A Comparative Analysis of Performance Evaluation, Liquidity Gap Analysis and Other Issues of Dutch –Bangla Bank Ltd. and Premier Bank Ltd.

4902 Words Jun 11th, 2012 20 Pages
-------------------------------------------------

-------------------------------------------------
PROFITABILITY RATIO ANALYSIS: Najmun Nahar Srity
Return on Asset (ROA): ID.No.091-11-924

Figure: Return on Asset (ROA)
Interpretation:
ROA (Return on Asset): ROA is a indicator of managerial efficiency, it indicates how capable the management of bank has been converting the institution’s assets into net earnings. In this example, the DBBL earned in year 2010 is
…show more content…
The multiplier is a direct measure of the bank’s of financial leverage how many TK. Of assets must be supported by each TK. Of equity capital and how much of the bank’s resources therefore must rest on debt. Bank is , however, the larger the multiplier, the greater the bank’s potential for higher returns for it’s stockholders.

Earning Spread (ES):

FIG: ES
Interpretation:
ES (Earning Spread): The spread measures the effectiveness of the bank’s intermediation function in borrowing and lending money and also the intensity of competition in the bank’s market area. Grate competition tends to squeeze the difference between average assets yields and average liabilities costs. If other factor are held constant, the bank’s spread will decline as competition increases forcing management to try to find other ways to make up for an eroding earning spread. Net Operating Margin (NOM ): FIG: NOM Interpretation:
NOM (Net Operating Margin): Net Operating Margin is a measure of efficiency, indicates how well management and staff have been able to keep the growth of revenues ahead of rising costs. In this example, the DBBL NOM in 2010 is 3.71 and in 2009 is 2.63408767.
Open Document