1.Welcome to Our Presentation

2. To analyze performance of DHAKA BANKLIMITED (DBL) by calculating different financialratios, we use following ratios-1234567891011 3. Year2008 2009 2010Current49,301,679,829 64,392,429,203 94,299,543,101assetsCurrent42,231,399,329 56,393,251,111 78,312,111,310LiabilityCurrent Ratio1.16 1.14 1.20 4. 1.301.251.201.15 1.161.20 Current Ratio 1.141.101.05 2008 20092010By this ratio we see that in 2009 DBLs Current Ratio is relatively lower than others. But in 2010 its increasing & also continuousincreasing is going on. 5. Year2008 2009 2010Cash+ Short-terminvestments 30,201,379,222 40,321,394,323 60,329,361,429+Receivables(net) Current 42,231,399,329 56,393,251,111 78,312,111,310LiabilitiesAcid-Test Ratio 0.71 0.71 0.77 6. 1.10 1.00 0.90Acid-Test Ratio 0.80 0.71 0.71 0.77 0.70 0.602008 2009 2010DBLs Acid-Test Ratio in 2008 and 2009 is (0.71) same.But its overcome in 2010 (0.77). DBL is done well in 2010 7. ROE= (Net Income Total Equity) 100 Year200820092010Net Income 675,635,197 769,325,226 1,548,291,201Total Equity 4,973,256,235 5,235,881,809 8,321,021,252 ROE13.58%14.69%18.60% 8. 30.00 25.00 20.00 18.60% ROE (Return on Equity) 15.0014.69% 10.00 13.58% 5.0020082009 2010By this ratio we see that in 2008 & 2009 DBLs ROE isrelatively lower. But in 2010 its increasing & also continuousincreasing is going on. Therefore, investors will attract moreeffectively to invest. 9. ROA= (Net Income Total Assets) 100 Year2008 2009 2010Net675,635,197769,325,226 1,548,291,201Income Total 49,301,679,829 64,392,429,203 94,299,543,101 Asset ROA 1.37%1.19%1.64% 10. 5.00%4.00%3.00% ROA (Return on Asset)2.00%1.37% 1.19% 1.64%1.00%0.00%200820092010Here, we see that DBL Managing their asset in averageat 1.4%. And also in 2010, ROA is much better thanothers. 11. Profit Margin= (Net Income Operating Revenue) 100Year200520062007Net Income675,635,197 769,325,226 1,548,291,201 Operating3,351,543,728 2,921,231,542 4,769,198,333revenueProfit Margin20.15%26.33%32.46% 12. 50.00%40.00% 32.46%30.00% 26.33% Profit Margin20.00%20.15%10.00%0.00%200820092010DBLs profit margin ratio in 2008 is 20.15% and 2009 is26.33.but it is very low. Its overcome in 2010. So, DBL isdoing well in 2010. 13. Net Interest Margin= (Total Interest Income Total Interest Expense) Average Earning Asset Year20082009 2010 Total Interest5,113,314,1456,386,259,1907,453,129,133Income Total Interest3,429,390,6524,129,723,5315,592,813,339 ExpenseAverage23,953,225,89232,813,317,501 36,929,413,402Earning Asset Net Interest0.050 0.0680.070 Margin 14. 0.10% 0.090% 0.080% Net Interest Margin 0.070% 0.0680.070 0.060% 0.050 0.050%200820092010DBLs net interest margin standing in 2010 is0.070, which is much better from previousyears. 15. EPS= Net Income No. of Shares Issue Year 20082009 2010Net Income 675,635,197 769,325,226 1,548,291,201 No. of 13,698,23514,963,329 20,935,329Shares IssueEPS 49.32 51.4173.95 16. 90.00% 80.00%73.95 70.00%EPS (Earning Per Share) 60.00%51.41 50.00%49.32 40.00%200820092010In 2008 and 2009 it is too much lower. In 2010 DBLmake over the problem for EPS is increasing 17. DPS= Proposed Dividend No. of Shares Issue Year 200820092010Proposed 370,943,342 410,293,312 551,293,392Dividend No. of Shares 13,698,23514,963,32920,935,329 Issue DPS27.07 27.41 20.46 18. 35.00%30.00% 27.07 27.4125.00% 20.46 DPS (Dividend Per Share)20.00%15.00%10.00%2008 20092010DPS of DBL 2008 & 2009 is good but in 2010 itis much lower. 19. P/E Ratio = Market Price of per Share AnnualEarnings per share (EPS)Year2008 20092010 Market Price of 1050.10 950.50 1532.10 per ShareAnnualEarnings per49.3251.41 73.95Share (EPS)P/E (Price21.2918.48 20.71Earning) Ratio 20. 35.00% 30.00% 25.00% 21.29 20.71P/E (Price Earning) Ratio 20.00%18.48 15.00% 10.00%2008 2009 2010EPS of DBL 2008 is good but in 2009 and 2010 it is too much lower.Somehow external factors are not work properly for that P/E ratiodecreasing. 21. Year2008 2009 2010 Total debt 2,424,132,1024,239,731,0322,248,732,102Total asset 49,301,679,829 64,392,429,203 94,299,543,101Debt to total 0.04 0.060.02assets ratio 22. 0.10 0.08 0.06 0.040.06Debt to total assets ratio 0.040.02 0.02 0.00 2008 2009 2010Debts to total asset ratio is doing better when its decreasing. Herewe see that in 2008 and 2009 this rate is increase and in 2010 itsrate become lower. So, DBL is standing in a low risk position. 23. Year200820092010Income before 1,821,321,922 2,832,392,652 5,632,135,112 income taxesInterest expense 3,429,390,652 4,129,723,531 5,592,813,339 Time interest 1.531.692.00earned 24. 3.50 3.00 2.50 2.00Times Interest Earned 2.00 1.531.69 1.50 1.00 2008 2009 2010DBLs Times interest earned standing in 2010 is 2.00,which is better from previous years 25. DBL is continually improving its current ratio. It increases at a increasingrate during last few years. Acid test ratio of DBL is not so good in the last few years as It is lessthan 1 can not pay their current liabilities and should be looked at withextreme care. DBLs ROE well day-by-day in managing ROA. Which is a good trend. Profit margin rising day by day. Which is good for making future pricepolicy. shows an increasing trend over the last few years. Which is good. DBL is doing DPS indicates that the rate of growth of DBLs earnings are growing. DBL is improving in p/e ratio. this would lead most investors to invest inthe company. DBL has low debts to total asset ratio. Which is a good side. Times interest earned is good and increasing day by day. 26. The evaluating of bank performance is a complex processinvolving interactions between the environment, internaloperations, and external activities. The primary method ofevaluating internal performance is by analyzing accountingstatements. Financial ratios of accounting items permit anhistorical sketch of bank returns and risks.At DHAKA BANK LIMITED, they believe that, in order to supportthe success of their business customers, they need to take thetime to understand their unique challenges. 27. Current ratio below 1 shows critical liquidity on the other hand A current ratio higherthan 2.5 might indicate existence of idle or underutilized resources in the company.So, EBL should try to improve its current ratio carefully. Quick ratio of DBL less than 1.00. So ,DBL should give more concentration in theirexisting operation. DBL should work more to improve its ROE, so that, shareholders attract more to thecompany. An increasing trend of ROA indicates that the profitability of the company isimproving. So, it is necessary to initiate a new project to increase ROA. DBL should improve their pricing strategy. So that they can defeat their competitorsin pricing war. DBLs EPS is growing but which is not as much as 2008. possible action should needto take to recover this condition. Higher P/E ratio attract more investors. So,DBL should look forward to that side. Debts to total asset ratio is low,but it will go high if the company dont utilize theasset properly. If times interest earned ratio less than 1.0, then the firm cannot meet its totalinterest expense on its debt. So DBL should work carefully.