Financial Performance Analysis of Listed Commercial Banks in Bangladesh

Abstract

The financial performance analysis of banks is important for all users: depositors, bank managers, regulator body such as Bangladesh Securities & Exchange Commission. The aim of this paper is to find financial characteristics revealed by different financial ratios. The report puts emphasis on the insights of financial position of banks. It gives general information about banks, company information, mission and objectives and their overall market position. The paper will then discuss the state of the market, including historic performance and future outlook. A total of four commercial banks are financially analyzed. This paper also provides theoretical aspects of financial performance analysis. The study finds that the bank with higher total assets, total deposits, profit after tax, total credit does not always ensure better profitability performance. It includes an analysis of their financial strengths and weaknesses, and their overall level-of performance within banking sector. Finally, the paper concludes with a value-based financial analysis of banking sector, and provides some recommendations for improved financial performance. Upon completion of this paper, the reader should have a very broad understanding of the overall banking sector as well as an in-depth knowledge of financial standings.