Southeast Bank Limited's financial performance over 2010-2014 is analyzed using various ratios. The current ratio declined from 1.52 to 1.24, indicating current assets are not sufficiently covering current liabilities. Net profit margin decreased from 32% to 33%, while return on assets increased slightly from 2.26% to 1.67% and return on equity from 19.41% to 16.51%, showing mixed profitability. Cost to income ratio improved significantly from 70.04% to 57.96%, but was still higher than industry averages, indicating room for improving operational efficiency. Overall, the bank showed steady but moderate financial growth and performance during the period.

2. Presentation
on
“Financial Performance Evaluation
of
Al-Arafah Islami Bank Limited”

3. Presented By
Rizwan Mahbub Khan
ID: 12132101051
Intake: 30th
Program: BBA
Department of Marketing
Bangladesh University of Business and Technology (BUBT)

4.  Bangladesh University of Business & Technology (BUBT)
is conducting BBA program with excellent reputation.
 To complete BBA program also has an internship, relating to
the exchange of theoretical knowledge into the partial
fulfillment of the internship program.
 To fulfillment of the Internship program the report is
originated entitled “Financial Performance Analysis of Al-
Arafah Islami Bank Limited”.
 Without practical exposure theory can never be acquired.

5. General Objective
 The prime objective of this report is to analyze the Evaluation of Investment
Performance of Al-Arafah Islami Bank Limited.
Specific Objectives :
 To find out the overall investment proposal & apprisal procedures, documentations,
geographical allocation of AIBL.
 To analysis different types of Investment mode (products) as well as sector wise and
geographical allocation of AIBL.
 To analyze the recovery performance of AIBL over the year.

6. Research Design
 This report is descriptive in nature which briefly analyzes the Analysis of
Investment Performance of Al-Arafah Islami Bank Limited. It has been
administrated by collecting secondary data.
Data used in the study
 The study is mainly based on secondary data. The annual report of SEBL, website
of SEBL, annual report of Bangladesh Bank and different text book are the major
data sources in this report. Though the use of primary data are very limited in this
report, some informantion has been collected from the opinions of officials of
SEBL. The secondary data are collected for the period of five years from 2010 to
2014.

7. The ratio analysis is used to analyze the financial performance of SEBL. Different types
of computer software such as- Microsoft Word, Microsoft Excel etc. are used for
analyzing and reporting purpose of the study. The ratio analysis is conducted in form of
trend analysis and comparative analysis.
 Trend analysis
Trend analysis is the analysis of firm’s performance over time using ratios. It is really
important to analyze trends in ratios as well as their absolute levels. This analysis informs
us whether a company’s financial condition improving or deteriorating.
 Comparative analysis
Comparative analysis is comparison of bank’s performance with the industry average. The
study compares the profitability of the bank with industry average.

8. The report is likely to have following limitations:
 Due to shortage of time, the accuracy of information may not have been completely
perfect.
 Confidentiality of data was another important barrier that was faced during the
conduct of this study. Every organization has their own secrecy that is not revealed
to others. While collecting data on SEBL, personnel did not disclose enough
information for the sake of confidentiality of the organization.
 Data and information used in this study are mostly from secondary sources.
 Last of all, this study has been conducted within a limited time. So, Observing and
analyzing the broad performance of the bank is not an easy task by this short
duration of time (only three months).

9. Southeast Bank Limited at a glance
Keys Point Particular
Name Southeast Bank Limited
Logo
Date of Incorporation 12th March 1995
Status Private Limited Company
Chairman Mr. Alamgir Kabir Chowdhury
Managing Director Mr. Shahid Hossain
Number of Branches 115
Total Manpower 2221
Listed with Dhaka Stock
Exchange
02 February 2004
Profit 3836.94 millions(2014)
Award received ICAB, SAFA
Head Office Eunoos Trade Center,52-53 dilkusha
C/A
Web and E-mail Address www.sebankbd.com

12. 1. Current Ratio
2. Net Working Capital

13. Current Ratio = Total Current Assets / Total Current Liabilities
Graphical Presentation
Table 4.l Current Ratio (Tk. in Million)
Year 2010 2011 2012 2013 2014
Current Asset 2913 3578 3644 4297 4480
Current Liability 1914 2884 2933 3404 3609
Current Ratio(Times) 1.52 1.24 1.24 1.26 1.24
1.52
1.24 1.24 1.26 1.24
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2010 2011 2012 2013 2014

14. 4.1.2 Net Working Capital
Net Working Capital= Current Asset – Current Liabilities
Graphical Presentation
Table 4.2: Net working capital (Tk. in Million)
Year 2010 2011 2012 2013 2014
Current Asset 2913 3578 3644 4297 4480
Current Liability 1914 2884 2933 3404 3609
Net Working Capital 998 693 710 893 870
998
693 710
893 870
0
200
400
600
800
1000
1200
2010 2011 2012 2013 2014

15. 4.2.1 Total Asset Turnover
4.2.2 Classified Loan Ratio

16. Total Asset Turnover = Revenue /Total Assets
Year 2010 2011 2012 2013 2014
Revenue 8507 8168 7832 9685 11617
Total Asset 131943 157952 189787 220578 236216
Total Asset Turnover
(Times)
0.06 0.05 0.041 0.044 0.05
Graphical Presentation:
4.2.1 Total Asset Turnover
Source: Annual Report of SEBL (2010-14)
0.06
0.05
0.041 0.044
0.05
0
0.01
0.02
0.03
0.04
0.05
0.06
0.07
2010 2011 2012 2013 2014
Total Asset Turnover(Times)

17. Classified Loan Ratio = Classified Loan & Advance / Total Loan & Advance
Graphical Presentation
Table 4.4: Classified Loan Ratio (Tk. in Million)
Source: Annual Report of SEBL (2010-2014)
Year Percentage
2010 4.26%
2011 3.51%
2012 4.47%
2013 3.94%
2014 3.64%
4.26%
3.51%
4.47%
3.94% 3.64%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
2010 2011 2012 2013 2014
Classified Loan Ratio

18. 4.3.1 Debt Ratio
4.3.2.Debt to Equity Ratio

19. 4.3.1 DEBT RATIO
Debt ratio: Total Liabilities / Total Assets
Table 4.5: Debt Ratio (Tk. in Million)
Year 2010 2011 2012 2013 2014
Total Liabilities 114798 138568 169984 198662 211696
Total Asset 131943 157952 189787 220578 236216
Debt Ratio 87.01% 87.73% 89.57% 90.06% 89.62%
Source: Annual Report of SEBL (2010-2014)
Graphical Presentation:
87.01%
87.73%
89.57%
90.06%
89.62%
85.00%
85.50%
86.00%
86.50%
87.00%
87.50%
88.00%
88.50%
89.00%
89.50%
90.00%
90.50%
2010 2011 2012 2013 2014
Debt Ratio

20. 4.3.2 DEBT TO EQUITY RATIO
Debt to equity Ratio = Total Liabilities / Shareholders Equity
Year 2010 2011 2012 2013 2014
Total Liabilities 114798 138568 169984 198662 211696
Total Equity 17146 19376 19784 21929 24543
Debt to Equity ratio(Times 6.70 7.15 8.59 9.06 8.63
Source: Annual Report of SEBL (2010-2014)
Graphical Presentation
6.70%
7.15%
8.59%
9.06%
8.63%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
2010 2011 2012 2013 2014
Table 4.6: Debt to Equity ratio (Tk. in Million)

21. 4.4 PROFITABILITY RATIOS
4.4.1 Net Profit Margin
4.4.2 Return on Asset (ROA)
4.4.3 Return on Equity (ROE)
4.4.4 Cost Income Ratio
4.4.5 Earnings per Share (EPS)

22. 4.4.1 Net Profit Margin
Net Profit Margin= Net profit after tax / Operating income
Table 4.7: Net Profit Margin (Tk. in Million)
Year 2010 2011 2012 2013 2014
Net profit after tax 2764 1912 1649 3379 3837
Operating income 8507 8168 7832 9685 11617
Net profit Margin 32% 24% 21% 35% 33%
Graphical Presentation
32%
24%
21%
35% 33%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
2010 2011 2012 2013 2014
Source: Annual Report of SEBL (2010-2014)

23. 4.4.2 Return on Asset (ROA)
ROA= Net income / Total asset
Table 4.8: Return on Assets (Tk. in Million)
Graphical Presentation
2.26%
1.32%
0.95%
1.64% 1.67%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2010 2011 2012 2013 2014
Year ROA
2010 2.26%
2011 1.32%
2012 0.95%
2013 1.64%
2014 1.67%
Source: Annual Report of SEBL (2010-2014)

24. 4.4.3 Return on Equity (ROE)
ROE=Net income / Shareholder equity
Table 4.9: Return on equity (Tk. in Million)
Graphical Presentation
19.41%
10.47%
8.42%
16.20%
16.51%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2010 2011 2012 2013 2014
Year ROE
2010 19.41%
2011 10.47%
2012 8.42%
2013 16.20%
2014 16.51%
Source: Annual Report of SEBL (2010-2014)

25. 4.4.4 Cost Income Ratio
Cost to Income Ratio= Total Operating Cost / Total Operating Income
Table 4.10: Cost to Income Ratio (Tk. in Million)
Graphical Presentation
70.04% 75.11% 76.25%
69.47%
57.96%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2010 2011 2012 2013 2014
Year SEBL
2010 70.04%
2011 75.11%
2012 76.25%
2013 69.47%
2014 57.96%
Source: Annual Report of SEBL (2010-2014)

26. 4.4.5 Earnings per Share (EPS)
EPS = Earnings available for common stock holder / No. of common stock outstanding
Table 4.11: Earnings per Share (Tk. in Million)
Graphical Presentation
3.77
2.19
1.89
3.68
4.18
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2010 2011 2012 2013 2014
Year Earnings per Share
2010 3.77
2011 2.19
2012 1.89
2013 3.68
2014 4.18
Source: Annual Report of SEBL (2010-2014)

27. 4.5.1 Price Earnings Ratio

28. 4.5.1 Price Earnings Ratio
16
12.88
10.52
4.68 4.65
0
2
4
6
8
10
12
14
16
18
2010 2011 2012 2013 2014
Price Earnings Ratio = Market price per share of common stock / EPS
Graphical Presentation
(Tk. in Millions)
Year 2010 2011 2012 2013 2014
Market Price Per Share 59.76 31.10 20.00 17.90 19.45
Earnings per share 3.77 2.19 1.89 3.68 4.18
P/E Ratio(Times) 16.00 12.88 10.52 4.68 4.65
Table 4.12: Price Earnings Ratio

29. 5.1 Operating Cost to Income Ratio
5.2 Return on Assets
5.3 Return on Equity

30. 5.1 COST TO INCOME RATIO
70.04% 75.11% 76.25%
69.47%
57.96%
70.80% 68.60% 74.00%
79.20% 77.80%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%
90.00%
2010 2011 2012 2013 2014
Cost to Income Ratio = Total Operating Cost/ Total Operating Income
Graphical Presentation
(Tk. in Millions)Table 5.1: Cost to Income Ratio
Year 2010 2011 2012 2013 2014
SEBL 70.04% 75.11% 76.25% 69.47% 57.96%
Industry Average 70.80% 68.60% 74.00% 79.20% 77.80%
Source: Annual Report of SEBL & Bangladesh Bank

31. 5.2 Return on Assets(ROA)
2.26%
1.32%
0.95%
1.64% 1.67%
1.80%
1.50%
0.60% 0.60% 0.60%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
2010 2011 2012 2013 2014
Return on Asset (ROA) = Net profit after Taxes / Total Assets
Graphical Presentation
(Tk. in Millions)Table 5.2: Return on Assets
Source: Annual Report of SEBL & Bangladesh Bank
Year SEBL Industry Average
2010 2.26% 1.8%
2011 1.32% 1.5%
2012 0.95% 0.6%
2013 1.64% 0.6%
2014 1.67% 0.6%

32. 5.3 Return on Equity (ROE)
19.41%
10.47%
8.42%
16.20% 16.51%
21.00%
17.00%
8.20% 8.20% 8.40%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
2010 2011 2012 2013 2014
Return on Equity
Return on Equity (ROE) = Net profit after Taxes / Stockholders Equity
Graphical Presentation
(Tk. in Millions)Table 5.3: Return on Equity
Source: Annual Report of SEBL & Bangladesh Bank
Year SEBL Industry Average
2010 19.41% 21.0%
2011 10.47% 17.0%
2012 8.42% 8.2%
2013 16.20% 8.2%
2014 16.51% 8.40%

33. Analysis of the financial performance of Southeast Bank Limited from reveals the
following major findings:
SEBL has reduced its liquidity position over the years and thereby it has increase
liquidity risk over the years.
 The cost of income ratio has increased over the years. However, the cost income
ratio of SEBL is lower than industry average in 2010 and 2013.
 Southeast Bank Ltd has increased leverage position by increasing its debt ratio
from 87.01% in 2010 to 89.62% in 2014.
 The Return on Asset and Return on equity of SEBL has fluctuated over the years of
the analysis. However, the Return on Asset and Return on equity of SEBL are
higher than industry average over last two years of analysis.
 The NPL of SEBL has increased over the years. But the NPL of SEBL is lower than
industry average over each years of analysis.
 Price earnings ratio has decreased from 16.00 times in 2010 to 4.68 times in 2014;
and The P/E ratio of the SEBL is lower than industry average over the each year of
analysis except in 2010, 2012 & 2014.

34. Following recommendations can be made to improve the financial performance of the
SEBL:
 The decreasing trend in current ratio will increase the liquidity risk of the bank.
Therefore bank can increase its current asset to increase its current ratio
considering the aspect of profitability on income.
 The cost to income ratio of SEBL has increased over the years. Therefore, SEBL
should reduce cost of fund, operating expenses and should enhance the service area
to make profitability.
 Southeast Bank Ltd should reduce its debt position to increase its profitability.
 Though the ROA and ROE of DBBL has increased in the last two years. After that
SEBL should emphasize on utilizing the assets for generating profits and control its
expenses to increase its ROA and ROE ratio so that it has continue in coming year
 The bank should properly analyze the creditworthiness of the borrower by
examining the five C’s of the borrower in order to reduce the non-performing
loan.