Banking 201

Welcome to our Presentation About EXIM Bank Bangladesh Limited

Md. Mostafa Anwar 072-11-1808 Dewan MD. Jahangir Alam 072-11-1800 Md. Shahab Uddin 072-11-1829 Mrs. Labony Islam 071- 11 1545 MD. Samiul Islam 072-11-1811 Alauddin Ahmed Jahan

Introduction Bank: From the Italian banca meaning 'bench', the table at which a dealer in money worked. A bank is now a financial institution which offers savings and Cheque account, makes loans and provides other financial services, making profits mainly from the difference between interest paid on deposits and charged for loans, plus fees for accepting bills and other services.

Background of EXIM Bank EXIM Bank Limited was established in 3rd August1999 under the leadership of Late Mr. Shahjahan Kabir, founder chairman.

Mission & Vision Their vision and mission are stated in the following bullets: •To be the finest bank in the banking arena of Bangladesh under the Shariah guidelines. •To maintain Corporate and business ethics. •To become a trusted repository of customers' money and their financial advisor. •To display team spirit and professionalism. •To have a Sound Capital Base. •To provide excellent quality Customer service

Chapter-02

Profile of the Company

Name of the Company: EXIM Bank Limited. Type: Limited. Founded: 3rd August, 1999. Headquarter: Printers Building, 5, Rajuk Avenue (5, 6, 10 &13th floor), Motijheel C/A, Dhaka-1000, Bangladesh. Key People: Md. Nazrul Islam Mazumder. (Chairman). Nature of Business: To improve The Banking sector. Products: Investment / Finance, Deposit, Foreign Currency Deposit, Moradabad Savings Scheme etc. Capital: The authorized capital and paid up capital of the bank are Tk. 1000.00 million and Tk 313.87 million respectively. Revenue: 1,199,490,935 BD.TK. (2006) Net Income: 650,292,342 BD.TK. (2006) Website: www.eximbankbd.com.

Chapter-03 Key Profitability Ratios of Exim Bank Return on Equity Capital (ROE): It measures the net benefit that the stock holders have received from investing their capital in the company.

NetIncomeAfterTaxes Re turnonEquityCapital ( ROE ) = TotalEquityCapital

Return on Equity Capital (ROE) for the year 2001: NetIncomeAfterTaxes Re turnonEquityCapital ( ROE ) = TotalEquityCapital 158057633 = 407247808 = 0.38811

Return on Equity Capital (ROE) for the year 2002: Re turnonEquityCapital ( ROE ) =

NetIncomeAfterTaxes TotalEquityCapital

201422785 = 551331921 = 0.3653

Return on Equity Capital (ROE) for the year 2003: NetIncomeAfterTaxes TotalEquityCapital 254792156 = 748274077 = 0.3405

Re turnonEquityCapital ( ROE ) =

Return on Equity Capital (ROE) for the year 2004: Re turnonEquityCapital ( ROE ) =

NetIncomeAfterTaxes TotalEquityCapital

381798163 1400004740 = 0.2727 =

Return on Equity Capital (ROE) for the year 2005: Re turnonEquityCapital ( ROE ) =

NetIncomeAfterTaxes TotalEquityCapital

555335174 1912421914 = 0.2903 =

Return on Equity Capital (ROE) for the year 2006: Re turnonEquityCapital ( ROE ) =

NetIncomeAfterTaxes TotalEquityCapital

650292342 3111685079 = 0.2089 =

Interpretation: Company position is not well position because, year 2001 Return on equity capital 0.388%; 2002 ROE 0.3633%; 2003 ROE 0.340%; 2004 ROE 0.272%; 2005 ROE 0.290%; and 2006 ROE 0.208%; so year by year ROE is decrease. The company wants the best position so, must be increasing ROE.

Return on Assets (ROA): ROA provides an idea of the overall return on investment earned by the firm. It is primarily an indicator of managerial efficiency indicating how capably the management of a bank has been converting the bank’s assets into net earnings.

Re turnonAssets ( ROA) =

NetIncomeAfterTaxes TotalAssets

Return on Assets (ROA) for the year 2001: NetIncomeAfterTaxes Re turnonAssets ( ROA) = TotalAssets 158057633 8035327840 = 0.0196 =

Return on Assets (ROA) for the year 2002: Re turnonAssets ( ROA) =

NetIncomeAfterTaxes TotalAssets 201422785 11374702415 = 0.0177 =

Return on Assets (ROA) for the year 2003: Re turnonAssets ( ROA) =

NetIncomeAfterTaxes TotalAssets

254792156 17888657386 = 0.01424 =

Return on Assets (ROA) for the year 2004: NetIncomeAfterTaxes Re turnonAssets ( ROA) = TotalAssets 381798163 24355751451 = 0.0156 =

Return on Assets (ROA) for the year 2005: Re turnonAssets ( ROA) =

NetIncomeAfterTaxes TotalAssets

555333174 33716699328 = 0.0164 =

Return on Assets (ROA) for the year 2006: Re turnonAssets ( ROA) =

NetIncomeAfterTaxes TotalAssets

650292342 41793540962 = 0.0155 =

Interpretation: ROA means Return on Assets; we have analyzed last six years company annual report. ROA definition or meaning we say that company is not very well position and company is not very bad position. This position is middle position. Because 2001 ROA 0.0196 %; 2002 ROA 0.0177%; 2003 ROA 0.01424 %; 2004 ROA 0.0156%; 2005 ROA 0.0164 %; and 2006 ROA 0.0155 %; so we can say that company is the middle position. Every year company ROA is increased and decreased.

Net Interest Margin: NetInterestM arg in =

NetInterestIncome TotalAssets

Net Interest Margin for the year 2001: NetInterestM arg in =

NetInterestIncome TotalAssets

100012972 8035327840 = 0.0124 =

Net Interest Margin for the year 2002: NetInterestM arg in =

NetInterestIncome TotalAssets

203875587 11374702415 = 0.0179 =

Net Interest Margin for the year 2003: NetInterestM arg in =

NetInterestIncome TotalAssets

274772354 17888657386 = 0.0153 =

Net Interest Margin for the year 2004: NetInterestM arg in =

NetInterestIncome TotalAssets

394772275 24355751415 = 0.0162 =

Net Interest Margin for the year 2005: NetInterestIncome TotalAssets

NetInterestM arg in =

639544675 33716699328 = 0.0189 =

Net Interest Margin for the year 2006: NetInterestM arg in =

NetInterestIncome TotalAssets

854477947 41793540962 = 0.0204 =

Interpretation: The net interest margin measures how large a sprees between interest revenues and interest cost’s management has been able to achieve by close control over the banks earning assets and the pursuit of the chiefs sources of funding. We have analyzed last six years company annual report. We say that company Net interest margin is year by year increase .So it is well aspect for the company.

Net Non Interest Margin NetNonInterestM arg in =

NetNonInterestIncome TotalAssets

Net Non Interest Margin for the year 2001:

NetNonInterestM arg in =

NetNonInterestIncome TotalAssets

384313885 8035327840 = 0.0478 =

Net Non Interest Margin for the year 2002:

NetNonInterestM arg in =

NetNonInterestIncome TotalAssets

319534644 11374702415 = 0.0280 =

Net Non Interest Margin for the year 2003: NetNonInterestIncome TotalAssets

NetNonInterestM arg in =

565831380 17888657386 = 0.0316 =

Net Non Interest Margin for the year 2004: NetNonInterestM arg in =

NetNonInterestIncome TotalAssets

824304712 24353751451 = 0.0338 =

Net Non Interest Margin for the year 2005: NetNonInterestM arg in =

NetNonInterestIncome TotalAssets 972024542 33716699328 = 0.0288 =

Net Non Interest Margin for the year 2006: NetNonInterestM arg in =

NetNonInterestIncome TotalAssets

1159478403 41793540962 = 0.0277 =

Interpretation:

The ratio measures the amount or non-interest margin coming from deposit service charges and other service fees relative to the amount of non-interest costs incurred (such as salaries and wages, repair and maintenance costs on bank facilities, and loan-loss expenses). So company position is reasonably good.

Net Bank Operating Margin: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets

Net Bank operating Margin for the year 2001: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets

419547616 − 145693783 8035327840 = 0.03408 =

Net Bank operating Margin for the year 2002: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets

588189470 − 201392457 11374702415 = 0.034005 =

Net Bank operating Margin for the year 2003: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets

840603734 − 277941810 17888657386 = 0.03145 =

Net Bank operating Margin for the year 2004: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets

1219076987 − 383269574 24355751451 = 0.034316 =

Net Bank operating Margin for the year 2005: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets 1611569217 − 435806139 33716699328 = 0.03487 =

Net Bank operating Margin for the year 2006: NetBankOperatingM arg in =

TotalOperting Re venue − TotalOperating exp anses TotalAssets

2013956350 − 635283277 41793540962 = 0.032987 =

Interpretation:

Operating margin gives analyses an idea of how much a bank makes from each dollar of loans, before interest and taxes. We have analyzed last six years company annual report. We can say that company 2001 Net bank operating margin in 0.03408% 2002 Net bank operating margin in 0.03400%; 2003 Net bank operating margin in 0.03145%;2004 Net bank operating margin in 0.03431%; 2005 Net bank operating margin in 0.03487%; 2006 Net bank operating margin in 0.03298% . So 2005 is best.

Earnings per share Earningpershare( EPS ) =

Earnings per share 2001 62.44% Earnings per share 2002 79.14% Earnings per share 2003

81.18% Earnings per share 2004 60.82%

NetIncomeAfterTaxes CommonEquityshareunters tan ding

Earnings per share 2005 555335174 Earningpershare( EPS ) = 11425050 48.61%

Earnings per share 2006 650292342 Earningpershare( EPS ) = 14955028 43.4831%

Interpretation: EPS indicates the per share earnings after taxes that an investor is entities to get. We have analyzed last six years company annual report. We can say that company earnings per share year by year decreasing. So company is not good position.

Findings: Positive: owe can say that company ROA is well position oAmong six years company net interest margin is reasonably good. oBased on Islami Shariah. oNet Bank Operating margin is well.

Negative: oROE is not suitable for company. oEarnings per share are decreasing.

Conclusion: We would like to mention that so far Exim Bank Bangladesh Limited has developed lot of concerns of banking sector. Exim Bank Bangladesh Limited is an Islami Shariah based bank in Bangladesh. They know that all dreams became realistic due to their endless efforts and strong commitment. .

Thank You