Analysis Between Bank

Executive Summary:Banking Business is appearing to be the dominant factor in recent years. Long before, since the emergence of Banks and similar activities was to attracting people to save valuable possessions and engaging more people in it. But with the change in time and technology the pattern of Bank business activities has also changed. It is now changing in every day with the changing world with competent man and cutting edge technology to fulfill its goal for the people.In this project paper, I want to provide the comparative scenario between two prominent bank in Bangladesh those are The city bank ltd. and Social Islami bank ltd. The financial statements are the main factors to compare the position of those banks that lead the title name of this project paper which is a comparative study of financial statement analysis between The City Bank Ltd. and Social Islami Bank Ltd.This project paper mainly divided into two parts those are organizational part and the analysis part. In organizational part consists of organizational overview, vision, mission, values, and organizational structure and so on. In analysis, this part was divided into two parts includes graphical analysis and ratio analysis between two banks. In graphical analysis part several financial items are showed to compare the position between two banks. In ratio analysis part I used several common ratios as a tool to effective comparison.In this project paper showed my best effort with a limited knowledge. Above all, I just tried to show the real picture of financial position by analysis of several financial statements of The city bank ltd. and Social Islami bank ltd.Introduction:Everywhere in this world, banking industry is playing a vital role in the economic development. We can observe that financial development in different countries of the world starts with Banking Financial Institutions. Bank as the principal source of credit to millions of individuals, families, businesses & many units of government, has attached its own pace of advancement in the development path of economy.The main function of a commercial bank is to mobilize deposits and to provide loans to people & organizations to finance their consumptions and business activities. Thus banks encourage the flow of money to productive use & investment which accelerates the flow of economic growth. In this project paper I want to show the comparison between two leading bank in Bangladesh those are the city bank ltd. and Social Islami bank ltd. under the supervision ofSr. Lecturer Nigar Sultana, Department of Business Administration, Stamford University Bangladesh.ObjectivesWithout objectives, no study can be fruitful one. Before preparing the report, I setup some objectives. Those objectives are divided into two parts, these are given below:Primary objectives To meet the requirements to achieve MBA degree. Highlighting and analyzing the comparative financial position of the city bank ltd. and social Islami bank ltd.Secondary objectives To know the financial condition of the banks. To get the opportunity of financial statement analysis. To promote myself by using different financial tools.MethodologyFor preparing the paper, both primary & secondary data have been utilized. Primary data have been collected from the selected banks having interview of bank officials. The secondary data have been collected by visiting the websites of the banks, searching the annual reports and visiting the several financial websites to make this paper fruitful.Generally, its a analysis based project paper which for why I used several graphs and ratio analysis for that several computer software make it in a nice look.Limitations of the studyIt is obvious that every study has some limitations. The study I have made that was great importance and required me huge work .To do that I have faced some difficulties, which made my conduction of the study little hazardous. Some of these are given below:The organization maintains strict confidentiality about their financial and other information. They are afraid of any type of information leakage to their competitors. So there was always difficulty to have appropriate information from them. Scope of my study was so wide of this kind of analytical and comprehensive study. Lack of sufficient books, papers and journals etc. Web site of the banks isnt up to date to gather valuable information. In case of secondary data collection, there was very few secondary information.An Overview of Banking Sector in BangladeshDefinition of BankA financial institution that is licensed to deal with money and its substitutes by accepting time and demand deposits, making loans, and investing in securities. The bank generates profits from the difference in the interest rates charged and paid.An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositors checks; and issues drafts and cashiers checks.Objectives of BankThe main objective of a commercial bank is to provide high standard facilities for transfer of funds, financing the business operations and purchase of households, security and adequate return on savings and earns income from these activities to provide optimum return to its shareholders.The main objective of commercial banks is to maintain higher profitability by maintaining circular and efficient flow of amount of money deposited by the customers and the lenders. Commercial banks contribute to the economic cycle by keeping the money circulation among households, government and corporate businesses. The commercial banks lend money to the economic agents through their various products and services by earning interest income on the borrowed money. Commercial banks design their short term and long term loans and other products to cater to the need of customers while enhancing their own returns. Their objective is to attract more customers and build profitable relationships with the new and existing customers. Its principal objective is to maintain price stability. In seeking its principal objective, the Bank of Lithuania is independent from the Government of the Republic of Lithuania or other institutions of the state. Bangladesh Bank is the Central bank of Bangladesh. It is the monetary authority of the country. The broad objectives of the Bank are: To regulate currency issuance and to keep foreign exchange reserves. To manage the monetary and credit system of Bangladesh with a view to stabilizing domestic monetary value. To preserve the par value of the Bangladeshi Taka and reserve all the rights of the bank. To promote and maintain a high level of production, employment and real income in Bangladesh; and to foster growth and development of the countrys productive resources.Historical Background of the Banking Institution in Bangladesh BankThere is no formal evidence of the existence of banks in Bengal during the period before 400 BC; traders of this period were known to have carried out activities to provide financial assistance among them. The wealthy people of that period used to put their surplus money and valuables under the soil in brass-made pitchers and maintained accounts for them by writing on the body of dishes made of gold or silver. Such activities, however, were centered in temples and other religious places. Borrowing and lending gave way to banking during the period, who believed that wise men should deposit money with a person bearing good moral character, having respectable and rich relatives, and well conversant with law. Probably it is the introduction of banking system in the world. During the Mughal period, there were different types of gold coins in circulation that encouraged people to engage in monetary transactions and profit-motivated financial activities. Many individuals and some families attained special reputation in trading and in finance. One such family, that of jagat sheth, had branches of its monetary business in dhaka, Hughli and murshidabad. Mughal rulers patronised the banking business of Jagat Sheth family and others, and also used to borrow money from them when needed. People could convert their valuables, mostly gold and silver, into currency with minimum cost at Mughal mints. Monetary transactions and transfer through hundi (bill of exchange), along with cash transaction, was in vogue during the Mughal period. The revenue received from zamindars and dues there from were sent to the government treasury through family-based financial or banking institutions. A major landmark was the establishment of the Hindustan Bank in 1700 AD at calcutta Established in 1784; the Bengal Bank was the first British-patronised modern bank in India. Dhaka Bank started to operate as a commercial bank in 1806. The Bengal Bank opened its first branch in Dhaka by purchasing Dhaka Bank in 1862. In 1873, it opened its two branches in sirajganj and chittagong. Another branch of Bengal Bank was opened in chandpur in 1900. Six branches of Bengal Bank were in operation in the Bangladesh region until the partition of bengal in 1947 and these branches were located at Dhaka, Chittagong, mymensingh, rangpur, Chandpur and narayanganj. The banking system in the territory of Bangladesh grew slowly during the British and Pakistan periods. There were only 25 bank branches in 1901 and the number grew to 668 in 1946. The banking system in Bangladesh started functioning with 1,130 branches of 12 banks inherited from Pakistan. These banks were nationalised and renamed after being merged. The the banks were the sonali bank (The National Bank of Pakistan, The Bank of Bawalpur, The Premier Bank), agrani bank (Habib Bank, Commerce Bank), janata bank (United Bank, Union Bank), rupali bank (Muslim Commercial Bank, Standard Bank), pubali bank (Australasia Bank, Eastern Mercantile Bank) and uttara bank (Eastern Banking). bangladesh bank, the central bank of the country, was set up on 16 December 1971 by the Bangladesh Bank Order 1972. The government accepted the assets and liabilities of the Deputy Governors office of the State Bank of Pakistan in Dhaka and declared the Bangladesh Bank as a fully effective and permanent central bank. Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform programmed to ensure quality servicesBB NCBs PCBs Specialized bankBanking Operation in Bangladesh BankBangladesh Bank performs all the functions that a central bank of any country is expected to perform, and such functions include maintaining the price stability through economic and monetary policy measures, managing the countrys foreign exchange and the gold reserve and regulating the banking sector of the country. Bangladesh Bank, like most of the central banks of different countries, exercises monopoly over the issue of currency and the banknotes. Except for the 1 and 2 taka notes, it issues all other denominations of Bangladeshi Taka. Bangladesh Bank is empowered to act as the watchdog of the countrys banking system, and all scheduled banks are accountable to Bangladesh Bank, which has extensive powers to ensure soundness of the banking system. No bank can commence banking business in Bangladesh and no existing bank can open a new branch in or outside the country or shift any branch from one place to another without obtaining a license/permission from the Bangladesh Bank.Organizational Profile of The City Bank LtdAn Overview of the Bank:City Bank is one of the oldest private Commercial Banks operating in Bangladesh. It is a top bank among the oldest five Commercial Banks in the country which started their operations in 1983. The Bank started its journey on 27th March 1983 through opening its first branch at B. B. Avenue Branch in the capital, Dhaka city. It was the visionary entrepreneurship of around 13 local businessmen who braved the immense uncertainties and risks with courage and zeal that made the establishment & forward march of the bank possible. Those sponsor directors commenced the journey with only Taka 3.4 crore worth of Capital, which now is a respectable Taka 330.77 crore as capital & reserve. City Bank is among the very few local banks which do not follow the traditional, decentralized, geographically managed, branch based business or profit model. Instead the bank manages its business and operation vertically from the head office through 4 distinct business divisions namely1. I. Corporate & Investment Banking;2. II. Retail Banking (including Cards);3. III. SME Banking; &4. IV. Treasury & Market Risks.Under a real-time online banking platform, these 4 business divisions are supported at the back by a robust service delivery or operations setup and also a smart IT Backbone. Such centralized business segment based business & operating model ensure specialized treatment and services to the banks different customer segments.The bank currently has 90 online branches and 1 SME service centers and 11 SME/Agri branch spread across the length & breadth of the country that include a full fledged Islami Banking branch. Besides these traditional delivery points, the bank is also very active in the alternative delivery area. It currently has 163 ATMs of its own; and ATM sharing arrangement with a partner bank that has more than 550 ATMs in place; SMS Banking; Interest Banking and so on. It already started its Customer Call Center operation. The bank has a plan to end the current year with 200 own ATMs.City Bank is the first bank in Bangladesh to have issued Dual Currency Credit Card. The bank is a principal member of VISA international and it issues both Local Currency (Taka) & Foreign Currency (US Dollar) card limits in a single plastic. VISA Debit Card is another popular product which the bank is pushing hard in order to ease out the queues at the branch created by its astounding base of some 400,000 retail customers. The launch of VISA Prepaid Card for the travel sector is currently underway.City Bank has launched American Express Credit Card and American Express Gold Credit card in November 2009. City Bank is the local caretaker of the brand and is responsible for all operations supporting the issuing of the new credit cards, including billing and accounting, customer service, credit management and charge authorizations, as well as marketing the cards in Bangladesh. Both cards are international cards and accepted by the millions of merchants operating on the American Express global merchant network in over 200 countries and territories including Bangladesh. City Bank also introduced exclusive privileges for the card members under the American Express Selects program in Bangladesh. This will entitled any American Express card members to enjoy fantastic savings on retail and dining at some of the finest establishment in Bangladesh. It also provides incredible privileges all over the globe with more than 13,000 offers at over 10,000 merchants in 75 countries. City Bank prides itself in offering a very personalized and friendly customer service. It has in place a customized service excellence model called CRP that focuses on ensuring happy customers through setting benchmarks for the banks employees attitude, behavior, readiness level, accuracy and timelines of service quality.Table01: overall financial activitiesDate of IncorporationMarch 14, 1983

Formal InaugurationMarch 27, 1983

Number of Branches86

Paid up Capital1,188,000,000

Total capital3,156.25

Total asset48,755.40

Total deposits40,539.63

City Bank is one of the largest corporate banks in the country with a current business model that heavily encourages and supports the growth of the bank in Retail and SME Banking. The bank is very much on its way to opening many independent SME centers across the country within a short time. The bank is also very active in the workers foreign remittance business. It has strong tie-ups with major exchange companies in the Middle East, Europe, Far East & USA, from where thousands of individual remittances come to the country every month for disbursements through the banks large network of 99 online branches and SME service centers. The current senior management leaders of the bank consist of mostly people from the multinational banks with superior management skills and knowledge in their respective specialized areas. The newly launched logo and the pay-off line of the bank are just one initial step towards reaching that point.VisionThe Financial Supermarket with a Winning Culture Offering Enjoyable ExperiencesMission Offer wide array of products and services that differentiate and excite all customer segments Be the Employer of choice by offering an environment where people excel and leaders are created Continuously challenge processes and platforms to enhance effectiveness and efficiency Promote innovation and automation with a view to guaranteeing and enhancing excellence in service Ensure respect for community, good governance and compliance in everything they doValues Result Driven Accountable & Transparent Courageous & Respectful Engaged & Inspired Focused on Customer DelightStrategies of CBLCBL believes in the practice of Market-Oriented Strategic Planning, developing and maintaining viable fit the organizations objectives, skills and resources. The aim of such approach is to shape and reshape the banks businesses and services so that they yield target profits and growth.The strategic planning of CBL consists of two organizational levels, which are: Location Based Strategy Business Level StrategyLocation Based StrategySince the growth and profits of banking business largely depend upon the locations of branches where large concentration of other businesses and industries are involved, CBL Main Strength is its location based strategy.The 90 branches of CBL are divided into six different regions, which are:1. Dhaka Division, comprising 40 branches. 2. Chittagong Division, comprising 15 branches3. Comilla Division comprising 06 branches4. Sylhet Division, comprising 10 branches5. Bogra Division, comprising 10 branches 6. Khulna Division, comprising 09 branchesThe concentration of businesses and lifestyles of the people are not the same in these six areas. So, the strategies of the six areas differ from one another; but they are designed with distinctive local touch. Head office constantly monitors the progresses of all the six areas. The bank is not interested in launching more branches. Currently CBL is focusing in strengthening the existing branches.Business Level StrategyThe business strategy of the Bank is to strengthen its retail business, following a conservative lending approach. But the Banks major portion of the profit generates from its Retail banking and SME Banking.Organizational Structure of City Bank LimitedCity Bank ltd. Maintain organizational hierarchy to locate and differentiate employees that is varies upon employees designation and work. Junior officer is the entry level post for the entire officers.Table-2: Organizational hierarchy of City Bank Limited:Chairman

Vice-Chairman

Board of Directors

Managing Director & CEO

Deputy Managing Director

Senior Executive Vice President

Executive Vice President

Senior Vice President

First Vice President

Senior Executive Officer

Vice President

Assistant Vice President

Senior Assistant Vice President

Executive Officer

Senior Officer

Officer

Junior Officer

Functions of the BankThe bank performing following functions: Borrow money from different institutions and individual. Lending with or without security for local and international trade. Carrying out functions of foreign trade and foreign exchange business including opening L/C, issuance of T/C, credit card, promissory note, approved securities etc. Buying and selling foreign currencies. Participates in the capital market as stock-broker and as a portfolio investor. Reliable safe custody of valuables. Providing excellent remittance facilities. Provides withdrawal facilities of deposits.Departments of CBL Human resources Department Finance Department Audit & Inspection Department Marketing Department Retail Banking & Consumer Banking Division Corporate Banking Division Treasury Division Trade Service & Correspondents Banking Division Loans and advance Division SME Banking Division Card Division Information & Technology Division.Products Offered by CBLCity Bank Ltd. is a rapid growing commercial bank in the country. Its competing in the market with wide range of product and services that plays a vital role in its attainment. The CBL concentrates the following categories of banking services-Table-3: Products Offered by CBLCorporate BankingRetail BankingSME BankingIslamic Banking Treasury

Working Capital FinanceTrade FinanceShort/ midterm FinanceProject FinanceIslamic FinanceStructured FinanceCash ManagementInvestment BankingDepositLoanDebit CardCredit CardThe CityMaxx CardNRBNFBCity GlobalAccelerated BankingCity MuldhonCity ShebaCity ShulovCity MunafaCity NokshiCity AgroSME CentreManarah Current A/CManarah Savings A/CManarah Term DepositManarah Monthly DepositManarah Personal FinanceManarah Auto FinanceManarah Hajj Deposit SchemeManarah Schedule of ChargesOvernight DepositTerm DepositForeign ExchangeLocal Currency Spot & ForwardDerivatives

Corporate BankingCity Bank is a major player in Bangladesh wholesale banking industry to offer the full scope of innovative, customized solutions and services. They offer service at the highest level. Our focus is not on short-term profit, but on building long-term relationships and standing by our clients whenever they need us.They have a unique business focus on enabling project financing, trade, investment and supply chain financing for clients. They aim to be a one-stop gateway for corporate and financial institutions looking to extend their business. And they are committed to using our country wide network to facilitate our clients growing trade and investment flows and supply chain financing needs across our business footprint.They focus exclusively on corporate and institutional clients domiciled or conducting business in our footprint, offering clients access to our extensive branch network and award-winning suite of state of the art services.City Bank fully understands the importance of time, convenience and efficiency to the success of your business. They make easy the complex financial world for you and help you maximize every opportunity.City Retail BankingOne of the most remarkable success stories of last 50 years banking industry globally has been the conceptualization and innovative execution of banking with individual customers, their friends & families. The industry has termed it as Retail Banking or Personal Banking or Consumer Banking; and it has now at a very rapid pace become the major revenue line for most of the top banks in the world. City Bank, too, recently has started its journey in Retail Banking .Their aim is clear. They want City Bank to become the most preferred bank to all individual clientele of the country, at least of the cities and towns where they operate. They want to provide their customers the best-in-class services, innovative products and financial solutions from smart outlets all with a big smile that conveys and generates happiness all the way !Table-4: Retail banking productsDepositLoanNRBNFBCard

Current AccountSavings AccountCity OnayashCity ShomridhdhiCity ProjonmoCity LchchapurunCity Youth School PlanCity Youth College PlanFDRCity DriveCity SolutionCity ExpressCity DoubleCity ScholarNRBStudent FileMedical FileCity WalletI-BankingLocker ServiceDebit Card Visa Debit Card MasterCard Debit CardCredit Card The American Express Card VISA Classic Local VISA Classic Dual VISA Gold Local VISA Gold Dual The City Maxx Card

SME BankingSME Banking of City Bank is assuming a new and modern dimension. It is entering in to a wider horizon. The philosophy of extending banking services to SMEs of the country is to meaningfully push every one of them up to the next level of respective business operations. The upward push would be meaningful as they would be business wise competitive for a sustainable future. It is therefore would be turning in to an abode of SMEs to grow to the next level. Hence, the bank has named it City Business for taking SMEs to the next level.For the first time in the history of City Bank, SME Banking business processes are going to be driven thru a centralized platform model. This is a fundamental move away from a 25 years legacy system of decentralized geography based branch banking model.Islamic BankingCity Bank introduces City Manarah Islamic Banking. City Manarah is here to guide you and manage your finances in a fully Islamic Shariah Compliant way. It offers a wide variety of deposit and investment products such as Manarah Savings, Manarah Current, Manarah Term Deposit and Manarah Monthly Deposit Schemes. Each account is designed to meet your financial needs with best value for your money.For your better understanding please take a closer look at all the Manarah deposit and investment products and also visit your nearest branch at Dhaka, Chittagong, Sylhet, Comilla, Rajshahi and Khulna for Islamic Banking services and productsCity Bank Treasury & Market Risk DivisionCity Bank has a dedicated Treasury team who is capable of providing all treasury Solutions. Through our foreign correspondent business partners CBL is providing a wide range of Treasury products. In CBL Treasury, there are four teams who are specialized in their own area to ensure the best possible solution to our customer requirement. CBL has following teams in the Treasury:1. Foreign Exchange2. Money Market3. Corporate Sales4. ATM & Market ResearchOrganizational Profile of Social Islami Bank LtdAn Overview of the BankThe Social Islami Bank Ltd. (SIBL), a second-generation bank, operating from 22, November1995 based on Shariah Principles. SIBL is a capitalized new generating Bank with an authorized capital of Taka 4000 Million in 2008 and paid up capital of Taka 585 million in 2008. SIBL has now 76 branches all over the country with two subsidiary companies SIBL Securities Ltd. & SIBL Investment Ltd. Targeting poverty, Social Islami Bank Ltd. is indeed a concept of 21st century participatory three sector banking model in one. in the formal sector, it works as an Islami participatory Commercial Bank with human face approach to credit and banking on the profit and loss sharing: it is a Non-formal banking with informal finance and credit package that empowers and humanizes real poor family and create local income opportunities and discourages internal migration; it is a Development Bank intended to monetize the voluntary sector and management of Waqf, Mosque properties and introducing cash Waqf system for the first time in the history. In the formal corporate sector, this Bank would, among others, offer the most up to date banking services through opening of various types of deposit and investment accounts, financing trade, providing guarantee, opening letters of credit, collection of bills, leasing of equipment and consumers durable, hire purchase and installment sale for capital goods, investment in low-cost housing and management of real estates, participatory investment in various industrial, agricultural, transport, educational and health projects.The bank has taken a renewed drive aiming at consolidating its business in more focused areas covering SME and Agro-finance with emphasis on searching for alternative delivery channel under which SMS banking and mobile based remittance payment systems that are gradually introduced to disseminate the SIBL services to the doorsteps of the customers. The bank has already introduced Internet banking and launched some new products to strengthen its business. The products are Sonali Din, Sommridhir Sopan, Sonchoy Protidin, Swopner Shiri, Shukher Thikana, Sabuj Shayanho, and Zamil, ATM, Debit, card.SIBL is a pioneer in introducing on-line banking among all the Islami Banks of the country with state-of-the-art banking software, which will enable the bank to perform as any branch real time banking service to the clients. The state-of-the-art banking software of the bank will enable to perform as any branch real time banking service to the clients. SIBL is supported by core banking solutions and their products & services are strongly backed by IT infrastructure, which are upgraded & expanded on continuous basis. SIBL has set its strategy to convert all its banking activities from traditional branch-based banking system to an ideal blending of both centralized processing unit (CPU) and effective operation of branch that based on modern essence of banking.SIBL is quite conscious of its social business responsibilities and is always trying to participate in various social programs in the country under its CSR portfolio giving special emphasis on health, habitat & education. The bank ensures to provide better integrated idea of formal, informal & voluntary banking in the same platform. SIBL has its unique feature to mobilize capital through CASH WAQF program.SIBL lays emphasis on employment generated, environment friendly and green banking based investment keeping an eye on equitable distribution of resources over geographical territory for sustainable growth of macro economy of the country. The Banks continuous effort has been to increase the shareholders value, and be valued as a compliant organization. The Corporate Governance systems in SIBL ensure transparency and accountability at all levels in conducting business. SIBL in its journey towards continuous excellence has changed its brand logo recently. They take pride in their new logo.VisionIn its journey towards continuous excellence they are striving to become the countrys leading Islami Bank offering one-step service of an wide range of value added products and services meeting the needs of their customers; conducting their business ethically in accordance with the laws of Shariah while optimizing best utilization of the most modern state-of-the-art technological solutions through creation ofpro-active organizational culture based on sound team spirit, fairness, mutual understanding and pragmatic leadership always remaining open to new ideas and adaptable to the best practices in the market ensuring recognition and quality banking experience to their Customers and deliver best value to all their stakeholders as well.MissionFollowing are the missions of the SIBL: Transformation into a service-oriented technology-driven profit earning Bank Ensure fast, accurate and best-in-class customer service Balanced & sustainable growth strategy Optimum return on shareholders equity Introducing innovative Islami Banking Products Attract and retain high quality human resources Empowering real poor families and create local income opportunities Providing support for social benefit organizations by way of mobilizing Funds and social servicesvaluesFollowing are the values of the SIBL:Honesty: To be honest is ordained by the scripture they stick to this value in all their service provision.Transparency: Remaining transparent in all acts is a virtue thats builds trust they adhere to it.Efficiency: Efficiency implies perfection in any job done they strive to render full satisfaction with it.Accountability: To be accountable is to be responsible and above any suspicion they are dutifully there.Reliability: They infuse reliability in customers mind through habitual acts of dedicated service.Innovation: Their minds and eyes are open to the evolution in quality of life to innovate further benefits for the service takers.Flexibility: Flexibility leads to better understanding and greater satisfaction they pursue the quality.Security: Customers must feel secure with all their products and services they keep on ensuring it.Technology: Modern life is technology dependent they keep looking for the latest development to provide the best in ease to their clients.Overseas Operations of SIBLSocial Islami Bank has set up joint venture Exchange Company named Gulf Overseas Exchange Co. Ltd, in Oman contributing 25% of its paid up capital. The present paid up capital of the company is Riyal Omani 1, 82,000.00. The Chairman of the company is the-x-minister of the government of Oman. The exchange company, established in 1985, now has three branches in Oman and is being managed fully by officials of SIBL. The company is running in profit. SIBL is also exploring possibilities of opening branches in the Middle East, Switzerland and USA. SIBL has entered into the Management contract with a Kuwait Exchange company to provide management and technical services. SIBL has acquired equity and management of Nepal Arab Bank Ltd. which is the largest and highly profitable Private Commercial Bank in Nepal.Non-Formal and Voluntary Sector Banking ProgramsSince the opening of the Bank on 22ndNovember 1995, Non-Formal sector has started implementing its programs in various areas. Those are as follows:A. Environment-friendly program: Tokai ProjectThe project has a special strategic value. Till December 1995 only one group consisting of six members was formed at Hossain Marker, Utter Badda, Gulshan Thana. Group savings from the members is under process. Formation of more groups of Tokai Pannaya Bavshee (Tokai goods Traders) is under process at different areas including Hossain MarketB. Real Life Non-formal School of ManagementAs a part of environmentally friendly program, the bank is committed to educate the Tokai and this has a worldwide strategic value. Till December 1995 one Tokai Non-formal School has been started at Hossain Market, Uttar Badda, Gulshan, and Dhaka with30 students with a view to giving them real-life education with Islami orientation. In the process of learning, the Tokai developed propensity for savings. As a result they are regularly depositing a small portion of their income as savings.C. Mosque Property Development ProgramConstruction of Mini Market at Kazi Bari Mosque, Uttar Khan, Uttara, Dhaka, consisting of 4 shops has been completed where Bank has invested Tk.1.28 laces. Recovery rate in this sector is 100 percent.D. Capital Market Instruments-Securitization of voluntary sectorIn the voluntary sector, the bank is in the process of organizing Voluntary Capital Market operation for mobilization of necessary fund and in the process of developing the following financial instruments with different sets of rules in con formality with Shariah:Waqf Properties Development Bond (specific and general). Cash Waqf Deposit Certificate (specific and general). Family Waqf Certificate. Mosque Properties Development Bond (specific and general). Mosque Community Share. Quarn-e-Hasana Certificate (specific and general). Zakat/Ushar payment Certificate. Non-Muslim Trust Properties Development. Municipal Properties Development Bond (specific and general).The value of all the bonds and Qurd-e-Hasana Certificate are guaranteed by the Bankagainst surrender of the instruments on maturity.Corporate Social Responsibility (CSR)As an Islami Bank, Social Islami Bank Limited is quite conscious of its social responsibility and always trying to participate in social cause program in the country. The bank is committed to serve the society at large through its family empowerment Micro Investment, Micro Enterprise and SME programs under non-formal sector, social capital mobilization through CASH WAQF and other programs under voluntary sector. The bank has already formed CSR Desk with the aim to serve humanity through different philanthropic activities giving emphasis on health and Education. The bank believes that any kinds of social & philanthropic activities would improve the quality of the lives of the poor masses of the country. The Board of Directors of the Bank consists of winning personalities in respective area of Trade, Commerce & Industry of the country. Under the proactive guidance, policy and direction of the Board, Management conducts its business operations. The Corporate Governance systems in SIBL ensure transparency and accountability at all levels in conducting business. The Shariah Supervisory Committee is consisting a group of prominent Islami Scholars, Economists and Lawyers to advise the Managementon Shariah matters relating to the business operations. The Board of Directors provides leadership and direction to the Management to attain goals and objectives of the bank. The solid performance of the bank that achieved is due to the divine blessings of Allah Sobhanahui Tala and constant guidance, cooperation and support of the Board & Shariah Supervisory Committee as well as committed, dedicated and hard work of the Management Team.Products Offered by SIBLTable-5: Products Offered by SIBLProducts & Services

Investment ProductsDeposit ProductsCardsE-Banking

Bai-MuazzalMudaraba Scheme DepositsSIBL Credit CardInternet Banking

HPSMAl Wahid Current AccountVisa Islami Credit Card (Dual)Mobile Banking

HPSM-IjaraMudaraba Savings DepositVisa Islami Credit Card (Local)SMS Banking

MurabahaMudaraba Term DepositSIBL Zameel Debit Card

MusharakaMudaraba Notice Deposit

Bill PurchaseCash Waqf. Deposit

Bai-Salam (PC)

Quard

Graphical Financial Analysis of TheCity Bank Ltd.The City Bank Ltd. five years financial summary at a glanceTable-6: Five Years Financial Summary of City Bank Ltd. at a glance(Taka in million unless specified)Income Statement

Years20122011201020092008

Interest Income88109415709057434669

Interest Expenses54764997351636723163

Non- Interest Income58553338372822971874

Non- Interest Expenses36053560320121121625

Profit Before Provision27494196410022561755

Profit Before Tax38583468299913881014

Profit After Tax55020181849819398

Balance Sheet

Authorized Capital10000100001000017501750

Paid-up Capital63185055388915711366

Reserve Fund & Surplus1135612801763042932851

Total Shareholders Equity18269178561151958644217

Deposits8585883818674206238445034

Loans and Advances8725876807603274348634421

Investments182041613112474105869074

Fixed Assets59235950320627882514

Total Assets131276115736908987646757115

Off-Balance Sheet Exposures1689815866203871044710921

Foreign Exchange Business

Export2305622033186461381514766

Import4558943474381552871830894

Remittance469234218924496179339828

Foreign Exchange Business115899107696812976046655488

Risk weighted Assets1175751110494571535919

Core Capital (Tier-I)1165711322926035352711

Supplementary Capital (Tier-II)38513714312016251243

Tier I Capital Ratio8.4%9.6%8.3%7.7%7.5%

Tier II Capital Ratio4.3%3.2%2.8%3.6%3.5%

Total Capital Adequacy Ratio12.7%12.8%11.2%11.3%11.0%

Credit Quality

Provision for Unclassified Loans152014001040799420

Provision for Classified Loans12031101970708780

Percentage of NPL over Total Loans & Advances4.4%3.4%4.4%4.9%6.3%

Share Information

No. of Shares Outstanding (million)456.05505.5138.915.713.7

EPS.8143.752.125.3

Diluted

Cash Dividend

Stock Dividend22.0%25.0%30.0%25.0%15.0%

Market Value Per share (Tk.)50531000730452

Price Earning Ratio (Times)1213171418

Net Asset value Per Share3235296373309

Operating Performance Ratio

Credit Deposit Ratio84.5%85.7%89.5%69.7%76.4%

Cost to Income Ratio47.8%45.9%43.8%48.4%48.1%

Total Operating Income per Employee2.902.82.71.81.6

Total profit per Employee1.51.51.50.90.8

Cost of fund8.5%6.4%4.9%6.1%6.9%

Cost of Deposits7.6%6.4%5.3%6.6%7.1%

Yield on Loans and Advances14.2%13.1%12.7%13.1%13.5%

Return on Asset1.80%2.0%2.2%1.2%0.8%

Return on Equity12.50%13.7%21.3%16.2%11.2%

Distribution Network


Number of ATM163122855023

Number of Employees28902772268524242134

Number of Foreign Correspondents542538533513501

Graphical AnalysisProfit Before Tax :The table (Table-) showsProfit before Taxof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-7: Profit Before Tax(In million Taka)Years20122011201020092008

Profit Before Tax38583468299913881014

Percentage Change on the basis of Base year 20073.804733(%)3.420118(%)2.957593(%)1.368836(%)1

Source: Table-6 City Bank Ltd.s five Years Financial Summary.Graph-1: Profit Before Tax (In million Taka)Source:Table-7FindingsThe graph showed the profit before tax of city bank that was growing from the years 2008 to 2012. Here the table of profit before tax of city bank showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2012 the net profit before tax was more than 2008 profit before tax which for why the graph trend was upward .Deposits :The table (Table-) showsDepositsof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-8: Deposits of CBL(In million Taka)Years20122011201020092008

Deposits8585883818674206238445034

Percentage Change on the basis of Base year 20071.906515(%)1.861215(%)1.497091 (%)1.386063(%)1

Source: Table- City Bank Ltd.s five Years Financial Summary.Graph-2:Deposits (In million Taka)Source:Table-8FindingsThe graph showed the deposits of city bank that was growing from the years 2008 to 2012. Here the table of deposits of city bank showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2010 the deposits was more than 2008 deposits which for why the graph trend was upward. In 2012 the percentage change was too high than the previous years on the basis of base year 2008.Total Assets :The table (Table-) showsTotal Assetsof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-9: Total Assets of CBL(In million Taka)Years20122011201020092008

Total Assets131276115736908987646757115


Source: Table-6 City Bank Ltd.s five Years Financial Summary.Source:Table-9FindingsThe graph showed the total assets of city bank that was growing from the years 2008 to 2012. Here the table of total assets of city bank showed the percentage change on the basis of base year 2008, in this the growing rate was positive that means from the year 2010 the total assets was more than 2008 total assets which for why the graph trend was upward. In 2012 the percentage change was too high than the previous years on the basis of base year 2008.Shareholder Equity :The table (Table-) showsShareholders Equityof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-10: Shareholders Equity of CBL(In million Taka)Years20122011201020092008

Shareholder Equity18269178561151958644217


Source: Table-6 City Bank Ltds five Years Financial Summary.Source:Table-10FindingsThe graph showed the shareholders equity of city bank that was growing from the years 2008 to 2012. Here the table shareholder equity of city bank showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 shareholder equity was more than 2010 shareholders equity which for why the graph trend was upward. In 2012 the percentage change was too high than the previous years on the basis of base year 2008.Earnings Per Share :The table (Table-) showsEarnings Per Shareof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-11: Earning Per Share of CBLYears20122011201020092008

Earnings Per Share4.243.752.125.3


Source: Table-6 City Bank Ltds five Years Financial Summary.Source:Table-11FindingsThe graph showed the earning per share of city bank that was growing from the years 2008 to 2009. Here the table earning per share of city bank showed the percentage change on the basis of base year 2008, The EPS 2009 EPS was booming more than 2008 after that EPS was extremely reduced than the previous years.Import Business :The table (Table-) showsImport Businessof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-12: Import Business of CBL(In million Taka)Years20122011201020092008

Import4558943474381552871830894


Source: Table-6 City Bank Ltd.s five Years Financial Summary.Source:Table-12FindingsThe graph showed the import business of city bank that was growing from the years 2008 to 2012. Here the table import business of city bank showed the percentage change on the basis of base year 2008, Here from the year 2008 to 2009 import business was fluctuated after that it was increased that leads to upward trend.Export Business :The table (Table-) showsExport Businessof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-13: Export Business CBL(In million Taka)Years20122011201020092008

Export2305622033186461381514766


Source: Table-6 City Bank Ltd.s five Years Financial Summary.Source:Table-13FindingsThe graph showed the export business of city bank that was fluctuated from the years 2008 to 2012. Here the table export business of city bank showed the percentage change on the basis of base year 2008, Here from the year 2008 to 2009 export business was decreased and after that it was increasing.Remittance Business :The table (Table-) showsRemittance Businessof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-14: Remittance Business of CBL(In million Taka)Years20122011201020092008

Remittance469234218924496179339828


Source: Table-6 City Bank Ltds five Years Financial Summary.Source:Table-14FindingsThe graph showed the remittance business of city bank that was growing from the years 2008 to 2012. Here the table remittance business of city bank showed the percentage change on the basis of base year 2008, Here from the year 2008 the remittance business was growing in a high rate. In 2012 remittance business was reached in a peak point.Foreign Exchange Business :The table (Table-) showsForeign Exchange Businessof City Bank Ltd. from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-15: Foreign Exchange Business of CBL(In million Taka)Years20122011201020092008

Foreign Exchange Business115899107696812976046655488


Source: Table-6 City Bank Ltd.s five Years Financial Summary.Source:Table-15FindingsThe graph showed the foreign exchange business of city bank , that was growing from the years 2008 to 2012. Here the table foreign exchange business of city bank showed the percentage change on the basis of base year 2008, we can say that their foreign exchange business was growing in a positive rate thats lead to show upward trend.Graphical Financial Analysis ofSocial Islami Bank Ltd.Social Islami Bank Ltd. five years financial summary at a glanceTable-16: SIBLs five Years Financial Summary.(Taka in million)Particulars20122011201020092008

Authorized Capital1000010000.00100004000.004000.00

Paid up Capital6393.926393.922987.812691.721309.88

Total Shareholder Equity9509.889412.214198.773555.751867.36

Capital Base (Tire I & II)9856.359534.524678.563914.622168.22

Total Deposits75346.5066852.5544850.7731588.1624099.82

Client Deposits85307.5156661.1639833.3727663.6222065.79

Investments (Loans & Advances)71254.4553908.5836680.2826580.5819951.30

Investments (Shares & Securities)4623.125241.363049.721310.66853.46

Import85464.5168198.5039459.5022753.3018343.80

Export456673497521372.2014433.2012674.30

Remittance10556.565134.901099.401923.502341.10

Foreign Exchange Business115899.35108308.3061931.0039110.0033363.20

Operating Profit1980.022768.801638.631064.31787.37

Profit before Tax2768.561901.281136.69726.88354.81

Fixed Assets2248.422134.87914.74649.61443.28

Total Assets89567.4084406.1855168.5439980.8229808.88

Stock Dividend14%11%10%

Cash Dividend10.50%

Investments as a % of total deposits80%80.63%81.78%84.15%82.79%

Investments Deposits Ratio94%94.65%92.08%96.08%90.42%

Risk Weighted Capital Adequacy Ratio15.1%13.17%9.33%14.97%10.87%

Ratio of Classified Investments to total Investment3.20%3.93%4.76%3.19%4.38%

No. of Foreign Correspondents22702250225022502200

Number of Employees186413751252950750

Book Value Per Share (Tk.)101010100100

Earnings Per Share1.501.812.1518.3917.20


Source: Annual Report 2012Graphical Financial AnalysisProfit before Tax :The table (Table-) showsProfit before Taxof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-17: Profit Before Tax of SIBL (In million Taka)Years20122011201020092008

Profit Before Tax2768.561901.281136.69726.88354.81


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-17FindingsThe graph showed the profit before tax of SIBL that was growing from the years 2008 to 2012. Here the table of profit before tax of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the profit before tax was more than base years profit before tax which for why the graph trend was upward. In 2012, profit before tax was the highest growing year (7.80 times) from the base year.Deposits :The table (Table-) showsDepositsof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-18: Deposits of SIBL (In million Taka)Years20122011201020092008

Deposits75346.5066852.5544850.7731588.1624099.82


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-18FindingsThe graph showed the deposits of SIBL that was growing from the years 2008 to 2012. Here the table of deposits of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the deposits was more than base years deposits which for why the graph trend was upward. In 2012, a deposit was the highest growing year (3.12 times) from the base year.Total Assets :The table (Table-) showsTotal Assetsof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-19: Total Assets of SIBL (In million Taka)Years20122011201020092008

Total Assets89567.4084406.8155168.5439980.8229808.88


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-19FindingsThe graph showed the total assets of SIBL that was growing from the years 2008 to 2012. Here the table of total assets of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the total assets was more than base years total assets which for why the graph trend was upward. In 2012, total assets were the highest growing year (3.004 times) from the base year.Shareholder Equity :The table (Table-) showsShareholders Equityof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-20: Shareholders Equity of SIBL (In million Taka)Years20122011201020092008

Shareholder Equity9509.889412.214198.773555.751867.36


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-20FindingsThe graph showed the shareholders equity of SIBL that was growing from the years 2008 to 2012. Here the table of shareholders equity of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the shareholders equity was more than base years shareholders equity which for why the graph trend was upward. In 2012, shareholders equity was the highest growing year (5.09 times) from the base year.Earnings Per Share :The table (Table-) showsEarnings per shareof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-21: Earning Per Share of SIBLYears20122011201020092008

Earnings Per Share1.501.812.1518.3917.2


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-21FindingsThe graph showed the earning per share of SIBL that was fluctuating from the years 2008 to 2012. Here the table of earning per share of SIBL showed the percentage change on the basis of base year 2008, from the year 2008 to 2009 earnings per share was increased, from year 2010 to 2011 earnings per share was decreased and after that earning per share was decreased in a high rate. In 2009, earning per share was the highest growing year (1.06 times) from the base year.Import Business :The table (Table-) showsImport Businessof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-22: Import Business (In million Taka)Years20122011201020092008

Import85464.5168198.539459.522753.3018343.80


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-22FindingsThe graph showed the import business of SIBL that was growing from the years 2008 to 2012. Here the table of import business of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the import business was more than base years import business which for why the graph trend was upward. In 2012, import business was the highest growing year (4.65 times) from the base year.Export Business :The table (Table-) showsExport Businessof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-23: Export Business of SIBL (In million Taka)Years20122011201020092008

Export456673497521372.214433.312674.3


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-23FindingsThe graph showed the export business of SIBL that was growing from the years 2008 to 2012. Here the table of export business of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the export business was more than base years export business which for why the graph trend was upward. In 2012, export business was the highest growing year (3.60 times) from the base year.Remittance Business :The table (Table-) showsRemittance Businessof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-24: Remittance Business of SIBL (In million taka)Years20122011201020092008

Remittance10556.565134.91099.41923.52341.1


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-24FindingsThe graph showed the remittance business of SIBL that was growing from the years 2008 to 2012. Here the table of remittance business of SIBL showed the percentage change on the basis of base year 2008, From year 2009 to 2011 remittance business was declining after that in 2012, remittance business was the highest growing year (4.50 times) from the base year.Foreign Exchange Business :The table (Table-) showsForeign Exchange Businessof SIBL from the year 2008 to 2012 and Percentage Change on the basis of Base year 2008.Table-25: Foreign Exchange Business of SIBL (In million Taka)Years20122011201020092008

Foreign Exchange Business115899.35108308.3619313911033363.2


Source: Table-16 SIBLs five Years Financial Summary.Source:Table-25FindingsThe graph showed the foreign exchange business of SIBL that was growing from the years 2008 to 2012. Here the table of foreign exchange business of SIBL showed the percentage change on the basis of base year 2008, In this the growing rate was positive that means from the year 2008 the foreign exchange business was more than base years foreign exchange business which for why the graph trend was upward. In 2012 foreign exchange business was the highest growing year (3.47 times) from the base year.Graphical Comparative Analysis between The City Bank And Social Islami Bank Ltd.Profit Before Tax :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding profit before tax.Source: Annual reports from 2008-2012.The profit before tax measure that looks at a banks profits before the company has topay corporate incometax. This measurededucts all expenses from revenue including interest expenses andoperating expenses,but it leaves out the payment of tax.The graph showed the profit before tax of city bank ltd. and social Islami bank ltd. that was growing from the years 2008 to 2012. Both banks trend was growing. Comparatively we can say that city banks performance was the better than social Islami bank ltd.Deposits :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding deposits.Source: Annual reports from 2008-2012.Bank deposits are made to deposit accounts at a banking institution, such as savingsaccounts, checking accounts and money market accounts. The account holder has the right to withdraw any deposited funds, as set forth in the terms and conditions of the account. The deposit itself is a liability owed by the bank to the depositor (the person or entity that made the deposit), and refers to this liability rather than to the actual funds that are deposited.The graph showed the deposits of city bank ltd. and social Islami bank ltd. that was growing from the years 2008 to 2012. Both banks trend was upward. Generally, we can say that city banks deposits was more than social Islami bank ltd.Comparatively, city banks performance was better than SIBL regarding deposits.Total Assets :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding total assets.Total assets of bank refers that the sum of all cash, investments, furniture, fixtures, equipment, receivables, intangibles, and any other items.The graph showed the total assets of city bank ltd. and social Islami bank ltd. that was growing from the years 2008 to 2012. Both banks trend was upward. Generally, we can say that city banks total assets was more than social Islami bank ltd. comparatively, city banks performance was better than SIBL regarding total assets.Shareholder Equity :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding shareholders equity.Shareholders equity represents the equity stake currently held on the books by a firms equity investors. Shareholders equity is often referred to as the book value of the company, and it comes from two main sources. The first and original source is the money that was originally invested in the company, along with any additionalinvestments made thereafter. The second comes from retained earnings that the company is able to accumulate over time throughits operations.The graph showed the shareholders equity of city bank ltd. and social Islami bank ltd. that was growing from the years 2008 to 2012. Both banks trend was upward. Generally, we can say that city banks shareholders equity was more than social Islami bank ltd. comparatively, city banks performance was better than SIBL regarding shareholders equity.Earnings Per Share :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding earning per share.Earnings per share are generally considered to be the single mostimportant variable in determining a shares price.It is also a major component used to calculate the price-to-earnings valuation ratio.It refers that, the portion of a companys profit allocated to each outstanding share of common stock.Earnings per shareserve as an indicator ofa companys profitability.The graph showed the earning per share of city bank ltd. and social Islami bank ltd. that was declining from the years 2008 to 2012. Both banks trend was downward. Generally, we can say that city banks earnings per share was more than social Islami bank ltd. Its difficult to say which one was on better position, but its true that city banks shareholder was more reluctant to hold that share because of the declining trend of EPS.Import Business :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding import business.In Bangladesh most of the goods are imported from different countries all over the world. In this activities banks play a vital role to conduct that business. To conduct that operation bank gains different service charges and others. Here city bank ltd and social Islami bank ltd. both conduct the same operation.The graph showed the import business of city bank ltd. and social Islami bank ltd. that was growing from the years 2008 to 2012. Both banks trend was upward. Generally, we can say that SIBLs import business was more than city bank ltd. Comparatively, social Islami banks performance was better than city bank ltd. regarding import business.Export Business :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding export business.Bangladesh is going to be export oriented country, every year which export huge amount of agro-products, medicine and garments product in different countries all over the world. In this activities banks play a vital role to conduct that business. To conduct that operation bank gains different service charges and others. Here city bank ltd. and social Islami bank ltd. both conduct the same operation.This graph showed the export business of city bank ltd. and social Islami bank ltd. from the years 2008 to 2012. Social Islami banks trend was upward and city banks export business trend was downward from the year 2008 to 2009 after that it was growing. Generally, we can say that SIBLs export business was more than city bank ltd. Comparatively, social Islami banks performance was better than city bank ltd. regarding export business.Remittance Business :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regarding remittance business.Bangladesh is considered as one of the major labor exporting country of the world. Since independence huge number of Bangladeshis went abroad and also in every year the numbers of expatriate are growing which lead to increase the foreign remittance of Bangladesh government. To conduct that operation bank gains different service charges and others. Here city bank ltd. and social Islami bank ltd. both conduct the same operation.This graph showed the remittance business of city bank ltd. and social Islami bank ltd. from the years 2008 to 2012. City banks trend was upward and social Islami banks remittance business trend was downward from the year 2008 to 2010 after that it was growing. Generally, we can say that city banks remittance business was more than social Islami bank ltd. Comparatively, city banks performance was better than social Islami bank ltd. regarding remittance business.Foreign Exchange Business :The graph- provides the comparative position between The City Bank Ltd. and Social Islami Bank Ltd. regardingforeign exchange business.The graph showed the foreign exchange business of city bank ltd. and social Islami bank ltd. that was growing from the years 2008 to 2012. Both banks trend was upward. In 2011 both banks foreign exchange business stand in a same point. Generally, we can say that city banks foreign exchange business was more than the social Islami bank ltd from the year 2008 to 2011. Comparatively, city banks performance was better than the social Islami bank ltd. regarding foreign exchange business.Comparative Ratio AnalysisReturn on Equity (ROE)The formula of return on equity is:Table-26:Return on Equity (ROE)Return on Equity (ROE)

YearsCity BankSIBL

200811.20%10.82%

200916.20%12.14%

201021.30%15.31%

201113.70%13.44%

201212.50%12.20%

Source:Annual Reports 2008-2012.The amount of net incomereturnedas a percentageof shareholders equity.Return on equitymeasures a corporations profitabilityby revealing how muchprofit a company generateswith the money shareholders have invested.The ROE is usefulfor comparing the profitability of a company to that of other firms in the same industry. If the ratio is higher, it indicate that the firms effective utilization of equity. Here the city banks performance is better than SIBL. The ROE of city bank fluctuating over the years but SIBLs ROE is growing. In 2012 both banks ROE is declining. Comparatively, city banks performance is better than SIBLReturn on Assets (ROA)An indicator of how profitable a company is relative to its total assets.ROA gives an ideaas to how efficientmanagement isat using its assets to generate earnings.Calculated by dividing a companys annual earnings by its total assets, ROA is displayed as a percentage.The formula for return on assets is:Table-27:Return on Assets (ROA)Return on Assets (ROA)

YearsCity BankSIBL

20080.80%0.68%

20091.20%1.08%

20102.20%1.17%

20112.00%1.50%

20121.80%1.60%

Source:Annual Reports 2008-2012.Source: Table-27ROAtells you what earnings were generated from invested assets. ROA for public companies can vary substantially and will be highly dependent on the industry. This is why when using ROA as a comparative measure,it is best to compare it againstthe ROA of a similar company. Here both banks ROA was growing over the years. Comparatively city banks percentage of ROA was greater than the SIBL. In 2012 city banks ROA was declining and SIBLs ROA is growing.Return on Investment (ROI)A performance measure used to evaluate the efficiency of aninvestment or to compare the efficiency of a number of different investments. To calculate ROI, the benefit (return) of an investment is divided by the cost of the investment; the result is expressed as a percentage or a ratio.The formula of return on investment is:Table-28:Return on Investment (ROI)Return on Investment (ROI)

YearsCity BankSIBL

20084.39%23.68%

20097.74%32.92%

201014.82%21.08%

201112.51%24.14%

201212.00%26.15%

Source:Annual Reports 2008-2012.Return on investmentis a very popular metric because of its versatilityand simplicity. That is, if aninvestment does not havea positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken. Here SIBLs ROI was greater than the city bank, so we can say that comparatively SIBLs investment was effectively utilized than the city bank. It was true that SIBLs ROI was fluctuated, but that was above the city banks graph.Earnings per Share (EPS)The portion of a companys profit allocated to each outstanding share of common stock.Earnings per shareserve as an indicator ofa companys profitability. The formula of EPS is:Table-29:Earnings per Share (EPS)Earning Per Share

YearsCity BankSIBL

200825.317.2

200952.118.39

20103.72.15

201141.81

20124.21.50

Source:Annual Reports 2008-2012.Earnings per share are generally considered to be the single mostimportant variable in determining a shares price.It is also a major component used to calculate the price-to-earnings valuation ratio.Here most of the times city banks EPS was grater than the SIBLs EPS. In 2010 both condition was poor for declining the EPS but after that both EPS was growing. Comparatively, we can say that city banks performance was good.Equity MultiplierLike all debt management ratios, the equity multiplier is a way of examining how a company uses debt to finance its assets. Also known as the financial leverage ratio or leverage ratio.The formula of equity multiplier is:Table-30:Equity MultiplierEquity Multiplier (Times)

YearsCity BankSIBL

200813.5415.96

200913.0411.24

20107.8913.14

20116.488.97

20126.007.15

Source:Annual Reports 2008-2012.In other words, this ratio showsa companystotal assetsper dollar of stockholders equity. A higher equity multiplier indicates higher financial leverage, which means the company is relying more on debt to finance its assets. Here both banks equity multiplier was declining over the years. Comparatively its too difficult to say which position was good.Total operating income per employeeTotal operating income per employee measures managements ability to use their employee resources effectively to create profits for the company. The formula of total operating income per employee is:Table-31:Total operating income per employeeTotal operating income per employee (million)

YearsCity BankSIBL

20081.601.05

20091.801.12

20102.701.31

20112.802.01

20122.902.20

Source:Annual Reports 2008-2012.When making a comparison between two banks, the business with the higher value for income per employee is the more efficient bank. When drawing conclusions about the comparative performance analysis of a bank its one of the effective tools to judge the efficiency of management. Here both banks income per employee was growing. Comparatively we can say, city banks performance was better than SIBL.Assets Utilization RatioThe asset utilization ratio measures managements ability to make the best use of its assets to generate revenue. Like all ratios, this is just an indicator. A high ratio may mean more efficient management. The formula of assets utilization ratio is:Table-32:Assets Utilization RatioAssets Utilization Ratio(Times)

YearsCity BankSIBL

20080.030.02

20090.030.03

20100.050.03

20110.040.03

20120.030.02

Source:Annual Reports 2008-2012.Here city banks asset utilization ratio was similar from the year 2008 to 2009, after that it was growing. In 2012 city banks asset utilization ratio was downward. From year 2008 to 2009 SIBLs asset utilization ratio was growing after that it was constant. Comparatively, we can say that city banks performance was better than SIBL.Tax Management Efficiency RatioThe tax management efficiency ratio of a fund measures what percentage of a fund earnings are lost to taxation. Funds that lose a lot of money to taxes have low efficiency and are less desirable, while those that lose little to taxes have a high tax management efficiency ratio and greater desirability. The formula of tax management efficiency ratio is:Table-33:Tax Management Efficiency RatioTax Management Efficiency Ratio

YearsCity BankSIBL

200823%26%

200936%41%

201045%39%

201148%46%

201250%48%

Source:Annual Reports 2008-2012.Here, from 2008 to 2009 city banks tax management efficiency ratio was declined after that it was growing that lead to upward trend. SIBLs tax management efficiency ratio was fluctuated from the year 2008 to 2012. Comparatively we can say that city banks performance was better than SIBL regarding tax management efficiency ratio.Findings & RecommendationsAnd ConclusionFindings of City Bank LtdDuring the period of project I have achieved vast experiences that enrich my knowledge of banking extensively. Here I have tried to present my experiences and knowledge in order to provide a better judgment. CBL is one of the fasts growing and committed private commercial bank in the country. It conducts business activities efficiently around the country to achieve its objectives, and goals and gradually forwarding towards its mission and vision. The bank have been achieving continuous growth rate in all spares of banking operation since its establishment.More findings about the Organization Understanding customers savings trend and market demand the bank focus on different financial innovation to promote their financial growth. Its profit is growing over the years. Total assets growth trend is positive and upward. Shareholders equity of city bank is growing over the years. Earnings per share condition are too poor that is declining. Revenue from import and export business are growing. City bank is more conscious about the liquidity of bank. Top management gives its highest attention in the operation of fund management.Recommendations of City Bank LtdAfter analysis of all gathered information and other relevant documents, CBL should carefully consider following matters: ROA and ROE should increase more. Assets utilization capacity should be improved. At present CBL perform business activities through 89 of its branches but they should open more branches in order to reach to more customers to accumulate more funds. The proper managerial observation and cooperation are required. All branches should proper maintain all documents in daily basis. They should launch mobile banking service. Top management must ensure the proper implication of IT in all branches. City Bank Ltd. need to increase own ATM booth all over the country. City Bank Ltd. should more concentrate on different kind of financial innovation. City Bank Ltd. should implement internet banking service. City Bank Ltd. should hire more efficient financial professional to develop their financial policies. Foreign Exchange expertise should be more recruited. Need to update their networking system as well as updated software.Findings of Social Islami Bank LtdThe Social Islami Bank Ltd. has been trying to operate its business successfully in Bangladesh since 1995. Social Islami Bank Ltd. has already developed an image and goodwill among its clients by offering its excellent service. This success has resulted from the dedication, commitment and dynamic leadership of its management over the periods. During the short span of time of its operation the bank has successfully grabbed a position itself as a progressive and dynamic financial in the country. If the bank goes this way, it is expected that near future Social Islami Bank Ltd. become one of the giant in this banking sector.More findings about the Organization Social Islami Banks profit was growing over the years. Total assets growth trend was upward from the year 2008 to 2012. Shareholders equity was growing over the years. Earnings per share condition wasnt good which is declining. Revenue from import and export business are growing which is more than city bank. Top management gives its highest attention in the operation of fund management. Foreign exchange business condition was good. ROA and ROE showed the sound position, but comparatively condition was poor than city bank ltd. ROI was fluctuating, but comparatively its better than city bank ltd.Recommendation of Social Islami Bank LtdThe banks are actually service organizations. The main objectives of the world famous and successful banking organizations are to make profit through addressing the clients time to time with new pieces of financial instruments. Here Social Islami Bank try to operate their business with a different kind of financial innovation. After analysis of all gathered information and other relevant documents, SIBL should carefully consider following matters: As one of leading Banks in Bangladesh, SIBL should provide equal emphasis in each department of banking service. Social Islami Bank need to increase their ROA and ROE SIBL should more focus on their deposit collection. Assets utilization capacity should be improved. SIBL should promote debit card and credit card service. The proper managerial observation and cooperation are required in each department. SIBL should launch mobile banking service. SIBL need to ensure updated IT facilities in all branches. SIBL need to increase own ATM booth all over the country. SIBL should more concentrate on different kind of financial innovation. SIBL should implement internet banking service. Social Islami Bank need to enhance their financial innovation to grab the market more. SIBL can provide higher compensation to their employees. So it will motivate employees for better performance.Conclusion:Now a day banking organizations are one of most vital parts of an economy. Now banks provide various services for individual, different firms, companies even for cultivation and so on. As an organization, City Bank has earned the reputation of top banking operation in Bangladesh. The organization is much more structured compared to any other bank operating local or foreign in Bangladesh. With a bulk of qualified and experienced human resource, City Bank can exploit any opportunity in the banking sector. It is pioneer in introducing many new financial products like American Express Credit Card, Special bank Account and services in the banking sector of our country. On the other hand Social Islami Bank is running successfully and for its good deposit performance the bank occupies 2nd position in the Islamic Banking Sector. Above all, it can be safely said that SIBL action program is directed towards development of an authentic participatory Economy beyond Market Economy.In this project paper, I want to show the comparative scenario between two prominent banks in Bangladesh those are the city bank ltd. and Social Islami bank ltd. The financial statements are the main factors to compare the position of those banks that lead the title name of this project paper which is a comparative study of financial statement analysis between The City Bank Ltd. and Social Islami Bank Ltd.After all analysis, we can say that comparatively City banks performance was better than Social islami bank from the year 2008 to 2012. In export and import business Social islami banks performance was better than city bank. Overall both banks return on assets and return on equity condition was sound but need to improve more.Bibliography P.N. Varshney (2005), Banking Law and Practice. Sultan Chand & Sons Prokashni Islamabad: The Islamic Foundation, The International Association of Islamic Economics. Maududi, Syed Abul Ala (1979). Sud and Adhunic Banking. Adhunik Prokashani, Annual Report 2008-2012 Financial Statement Department, Bangladesh Bank. Annual Report 2008-2012 of the City Bank Ltd. Annual Reprt 2008-2012 of the Social Islami Bank Ltd.Manual: Bai-Murabaha Hire Purchase under Shirkatui Melk Bai-Salam Musharaka Bai-MuajjalWeb Site:www.thecitybank.comwww.siblbd.comwww.dseorg.bd

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Analysis Between Bank