Submitted To:

Dr. Mohammed Belal Uddin

Assistant Professor,
Dept. of Accounting & Information Systems
University of Comilla

Submitted by:
S.L
1
2
3
4
5
6
7

NAME OF STUDENTS
F.M. Golam Kibria Masum
Priya Saha
Md. Shajib Rahman
Balai Chandra Das
Bijoy Kumnar Debnath
Ishrat Jahan
Nizam Uddin

CLASS ID
0906001
0906004
0906012
0906022
0906031
0906032
0906034

Students of 2nd Year 2nd Semester, 4th Batch

Dept. of Accounting & Information Systems
University of Comilla

Letter of Transmittal
May 06, 2012.
To
Dr. Mohammed Belal Uddin
Assistant Professor,
Department of Accounting and Information Systems
Comilla University.
Sub: Submission of Report Paper
Dear Sir,
It is our great pleasure that the opportunity to submit an elaborate Term Paper on
performance analysis of DBBL, as you have authorized us in this semester.We have
observed closely & studies different aspect of the bank.
We tried our best to put meticulous effort for the preparation of this Term paper. Any short
coming or flaw may arise as we are very much novice in this aspect. We will whole heatedly
welcome any clarification & suggestion about any view & conception disseminated in our Term
Paper.

Sincerely Yours
Md. Shajib Rahman
On behalf of the group
Department of Accounting and Information Systems
Comilla University.

ACKNOWLEDGEMENT
One of the most pleasant parts of submitting a Term Paper is the
opportunity to thank them who have contributed for it. This
acknowledgement is no exception.
In the process of preparing this report we received genuine
cooperation in collecting annual report and various Information on
both of the banks from number of individuals whose names are not
possible to mention in this report but we would remember them
with our heart felt appreciation and gratitude.We most sincerely
express our thanks and gratitude to our honorable course teacher
Dr. Mohammed Belal Uddin for giving us this opportunity to
prepare this Term Paper.
And finally, we would like to say that we have tried heart and soul
to prepare this report accurately. However there might be some
errors and mistake, so we seek your kind consideration as we are in
the process of learning.

Executive Summary
Dutch Bangla Bank Ltd. is one of the well-reputed commercial banks of
the country. We really enjoyed the team work. We believe that this will
definitely help us to build our career.
The first section of this report is the introduction part. Introduction part
includes the background of the DBBL, mission, vision and core
objectives, scope of the study. The second section of this report include
financial performance analysis through the ratio analysis and trend
analysis of Dutch -Bangla BANK LTD. Finally a recommendation and
conclusion have been drawn on the basis of the whole discussion.
The aim of the study is to provide a clear conscious about the comparison
of overall performance and risk management system, which will assist
strategy group and the management terms and also shareholders in making
correct decisions as how to penetrate the Bangladesh Banking Company
and how to catch the maximum commercial opportunities in dealing with
Business partners in this country.

CONTENTS

Orientation of the Study

Introduction:
Financial Institutions have historically have been distinguished by the types of services they
provide. In recent years Financial Institutions have diversified their services by creating new
subsidiaries that perform additional services or by merging with other types of financial
institutions.Dutch Bangla Bank Ltd was incorporated in Bangladesh as a banking company. We
have studied about the overall activities of DBBL. This has given us the opportunity to know
more on different aspects of the company. So, we prepare our Term Paper on overall banking
system.

Financial Statement Analysis:

Financial Statement Analysis is the process of understanding the risk and profitability of a firm
(business, sub-business or project) through analysis of reported financial information,
particularly annual and quarterly reports.
Financial Statement Analysis is defined as the process of identifying financial strengths and
weakness of the firm by properly establishing relationship between the items of the balance
sheet and the profit and loss account.

Objectives of the study:

The objective of this study is to have a clear concept and some practical experience about
Financial Statement Analysis Systems of an organization. However, we had some textbook
knowledge but had little in real life, practice so ever.
This report is designed to know more about the overall banking Systems of DBBL and analyze
the ratio of this organization and identify the financial condition of this organization. In
addition, the study seeks to achieve the following objectives.
To identify the activities of DBBL.

 To identify the management system of DBBL.

To identify the objectives of DBBL.
To know the contribution of DBBL in national development.
To know about the process of ratio analysis systems.
To know the trend of the organization performance Analysis of DBBL.

Scope of the study:

In spite of limitations we also enjoyed some facilities to complete our term paper. The
employees whose held a responsible post in all the departments helped us lot. They gave us all
essential data and conversed with us. Our honorable course teacher Dr. Mohammed Belal
Uddin also helped us a lot. He gave us guidelines how to prepare our Term Paper more
attractive and perfect. This bank has given us the opportunity to observe the banking
environment for the first time indeed. We got an opportunity to gather knowledge different
departments of the bank.

Methodology:
The Graphical methods have been use to represent the analysis of the report. The basic research
program is to represent the comparisons of performance analysis of DBBL. Secondary sources
of data have been used for data requirements of there port. Secondary sources of data: Annual
report of Dutch-Bangla Bank and different articles published in the journals & magazines have
been used.
Secondary Sources are:
Annual report of DBBL and IBBL.
Internet website of the Bank.
Banking Journals

Limitations:
Preparing the term paper we have faced some obstructions which are
Lack of proper information in the websites of both of the Bank.
Lack of required information in the annual report of both the bank.

 Lack of necessary information in the journals and official publications of insurance

companies.
Inexperience and time constraint is the limitation restricting this report from being more
detailed.
Secondary data has been collected from the hand books, magazines, which may biased
to the insurance business.

Procedure of the Financial Statement:

Statements, such as comparative statements, schedule of changes in working capital. There are
various methods or techniques that are used in analyzing financial table, common size
percentages, funds analysis, trend analysis and ratios analysis. Following are the most important
tools and techniques of financial statement analysis:1.
Horizontal and vertical analysis ;
2. Ratios analysis.

1. Horizontal and vertical analysis :

Comparison of two or more years data is known as horizontal or trend analysis. Horizontal
analysis is facilitated by showing changes between years in both dollar and percentage
form. Vertical analysis is the procedure of preparing and presenting common size
statements.

2.Ratios analysis :
The ratios analysis is the most powerful tool of financial statement analysis. Ratios mean
simply, one number expressed in terms of another. A ratio is a statistical yardstick by means
of which relationship between two or more various figure can be compared or measured.
Ratios can be found by dividing one number by another number. Ratios show how one
number is related to another.
a) Profitability Ratios :
Profitability ratios measure the results of business operations or overall performance and
effectiveness of the firm. Some of the most popular profitability ratios are as under : Gross profit ratio,
Net profit ratio,
Operating ratio,
Expense ratio,
Return or shareholder investment or net worth,
Returns on equity capital,
Dividend payout ratio,
Earnings per share (EPS) ratio.

b) Liquidity ratios :Liquidity ratios measure the short term solvency of financial position of a firm. Some of
most important liquidity ratios are as follows : Current ratio,
Liquid/Acid/Quick ratio.
c) Activity ratios :Activity ratios are calculated to measure the efficiency with which resources of a firm
have been employed. Following are the most important activity ratios :

Stock turnover ratio,

Receivables turnover ratio,
Average collection period,
Payable turnover ratio,
Working capital turnover ratio,
Fixed assets turnover ratio.

d) Long-term solvency or leverage ratios :Long-term solvency or leverage ratios convey a firms ability to meet the interest costs
and payment schedules of its long-term obligations. Following are the most important
long-term solvency or leverage ratios : Debt-to-equity ratio,
Equity ratio,
Ratios of fixed assets to shareholders funds,
Ratios of current assets to shareholders funds,
Interest coverage ratio,
Over and under capitalization.

Reasons for choosing DBBL:

Dutch-Bangla Bank limited (DBBL) is one of the leading private owned commercial Banks in
Bangladesh. It is incorporated in Bangladesh as a business company.
DBBL is the bank which is working for generating profit by collecting money as a form of
deposits with a low rate of interest rate and supply money on the basis of short term and long
term loan to the business people with a high rate of interest. The actual profit generated gap
between the interest given to depositors and interest taken borrowers. The Bank has been
maintaining its leading position among Private Sector Banks of the country in respect of its
Deposit, Investment & Profitability.

Overview of the Bank

Historical Background of Dutch Bangla Bank Limited:
Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was
an effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and
the Dutch company FMO. DBBL was the first bank in Bangladesh to be fully automated. The
Electronic-Banking Division was established in 2002 to undertake rapid automation and bring
modern banking services into this field. Full automation was completed in 2003 and hereby
introduced plastic money to the Bangladeshi masses. DBBL also operates the nation's largest
ATM fleet and in the process drastically cut consumer costs and fees by 80%. Moreover, DBBL
choosing the low profitability route for this sector has surprised many critics. DBBL had
pursued the mass automation in Banking as a CSR activity and never intended profitability from
this sector. As a result it now provides unrivaled banking technology offerings to all its
customers. Because of this mindset, most local banks have joined DBBL's banking
infrastructure instead of pursuing their own. Even with a history of hefty technological
investments and even larger donations, consumer and investor confidence has never waned.
Dutch-Bangla Bank stock set the record for the highest share price in the Dhaka Stock
Exchange in 2008.

Dutch-Bangla Bank engineers enterprise and

creativity in business and industry with a
commitment to social responsibility. "Profits alone"
do not hold a central focus in the Banks operation;
because "man does not live by bread and butter
alone".

Dutch-Bangla Bank dreams of better Bangladesh,

where arts and letters, sports and athletics, music
and entertainment, science and education, health
and hygiene, clean and pollution free environment
and above all a society based on morality and ethics
make all our lives worth living. DBBLs essence and
ethos rest on a cosmos of creativity and the marvel magic of
a charmed life that abounds with spirit of life and adventures
that contributes towards human development.

Dutch-Bangla Bank believes in its uncompromising

commitment to fulfill its customer needs and
satisfaction and to become their first choice in
banking. Taking cue from its pool of esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a
new era in banking that upholds and epitomizes its vaunted
marquees "YOUR TRUSTED PARTNER."

Nature of Business of Dutch-Bangla Limited:

The bank grew its reputation through social work rather than profits. The bank's conservative
nature, long-term strategies, hefty social donations and technology investments have always led
to modest but steady profits. DBBL has been known to be overly conservative in its banking
practices. Much of the success and strategy has been attributed to the leadership of the founder
chairman, M Sahabuddin Ahmed. Dutch Bangla Bank is noted to be the first and only local
bank in Bangladesh to have an automated banking system. The bank has spent over BDT 2
Billion in automation upgrades (first bank in Bangladesh to do so). This automation took place
in 2003 whereby services of the bank were available uniformly though any branch, ATM and
internet. Banking was a paper based until DBBL, with its wide local network, delivered banking
automation and modern banking services to the masses.

Products And Services:

Products and services offered by DBBL
Retail Banking

Remittance and collection

Import and export handling and financing
Corporate Banking
Project Finance
Investment Banking
Consumer credit
Agriculture Loan
Real time any branch banking
24 Hours Banking through ATM
DBBL-NEXUS ATM & Debit card
DBBL-Maestro/Cirrus ATM & Debit card
DBBL Credit card
Internet Banking
SMS Banking
On line Banking through all Branches

Banking Products
Various deposits:
Savings Deposit Account

Current Deposit Account

Short Term Deposit Account
Resident Foreign Currency Deposit
Foreign Currency Deposit
Convertible Taka Account
Non-Convertible Taka Account
Exporter's FC Deposit (FBPAR)
Current Deposit Account-Bank
Short Term Deposit Account-Bank

Term Deposit
Term Deposit 3 Months
Term Deposit 6 Months
Term Deposit 12 Months
Term Deposit 12 Months
Term Deposit 24 Months

Term Deposit 24 Months 1 Year Payout

Term Deposit 36 Months
Term deposit 36 Months 6 Months Payout
Term Deposit 36 Months 1 year payout

Term Deposit above 36 Months

Monthly Term Deposit Banks
Term Deposit 3 Months Banks
Term Deposit 6 Months Banks
Term Deposit 12 Months Banks
Table-4.1: Term deposit

Loan & Advances

Loan against Trust Receipt

Transport Loan
Consumer Credit Scheme
Real Estate Loan (Res. & Comm.)
Loan Against Accepted Bill
Industrial Term Loan
Agricultural Term Loan
Lease Finance
Other Term Loan
FMO Local currency Loan for SME

 FMO Foreign currency Loan

Cash Credit (Hypothecation)
Small Shop Financing Scheme

ATM Services
We can find DBBL ATMs beside our home, in our office premise, nearby market, university,
college & school premises, Airport, Railway stations etc., throughout the country. Using any of
the DBBL ATM pools any where in the country, you can perform the following:
Account balance enquiry
Cash withdrawal 24 hours a day, 7 days a week, 365 days a year
Cash deposit to a certain number of ATMs any time
Mini statement printing
PIN (Personal Identification Number) change
All the ATMs can accept DBBL-NEXUS ATM / POS card, DBBL Maestro/Cirrus Debit card
and DBBL Credit card
PRODUCTS

NAME

CUSTOMERS

CHARGE

ATM

NEXUS Debit Card

All A/c Holders

Yes

ATM

Maestro debit Card

All A/c Holders

Yes

ATM

Maestro Debit Card

All A/c Holders

Yes

ATM

DBBL Credit Card

Limited

Yes

Internet Banking

All A/c Holders

Yes

SMS Banking

All A/c Holders

Yes

Table 4.3: ATMs of DBBL

Treasury
DBBL is well equipped for treasury operation through subscribing Reuters's terminal and
operating in SWIFT network. It is also well equipped with competent human resources for
efficient dealing.
DBBLs treasury quotes competitive exchange rate for major currencies:
Spot Sale/Purchase
Forward Sale/Purchase
Money market Inter- bank & Corporate
SWAPS

Account Service
DBBL provides all the accounts services as prescribed by the guidelines of Central Bank
(Bangladesh Bank). DBBL offers competitive interest rate and provides premium quality
services for the accounts. Account services are:
Foreign Currency Account
Non-Resident Foreign Currency Deposit Account (NFCD)
Resident Foreign Currency Deposit Account (RFCD)
Convertible and Non-Convertible Taka Account

Foreign Trade
DBBL extends finance to the importers in the form of:
Opening of L/C (Foreign/Local)
Credit against Trust Receipt for retirement of import bills.
Short term & medium term loans for installation of imported

Import Finance
DBBL extends finance to the importers in the form of:
1. Opening of L/C
2. Credit against Trust Receipt for retirement of import bills.

Export Finance
1. Pre-Shipment Finance
Pre-Shipment finance in the form of:
I) Opening of Back-to-Back L/C
II) Export Cash Credit

2. Post-Shipment Finance
Post-Shipment finance in the form of:
I) Foreign/Local Documentary Bills Purchase
II) Export Credit Guarantee
III) Finance against cash incentive

Foreign Remittance
DBBL provides premium quality service for repatriation and collection of remittance with
the help of its first class correspondents and trained personnel. By introducing on-line banking
service and becoming a SWIFT Alliance Access Member, which enable its branches to send
and receive payment instruction directly, which helps provide premium services. Remittance
services provided by DBBL are:
Inward Remittance: Draft, TT
Outward Remittance: FDD, TT, TC and Cash (FC)

Western Union
Western Union Financial Services Inc. U.S.A. is the number one and reliable money
transfer company in the world. This modern Electronic Technology based money transfer
company has earned world wide reputation in transferring money from one country to another
country within the shortest possible time. Dutch-Bangla Bank Limited has set up a
Representation Agreement with Western Union Financial Services Inc. U.S.A. as on 14th
February 2006.

DBBL Internet Banking

DBBL Internet banking enables customer to access his/her personal or business accounts
anytime, anywhere from home, office or when traveling. Internet Banking gives customer the

freedom to choose his/her own banking hours. It can save time, money and effort. It's fast, easy,
secure and best of all. Using any of the DBBL ATM pools anywhere in the country, you can
perform the following:
Securities with DBBL Internet Banking
A/c Opening & Accessing Internet Banking
Internet Banking Features
Terms & Conditions of Internet Banking

FINANCIAL PERFORMANCE OF THE BANK

Financial Performance of the DBBL:
Despite volatile economic atmosphere of the country, the Bank performed well in respect of
deposit mobilization and profit earning during the year under review. The Bank was able to
harvest the result of its efforts to enhancing quality of assets and recovery of dues from default
borrowers.

Share Capital
During the year 2011 authorized capital of the Bank was Tk. 4000.00million. The paid-up
capital stood at Tk. 2000.00 million. In the year 2010, the authorized capital was Tk. 4000.00
million and the paid-up capital was Tk. 2000.00 million.

Investment
Investment figure of the bank On December 31, 2011 stood Tk. 10,897.7 million as against
Tk.11001.6 million 2010. The following graph shows the investment of DBBL during 2007 to
2011.

12,000.00
10,000.00
8,000.00

Investment(fi
gure in
million)

6,000.00
4,000.00
2,000.00
0.00
2007

2009

2011

Deposits
Deposit of the Bank increased in the year 2011 than in the year 2010. On December 2011
total deposit of the Bank stood at Tk. 100711.00 million as against Tk. 83244.8 million in 2010.
The deposit ratio of bank was 79.8% in the year 2011 compared to 2010 at 81.3%. The
following graph shows deposit of DBBL (2007-2011).
120,000.00
100,000.00
80,000.00

Deposit(figure
in million)

60,000.00
40,000.00
20,000.00
0.00
2007

2009

2011

Credit
On December 31, 2011 net credit of the Bank rose to Tk. 79660.7 million as against Tk.
67657.7 million in 2010.The following graph shows loans and advances of DBBL (2007-2011)

80,000.00
70,000.00
60,000.00
50,000.00

Loans and
advances(figure
in million)

40,000.00
30,000.00
20,000.00
10,000.00
0.00
2007 2008 2009 2010 2011

Total Profit
The total profit of the bank during 2011 was Tk 2154.9 million as against Tk 2002.3 million in
2010, rate of growth being 8%. Bank made more profit in the year 2011 than in the year 2010.
The following graph shows the profit of DBBL ( 2007-2011).

2500
2000
1500

Total
profit(figure

1000
500
0
2007

2009

2011

Last Five Years Position at a Glance

Taka in Million
Year
1.

Authorized Capital

2007

2008

2009

2010

2011

400.00

1000.0

4000.00

4000.00

4000.00

0
2.

Paid-up Capital

201.10

1000

1500

2000

2000

3.

Deposits

42110.

51575.

67788.5

83244.8

100711.0

29403.

41698.

48411.0

67657.7

79660.7

4.

Loans & Advances

5.

Investments

5909.3

5322.3

9685.9

11001.6

10897.7

6.

Net Profit (Pre-tax)

1022.3

1776.1

2154.4

3739.1

4547.7

7.

Total Import

43999.

53088.7

87662.6

83434.4

41162.5

73499.5

92412.4

35667.

7
8.

Total Export

34060.

40083.

RATIO ANALYSIS
Current Ratio:

Current Ratio
1.2
1.02

Axis Title

1.06

1.06

2009
1.06

2010
1.06

0.88

0.8
0.6
0.4
0.2
0
Current Ratio

2007
1.02

2008
0.88

2011
1

Interpretation:The current ratio is a popular financial ratio used to test a company's liquidity
(also referred to as its current or working capital position) by deriving the proportion of current
assets available to cover current liabilities. In theory, the higher the current ratio, the better.
From this graph it shows that DBBLs current ratio is increasing year to year. This implies that
they have short-term assets (cash, cash equivalents, marketable securities, receivables and
inventory) which are readily available to pay off its short-term liabilities (notes payable, current
portion of term debt, payables, accrued expenses and taxes).

Return on Assets:
Return on Assets

2.50%

Axis Title

2.00%

1.98%
1.75%

1.50%

1.35%

1.39%

2008
1.35%

2009
1.39%

0.97%

1.00%
0.50%
0.00%

2007
Return on Assets 0.97%

2010
1.98%

2011
1.75%

Interpretation: This ratio indicates how profitable a company is relative to its total assets.
The return on assets (ROA) ratio illustrates how well management is employing the company's
total assets to make a profit. The ROA ratio is calculated by comparing net income to average
total assets, and is expressed as a percentage. From the graph, DBBLs ROA ratio has increased
every year till 2010. That implies higher the return; the more efficient management is in
utilizing its asset base. But in the year 2011 the ratio has decreased then last year.

Earning Per Share:

Earning Per Share

100

82.16

Axis Title

80
60

75.85

47.98

40
20
0
Earning Per Share

2007
47.98

2008
82.16

2009
75.85

10.01

10.77

2010
10.01

2011
10.77

Interpretation: Earnings per share are generally considered to be the single most important
variable in determining a share's price. It is also a major component used to calculate the priceto-earnings valuation ratio. From the graph, we can compare the EPS from previous years and it
indicates the rate of growth DBBL is earnings are not growing that well. Because in the year
2010 & 2011 their EPS is very low.

Return On Equity:
Return on Equity
35.00%
30.00%
Axis Title

25.00%

25.51% 26.10%

28.60%
24.10%

20.55%

20.00%
15.00%
10.00%
5.00%
0.00%

2007
2008
2009
2010
2011
Return on Equity 20.55% 25.51% 26.10% 28.60% 24.10%

Interpretation: The return on equity implies the return that a firm generates against its
common equity. So, it is very important to increase return on equity. Here return on equity is
lower in 2011 than 2010 so, in the year 2011 DBBL risky for investment and decrease net
worth of the bank, value of the share and reputation than 2011.

Rate Earn On Stock Holders Equity:

Axis Title

Rate Earn on Stock Holder's Equity

0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
0
Rate Earn on Stock
Holder's Equity

35.27%
29.58%

30.27%

2007

2008

2009

2010

2011

29.58%

30.27%

35.27%

27.03%

27.03%

Interpretation: The rate earned on stockholders' equity, also known as the return on
stockholders' equity or just return on equity, expresses a relationship between a company's net
income and its stockholders' equity. The ratio indicates management's effectiveness in
generating a return on the shareholders' invested capital. Stockholders' equity is part of a
company's balance sheet, while net income is part of the income statement.

Share Holders Equity On Total Assets:

Axis Title

Share Holder Equity on Total Assets

8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%

4.72%

2007

Share Holder
Equity on Total 4.72%
Assets

6.91%

7.25%

5.30%

5.34%

2008

2009

2010

2011

5.30%

5.34%

6.91%

7.25%

Interpretation: From the graph we can see that shareholders claim on the assets are
increasing every year. This is not good for the bank. Only year 2007 had less percentage.

Share Holders Equity On Deposites & Borrowings:

Axis Title

Share Holder Equity on Deposits & Borrowings

10.00%
9.00%
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Share Holder Equity
on Deposits &
Borrowings

8.21%

8.72%

6.17%

6.19%

2007

2008

2009

2010

2011

5.46%

6.17%

6.19%

8.21%

8.72%

5.46%

Interpretation: The graph shows that this ratio is also increasing. Shareholders claims on

deposits are increasing which is not good for the bank. Again 2007 had less percentage.

Shares Holders Equity On Loans & Advances:

Sahre Holders' Equity on loans & Advances
12.00%
10.00%

10.35%
8.99%

8.21%

7.85%

2007

2008

2009

8.21%

7.85%

8.99%

8.00%

Axis Title

11.22%

6.00%
4.00%

2.00%
0.00%
Sahre Holders'
Equity on loans &
Advances

2010

2011

10.35% 11.22%

Interpretation: This graph shows that the percentage of shareholders claim on loans and
advances are fluctuating in the year 2007, 2008, 2009. It indicates a balance situation. But from
2010 it is increasing.

Price To Earning Ratio:

Price to Earning Ratio

Axis Title

100

78.69

80
60
40

28.5

25.81

22.9

20
0
Price to Earning
Ratio

14.9

2007

2008

2009

2010

2011

28.5

78.69

25.81

22.9

14.9

Interpretation: The price/earnings ratio (P/E) is the best known of the investment valuation
indicators. The P/E ratio has its imperfections, but it is nevertheless the most widely reported
and used valuation by investment professionals and the investing public. The average P/E ratio
for the broad market has been around 15, although it can fluctuate significantly depending on

economic and market conditions. From the graph, it is clear that, year 2008 had highest price to
earning ratio. In 2009, 2010, 2011 it has decreased a lot.

Price To Book Value Ratio:

Axis Title

Price to Book Value Ratio

16
14
12
10
8
6
4
2
0
Price to Book Value
Ratio

13.63

6.75

5.86

6.53
3.61

2007

2008

2009

2010

2011

5.86

13.63

6.75

6.53

3.61

Interpretation: A valuation ratio used by investors which compares a stock's per-share price

(market value) to its book value (shareholders' equity). The price-to-book value ratio, expressed
as a multiple (i.e. how many times a company's stock is trading per share compared to the
company's book value per share), is an indication of how much shareholders are paying for the
net assets of a company. The book value of a company is the value of a company's assets
expressed on the balance sheet. It is the difference between the balance sheet assets and balance
sheet liabilities and is an estimation of the value if it were to be liquidated. The price/book value
ratio, often expressed simply as "price-to-book", provides investors a way to compare the
market value, or what they are paying for each share, to a conservative measure of the value of
the firm. From the graph we can see that in 2007 the price to book value ratio was very low
compare to 2008. After 2008 till 2011 the value is low compare to 2008.In 2011 the value is
very low, Which is not good for DBBL, it may decrease their value in the market.

Profit Margine Ratio:

Profit Margine Ratio

27.97%

30.00%
22.58%

25.00%
Axis Title

20.00%

23.70%

23.60%

17.92%

15.00%
10.00%
5.00%
0.00%

2007
2008
2009
2010
2011
Profit Margine
17.92% 22.58% 23.60% 27.97% 23.70%
Ratio

Interpretation: It measures the relation between sales and profit. It is calculated by dividing
net income by the operating revenues of the bank. A high profit margin ratio is a sign of good
management. Here we see that DBBL had a increasing profit margin from 2007 to 2010. But in
2011 it had low profit margin.

Dedt Ratio:

0.96

Axis Title

0.95

0.953 Debt Ratio

0.947
0.947

0.94
0.931
0.93

0.927

0.92
0.91
Debt Ratio

2007
0.953

2008
0.947

2009
0.947

2010
0.931

2011
0.927

Interpretation: The debt ratio compares a company's total debt to its total assets, which is
used to gain a general idea as to the amount of leverage being used by a company. A low

percentage means that the company is less dependent on leverage, i.e., money borrowed from
and/or owed to others. The lower the percentage, the less leverage a company is using and the
stronger its equity position. In general, the higher the ratio, the more risk that company is
considered to have taken on. From this ratio, DBBL has less percentage of debt ratio but year to
year but the decreasing pattern is very low.

Debt Equity Ratio:

Debt Equtiy Ratio

25
21.05

Axis Title

20

17.84

17.72

15

13.45

12.79

2010
13.45

2011
12.79

10
5
0
Debt Equtiy Ratio

2007
21.05

2008
17.84

2009
17.72

Interpretation: The debt-equity ratio is another leverage ratio that compares a company's
total liabilities to its total shareholders' equity. This is a measurement of how much suppliers,
lenders, creditors and obligors have committed to the company versus what the shareholders
have committed. To a large degree, the debt-equity ratio provides another vantage point on a
company's leverage position, in this case, comparing total liabilities to shareholders' equity, as
opposed to total assets in the debt ratio. Similar to the debt ratio, a lower the percentage means
that a company is using less leverage and has a stronger equity position. So, from the ratio, it is
clear that DBBLs debt ratio is decreasing every year; it indicates that they are using less
leverage and they have a stronger equity position.

Cost Income Ratio:

Cost Income Ratio
0.6
0.5048
0.5

0.4681

0.4405

0.4742
0.4135

Axis Title

0.4
0.3
0.2
0.1
0

2007
Cost Income Ratio 0.5048

2008
0.4681

2009
0.4405

2010
0.4135

2011
0.4742

Interpretation: Cost Income Ratio compares The Companys Operating Expense to its
Operating Income. The lower percentage indicates that the companys operating expense is less
than its operating income. From this graph its clear that in 2011 the percentage is more than
the percentage of 2010.

TREND (For Performance Analysis)

In this section we calculate the trend of profit of DBBL by using least square
method.
For DBBL the trend equation is,
Y=a+bX
Y=1319.2+ 453.08X
The equation indicates that during the period of 2007-2011 profit of the DBBL
increased at a rate of 453.08 million per year.

Non Financial Performance Of DB

Social work:
Dutch Bangla Bank supports social work extensively and is one of the largest private donors in
Bangladesh. Under the vision of M Sahabuddin Ahmed, the bank contributes extensively
through its foundation Dutch Bangla Bank Foundation. This has been one of the biggest priority
for the bank since its inception. As a result the organization has been granted numerous national
and international awards for its role in the development of Bangladesh. The Dutch-Bangla Bank
Foundation was established under the vision of its founder chairman, M Sahabuddin Ahmed, in
order to help the people of Bangladesh. DBBL is the largest corporate donor in Bangladesh with
total donations exceeding BDT 1.3 billion.
The bank donates mainly towards social awareness programs, medical and educational fields.
Notably DBBL also maintains the largest scholarship program in Bangladesh whereby
college/university education tuition and expenses are fully paid for unconditionally by the bank.
In 2007, the bank won the Bangladesh Business Awards for being the 'Best Financial
Institution' mainly for its commitment to technology and community service. In 2007 alone,
DBBL donated BDT 220 million towards social causes.

Dutch-Bangla Bank Research Center:

In 2008, DBBL announced a donation of Tk 100 million to fund the construction of a 11 storey
research center, titled "Dutch-Bangla Bank Research Centre for Advanced Research in Arts and
Social Sciences" at the Dhaka University campus in Dhaka, Bangladesh. It was Dhaka
University's largest ever donation from a private company. The research center, which would be
the first of its kind in Bangladesh, will be supervised by renowned teachers, scholars and
researchers. It will also award scholarship to researchers and scholars at home and abroad.

The Bdt Tk 102 Core Annual Scholarship

In February 2011, it was announced that local sponsoring shareholders will not be receiving
dividends to "achieve greater things". In May 2011, DBBL announced the largest scholarship
program in Bangladesh where DBBL would have to donate Tk 102 crore every year. DBBL
was already the single largest corporate donor in Bangladesh and this new announcement had
surprised many, especially because it came from such a small bank. The structure of this
scholarship had greatly benefited students who had the academic performance, but required the
financial aid.
Corresponding this announcement, DBBL published the first group of awardees in a 10-page
advertisement spread in multiple newspapers. The recipients were awarded in a ceremony
where the stadium being used was not big enough to hold all the guests. Speakers at this event
greatly thanked DBBL's founder chairman, M Sahabuddin Ahmed, for his vision and dedication
in creating opportunities for students.

REFERENCE
We have collected necessary information from following media:

1.Annual Report of DBBL from 2007-2011

APPENDIX
Appendix-1:
Current Ratio:
Item

Formula

2011

Current Current

100862542106/

Ratio

100711010944=1

asset/curre
nt
liabilities.

Appendix-2:
ROA:
Item

Formula

2011

Return

(Net

(2154888510/1232670

on asset income/To
tal
assets)*10
0
Appendix-3:
EPS:
Item

Formula

2011

EPS

Earning

2154888510/2000000

Available

00=10.77

for
Common

35863)*100=1.75%

Stock/No.
of
Ordinary
Share
Appendix-4:
Rate Earn on Stock Holders Equity
Item

Formula

2011

REOS

(Net

(2154888510/

HE

Income

7970309133.5)*100=2

/Average

7.03%

Stock
Holder
Equity)*10
0
Appendix-5:
Share Holder Equity on Total Asset:
Item

Formula

2011

SHEOT (Share

(8939627903/1232670

35863)*100=7.25%

Holder
Equity/Tot
al
Asset)*100
Appendix-6:

Share Holder Equity on Deposits & Borrowings:

Item

Formula

2011

SHEO

(Share

Holder (8939627903/10071101

DB

Equity/Deposits 0944)*100=8.88%
&
Borrowings)*1
00
Appendix-7:

Share Holders Equity on Loans & Advances

Item

Formula

2011

SHEOL (Share
A

(8939627903/7966069

Holders

8143)*100=11.22%

Equity/Loa
ns

&

Advances)
*100
Appendix-8:
Price to Earning Ratio:
Item

Formula

2011

PTER

Market

161.3/10.8=14.9

Price

Per

Share/Earn
ing

Per

Share
Appendix-9:
Price to Book Value Ratio:
Item

Formula

2011

PTBR

Book

580.68/161.3=3.61

Value Per
Share/Mar
ket

Price

Per Share
Appendix-10:
Profit Margin Ratio:
Item

Formula

2011

PMR

(Net

(2154888510/9090483

Income/Op 150)*100=23.70%
erating
Income)*1
00

Appendix-11:
Debt Ratio:
Item

Formula

2011

Debt

Total

114327407960/12326

Ratio

Debt/Total

7035863=.927

Asset

Appendix-12:
Debt Equity Ratio:
Item

Formula

2011

DER

Total

114327407960/89396

Debt/

27903=12.79

Share
Holder
Equity

Appendix-13:
Cost Income Ratio:
Item
Formula

2011

CIR

4310605053/9090483

Operating

Expense/O 150=.4742
perating
Income
Appendix-14:
Trend of DBBL Limited:
Year Profit Tk. in

X = (x -

XY

X2

-959.6

(x)

million (Y)

x)

2007

479.8

-2

2008

821.7

-1

-821.7

2009

1137.3

2010

2002.3

2002.3

2011

2154.9

4309.8

n=5

Y=6596

X = 0

XY=4530.8

X2 =10

The equation of the straight line trend is Y = a + bX

Since, X = 0, Therefore, a = Y / N = 6596 / 5 = 1319.2
b = XY / X2 = 4530.8/ 10 = 453.08

Therefore, the required equation of the straight line trend is Y = 1319.2 + 453.08X
So, during 2007-2011 DBBLs profit increased at a rate of TK 453.08 million per year.