused on
adopting innovative marketing strategy to reach the
customers.
•  Bank Asia Ltd. should maintain errors-free
customer’s record database which will help to
identify the major customer’s facility requirements.