Department of Finance & Banking, JU Bank Financial Management

An Overview ofThe Income Statement and Balance Sheet of

Bank Asia Limited and AB Bank Limited

Department of Finance & Banking, JU Bank Financial Management

Group Profile Our Group

Name Student i.d.Zinat Ferdous 1249Nazia Ahmed 1254Md. Abdul Ali 1279Md. Rasel Hossain 1266Wais Hasan 1295

Department of Finance & Banking, JU Bank Financial Management

Reporting Requirements of Financial Statements

Reporting Requirements in Bangladesh• “First Schedule (Section 38) of the Banking Companies Act

1991” as amended by BRPD circular no. 14 Solo basis and consolidated basis Previous year’s data shown alongside present year’s

Department of Finance & Banking, JU Bank Financial Management

Standard format of Balance Sheet Balance Sheet -1

• Two main segments<Name of the Bank>

Balance SheetAt 31 December <Curr. Year>

 

Notes

Amount in TakaAt

31 Dec <Curr. Year>At

31 Dec <Prev. Year>      PROPERTY AND ASSETS             Cash   00.00 00.00In hand (including foreign currencies)   00.00 00.00Balance with Bangladesh Bank and it's agent bank(including foreign currencies)

  00.00 00.00

       Balance with other banks and financial institutions   00.00 00.00In Bangladesh   00.00 00.00Outside Bangladesh   00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Standard format of Balance Sheet Balance Sheet -2

Money at call and short notice   00.00 00.00      Investments   00.00 00.00Government   00.00 00.00Others   00.00 00.00       Loan and advancements   00.00 00.00Loans, cash credits, overdrafts   00.00 00.00Bills purchased and discounted   00.00 00.00       Fixed assets   00.00 00.00Other assets   00.00 00.00Non-banking assets   00.00 00.00Total Assets   00.00 00.00       

Department of Finance & Banking, JU Bank Financial Management

Standard format of Balance Sheet Balance Sheet -3

LIABILITIES AND CAPITAL             Liabilities            Borrowings from other banks, financial institutions and agents 00.00 00.00       Deposits and other accounts   00.00 00.00Current/ Al-wadeah current accounts and other accounts   00.00 00.00Bills payable   00.00 00.00Savings bank/ Mudaraba savings bank deposits   00.00 00.00Fixed deposits/ Mudaraba fixed deposits   00.00 00.00Bearer certificates of deposit   00.00 00.00Other deposits   00.00 00.00       Other liabilities 00.00 00.00      Total liabilities 00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Standard format of Balance Sheet Balance Sheet -4

Capital/ shareholders' equity             Total shareholders' equity   00.00 00.00Paid-up capital   00.00 00.00Share premium   00.00 00.00Statutory reserve   00.00 00.00Revaluation reserve   00.00 00.00Exchange equalization reserve   00.00 00.00Other reserves   00.00 00.00Retained earnings   00.00 00.00       Total liabilities and Shareholders' equity 00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Standard format of Balance Sheet Off-balance Sheet Disclosure 

Notes

Amount in TakaAt

31 Dec <Curr. Year>At

31 Dec <Prev. Year>      OFF-BALANCE SHEET ITEMS             Contingent Liabilities   00.00 00.00Acceptances and endorsements   00.00 00.00Letters of guarantee   00.00 00.00Irrecoverable letters of credit   00.00 00.00Bills for collection   00.00 00.00Other contingent liabilities   00.00 00.00       Other commitments   00.00 00.00Documentary credits and short term trade-related transactions   00.00 00.00Forward assets purchased and forward deposits placed   00.00 00.00Undrawn formal standby facilities, credit lines and other commitments   00.00 00.00      Total   00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Standard format of Income Statement Profit and loss statement

• Eight segments<Name of the Bank>

Profit and Loss StatementFor the year ended 31 December <Curr. Year> 

 

Notes

Amount in TakaAt

31 Dec <Curr. Year>At

31 Dec <Prev. Year>      

OPERATING INCOME             

Interest income   00.00 00.00interest paid on deposits and borrowings

  (00.00) (00.00)

Net interest income 00.00 00.00

Investment income   00.00 00.00Commission, exchange and brokerage

  00.00 00.00

Other operating income   00.00 00.00    00.00 00.00Total operating income (A) 00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Standard format of Income Statement Profit and loss statement -2OPERATING EXPENSES             Salaries and allowances   00.00 00.00Rent, taxes, insurance, electricity, etc.   00.00 00.00Legal expenses   00.00 00.00Postage, stamp, telecommunication, etc.   00.00 00.00Stationary, printing, advertisements, etc.   00.00 00.00Chief executive/ Managing director's salary and fees   00.00 00.00Directors' fees   00.00 00.00Auditors' fees   00.00 00.00Depreciation and repairs of Bank's assets   00.00 00.00Other expenses   00.00 00.00Total operating expenses (B) 00.00 00.00 Profit before provision (C=A-B) 00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Standard format of Income Statement Profit and loss statement -3

General provision   00.00 00.00Specific provision   00.00 00.00Provision for off-balance sheet items   00.00 00.00Provision for diminution in value of investments   00.00 00.00Other provisions   00.00 00.00Total provision (D) 00.00 00.00       Profit before tax (C-D) 00.00 00.00Provision for taxation   00.00 00.00Current tax   00.00 00.00Deferred tax   00.00 00.00Net profit after tax 00.00 00.00 Appropriations Statutory reserve 00.00 00.00General reserve 00.00 00.00 00.00 00.00Retained surplus 00.00 00.00Earnings per share (EPS) 00.00 00.00

Department of Finance & Banking, JU Bank Financial Management

Balance Sheet Analysis Balance Sheet Analysis

• Average of three years data namely 2011-2013 as reference

Composition of Assets Capital Structure Composition of Liabilities

Department of Finance & Banking, JU Bank Financial Management

Balance Sheet Analysis Composition of Assets

5.53% 1.59%

0.16%

17.78%

66.39%

3.41% 5.25%

Bank Asia Ltd.5.67% 4.54

%1.00

%14.28%

63.73%

2.29%

8.49%AB Bank Ltd.

CashBalance with other banks and financial institutionsMoney at call and short noticeInvestmentsLoan and advancesFixed assetsOther assets

Department of Finance & Banking, JU Bank Financial Management

Balance Sheet Analysis Capital Structure

9.52%

90.48%

Bank Asia Ltd.

8.94%

91.06%

AB Bank Ltd

Total shareholders' equity Total liabilities

Department of Finance & Banking, JU Bank Financial Management

Balance Sheet Analysis Composition of Liabilities

1.40%3.22%

80.28%

8.26%Bank Asia Ltd.

4.47%

78.16%

8.43%

AB Bank Ltd.

Borowings from other banks, financial institutions and agentsSubordinateed non-convertible zero coupon bondsDeposits and other accountsOther liabilities

Department of Finance & Banking, JU Bank Financial Management

Income Statement Analysis Income Statement Analysis

• Average of three years data namely 2011-2013 as reference

Income generation Efficiency Measurement

Department of Finance & Banking, JU Bank Financial Management

Income Statement Analysis Revenue generation

73.65%

26.35%

Bank Asia Ltd.

65.43%

34.57%

AB Bank Ltd

Total interest income Total non-interest income

Department of Finance & Banking, JU Bank Financial Management

Income Statement Analysis Efficiency Measurement

𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝐸𝑓𝑓𝑖𝑐𝑖𝑒𝑛𝑐𝑦= 𝑇𝑜𝑡𝑎𝑙 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠

Bank Asia AB Bank0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

1.58%

2.24%

Department of Finance & Banking, JU Bank Financial Management

Income Statement Analysis Efficiency Measurement -2

𝑅𝑒𝑡𝑢𝑟𝑛 𝑜𝑛 𝑒𝑞𝑢𝑖𝑡𝑦= 𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑡𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦

Bank Asia AB Bank0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

12.00% 10.67%

7.90%

Department of Finance & Banking, JU Bank Financial Management

Thank You!