Bank Performance evaluation of EBL

Welcome to Our Presentation Topic: Performance Evaluation of Eastern Bank Ltd.

Md. Likhon - - - 080102005 Farhan Uddin Ahmed - - - 080102023 Md. Atiqul Islam - - - 080102025 Shabnam Jahan - - - 070102004 Muhammad Sazzad Hussain Chowdhury - - - 080102027 ,[object Object]

Company Profile Eastern Bank Limited (EBL) is one of the modern, fully online and technologically superior private commercial Banks in Bangladesh. Eastern Bank markets a wide range of depository, loan & card products. Eastern Bank has its presence in major cities/towns of the country including Dhaka, Chittagong, Sylhet, Khulna and Rajshahi. Tracing its origin back to 1992, EBL is serving the individual and corporate clientele alike with remarkable success offering innovative banking services since then.

Mission: ,[object Object],[object Object],[object Object]

Values: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Performance Evaluation ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Strategic priority of EBL: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Muhammad Sazzad Hussain Chowdhury 08.01.02.027

Technology: ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Success story: ,[object Object],[object Object],[object Object]

EBL with new ICT Infrastructure features: ,[object Object],[object Object],[object Object],[object Object],[object Object]

Benefits from Changes: ,[object Object],[object Object],[object Object],[object Object]

Farhan Uddin Ahmed 08.01.02.023

Personal Development: ,[object Object],[object Object],[object Object]

Compensation ,[object Object],Health and Wellness ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Personal Protection ,[object Object],[object Object],[object Object],[object Object],[object Object],Financial Future ,[object Object],[object Object]

Education ,[object Object],[object Object],Other Benefits ,[object Object],[object Object],[object Object]

Bank Profitability: ,[object Object],[object Object]

To analyze performance of Eastern Bank Limited (EBL) by calculating different financial ratios, we use following ratios- ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

ROE (Return on Equity): ,[object Object],Year 2005 2006 2007 2008 2009 Net Income 546,515,028 513,233,680 418,648,150 798,353,197 1,458,991,932 Total Equity 3,071,336,910 3,314,723,164 3,710,912,939 4,733,358,666 8,434,181,804 ROE 17.79% 15.48% 11.28% 16.87% 17.3%

By this ratio we see that in 2006 & 2007 EBL’s ROE is relatively lower than others. But in 2008 its increasing & also continuous increasing is going on. Therefore, investors will attract more effectively to invest.

ROA (Return on Asset): ,[object Object],Year 2005 2006 2007 2008 2009 Net Income 546,515,028 513,233,680 418,648,150 798,353,197 1,458,991,932 Total Asset 27,399,954,469 35,934,833,110 42,507,025,504 54,351,795,983 68,330,333,103 ROA 1.99% 1.43% 0.99% 1.47% 2.14%

Managing asset or handling asset is the most important part of an organization. Here, we see that Eastern Bank Ltd. Managing their asset in average at 1.5%. And also in 2009, ROA is much better than others.

Profit Margin: ,[object Object],Year 2005 2006 2007 2008 2009 Net Income 546,515,028 513,233,680 418,648,150 798,353,197 1,458,991,932 Operating revenue 1,591,610,252 2,110,747,329 2,820,667,205 3,701,632,829 4,617,633,138 Profit Margin 34.34% 24.32% 14.84% 21.57% 31.60%

EBL’s profit margin ratio in 2005 is 34.34% but it decreases in 2006, 2007, 2008 and it’s overcome in 2009. So, EBL is doing well in 2009.

Asset Utilization: ,[object Object],Year 2005 2006 2007 2008 2009 Total Asset 27,399,954,469 35,934,833,110 42,507,025,504 54,351,795,983 68,330,333,103 Operating revenue 1,591,610,252 2,110,747,329 2,820,667,205 3,701,632,829 4,617,633,138 Asset Utilization 0.058 0.059 0.066 0.068 0.067

EBL’s asset utilization capability is increasing 0.058 to 0.067. That’s a very good sign to any financial organization.

Net Interest Margin: ,[object Object],Year 2005 2006 2007 2008 2009 Total Interest Income 2,075,412,522 2,829,332,632 3,808,903,036 5,224,413,145 6,186,163,190 Total Interest Expense 1,365,455,642 2,160,078,142 2,498,068,117 3,675,380,751 4,032,711,612 Average Earning Asset 13,602,755,449.5 17,768,026,879 21,062,048,945 26,962,555,829 33,924,417,402 Net Interest Margin 0.052 0.038 0.062 0.057 0.063

EBL’s net interest margin standing in 2009 is 0.063, which is much better from previous years.

Provision for Loss Ratio: ,[object Object],Year 2005 2006 2007 2008 2009 Provision for Loan Losses 88,425,742 223,369,258 584,394,008 452,686,073 262,511,322 Total loans &Leases 17,757,598,566 25,973,981,280 30,895,706,294 39,427,383,891 46,129,522,083 Provision for Loss Ratio 0.5% 0.86% 1.89% 1.15% 0.57%

Provision for loan losses is doing better when it’s decreasing. Here we see that in 2006, 2007, 2008 this rate is increase & in 2009 its rate become lower. So, EBL is standing in a low risk position.

Md. Atiqul Islam 08.01.02.025

Loan Ratio: ,[object Object],Year 2005 2006 2007 2008 2009 Net loan 17,174,528,536 25,046,619,296 30,194,171,436 38,632,083,300 45,277,521,185 Total Asset 27,399,954,469 35,934,833,110 42,507,025,504 54,351,795,983 68,330,333,103 Loan Ratio 62.69% 69.7% 71.03% 71.08% 66.26%

EBL use their asset against loan very well like more than 50%. So, it is the good sign to EBL. But in 2009 it decreases. So, EBL must have to concentrate on this & solve the problem.

Temporary Investment Ratio: ,[object Object],Year 2005 2006 2007 2008 2009 Treasury bill 4,560,000,000 3,680,000,000 1,170,000,000 - - Investment ≤ 1year - 2,962,734,773 1,298,180,168 440,079,520 278,305,675 Due from other Bank 745,258,450 927,301,729 1,540,351,987 3,406,323,925 6,777,216,553 Total Asset 27,399,954,469 35,934,833,110 42,507,025,504 54,351,795,983 68,330,333,103 Temporary Investment Ratio 0.19 0.21 0.094 0.071 0.1

Temporary invest ratio of EBL in 2009 is running low. EBL must have to keep concentrate on it.

EPS (Earning Per Share): ,[object Object],Year 2005 2006 2007 2008 2009 Net Income 546,515,028 513,233,680 418,648,150 798,353,197 1,458,991,932 No. of Shares Issue 8,280,000 8,280,000 10,350,000 13,869,000 24,964,200 EPS 66 61.98 40.50 57.56 58.44

EPS of EBL 2005 & 2006 is good but in 2007 it is too much lower. In 2008 EBL make over the problem for EPS is increasing & also keep it in 2009.

DPS (Dividend per Share): ,[object Object],Year 2005 2006 2007 2008 2009 Proposed Dividend 331,200,000 372,600,000 351,900,000 - - No. of Shares Issue 8,280,000 8,280,000 10,350,000 13,869,000 24,964,200 DPS 40 45 34 - -

DPS of EBL 2005 & 2006 is good but in 2007 it is much lower. And it is going on in 2008 & 2009. EBL can’t give dividend.

P/E (Price Earning) Ratio: ,[object Object],Year 2005 2006 2007 2008 2009 Market Price of per Share 1222.75 792.50 1070.75 589.30 644.25 Annual Earnings per Share (EPS) 66 61.98 40.50 57.56 58.44 P/E (Price Earning) Ratio 18.53 12.79 26.44 10.24 11.02

EPS of EBL 2005, 2007 is good but in 2006, 2008, 2009 it is too much lower. Somehow external factors are not work properly for that P/E ratio decreasing.

SWOT analysis of EBL ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Opportunities: ,[object Object],[object Object],[object Object],Weaknesses: ,[object Object],[object Object],Threats: ,[object Object],[object Object]

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Bank Performance evaluation of EBL

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