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4/30/2013

Welcome to My
Presentation
Topic: Performance Analysis of
Eastern Bank Ltd.

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This is me !

Sha Md Ali Rana

ID: 2011010000189
Batch: 27th , Section: F
Department of BBA

Southeast University

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Company Profile
Eastern
Bank
Limited
is
a
commercial
bank headquartered in Dhaka, Bangladesh. It was established in
1992, as a public limited company with limited ability under the
bank companies act of 1991. Its share is listed in Dhaka Stock
Exchange and Chittagong stock Exchange. The bank provide
products and services in retail banking, corporate finance, Islamic
finance, asset management, equity brokerage and security.
EBL offers a wide range of depository, loan and card
products. The customers are served through a network of 59
Branches, 116 ATMs and 21 Kiosks countrywide. EBL has its
presence in 11 major areas in the country including Dhaka,
Chittagong, Sylhet, Khulna, Rajshahi Rangpur & Cox's Bazar.

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Vision:
To become the most valuable brand in the
financial services in Bangladesh and creating
long-lasting value for their stakeholders and
above all for the community.

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Mission:
They will deliver service into both internal and
external sector.
They will ensure to maximize shareholders'
value.
They will constantly challenge their systems
and training to maintain excellence team in
order to achieve organization goals.

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Values:

Openness;
Trust;
Commitment;
Integrity
Service excellence;
Responsible Corporate Citizen;

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Performance Evaluation
Strategic priority of EBL:
To become cost efficient
organization.
Increase shareholders value.
Create world class IT infrastructure
to deliver superior service to their
customers.
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Bank Profitability:
Eastern Bank Ltd. gain profit by earning
more money than what they pay in
expenses. The major portion of a bank's
profit comes from the fees on services and
the interest. Its major expense is the
interest paid on its liabilities.

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To analyze performance of Eastern Bank Limited

(EBL) by calculating different financial ratios, we use
following ratios1.
2.
3.
4.
5.
6.

ROE (Return on Equity)

ROA (Return on Asset)
Profit Margin
EPS (Earning Per Share)
DPS (Dividend Per Share)
P/E (Price Earning) Ratio

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1. ROE (Return on Equity):

ROE= (Net Income Total Equity) 100
Year

Net
Income

Total
Equity

2005

2006

2007

2008

2009

546,515,028

513,233,680

418,648,150

798,353,197

1,458,991,932

3,071,336,910

3,314,723,164

3,710,912,939

4,733,358,666

8,434,181,804

17.79%

15.48%

11.28%

16.87%

17.3%

ROE

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By this ratio we see that in 2006 & 2007 EBLs ROE is

relatively lower than others. But in 2008 its increasing &
also continuous increasing is going on.
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2. ROA (Return on Asset):

ROA= (Net Income Total Asset) 100
Year

2005

2006

2007

2008

2009

546,515,028

513,233,680

418,648,150

798,353,197

1,458,991,932

27,399,954,469

35,934,833,110

42,507,025,504

54,351,795,983

68,330,333,103

1.99%

1.43%

0.99%

1.47%

2.14%

Net
Income

Total
Asset

ROA

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We see that Eastern Bank Ltd. managing their asset in

average at 1.5%. And also in 2009, ROA is much better
than others.
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3. Profit Margin:
Profit Margin= (Net Income Operating Revenue) 100
Year

2005

2006

2007

2008

2009

546,515,028

513,233,680

418,648,150

798,353,197

1,458,991,932

1,591,610,252

2,110,747,329

2,820,667,205

3,701,632,829

4,617,633,138

34.34%

24.32%

14.84%

21.57%

31.60%

Net Income

Operating
revenue

Profit
Margin

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EBLs profit margin ratio in 2005 is 34.34% but it

decreases in 2006, 2007, 2008 and its overcome in 2009
and continue increasing.
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4. EPS (Earning Per Share):

EPS= Net Income No. of Shares Issue
Year

2005

2006

2007

2008

2009

546,515,028

513,233,680

418,648,150

798,353,197

1,458,991,932

8,280,000

8,280,000

10,350,000

13,869,000

24,964,200

66

61.98

40.50

57.56

58.44

Net Income

No. of
Shares
Issue

EPS

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EPS of EBL 2005 & 2006 is good but in 2007 it is too much
lower. In 2008 EBL make over the problem & also keep it in
2009.
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5. DPS (Dividend per Share):

DPS= Proposed Dividend No. of Shares Issue
Year
Proposed
Dividend

2005

2006

2007

2008

2009

331,200,000

372,600,000

351,900,000

8,280,000

8,280,000

10,350,000

13,869,000

24,964,200

40

45

34

No. of Shares
Issue

DPS

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DPS of EBL 2005 & 2006 is good but in 2007 it is much lower.
And it is going on in 2008 & 2009. EBL cant give dividend.

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6. P/E (Price Earning) Ratio:

P/E Ratio = Market Price of per Share Annual
Earnings per share (EPS)
Year

2005

2006

2007

2008

2009

1222.75

792.50

1070.75

589.30

644.25

66

61.98

40.50

57.56

58.44

18.53

12.79

26.44

10.24

11.02

Market Price
of per Share

Annual
Earnings per
Share (EPS)
P/E (Price
Earning)
Ratio

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EPS of EBL 2005, 2007 is good but in 2006, 2008, 2009 it

is too much lower.

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SWOT analysis of EBL

Strengths:

First online banking operations across all the branches.

Authorized share capital increased to BDT 3.3 billion.
EBL listed with Dhaka and Chittagong stock exchange.
Launching of SME Banking Division.
Awarded Super brand by super brands Inc. for the period
2009-2011

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Weaknesses:
Lack of Bank Branches and ATM Booths.
Lack of Capital.
Lower growth rate.

Opportunities:
Emerging economies

Threats:
Downturn in American spending.
Rival Banks are growing faster than EBL.
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Conclusion:
Eastern Bank Ltd. has maintain a unique banking
system from beginning to over the time period. Their
experienced management team always try to work for
improving their banking performance. Though, every
business has up and down in financial condition. But
over all process of EBL leading Excellency in banking
performance.

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be happy!
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