Financial Performance Analysis of Shahjalal Islami Bank Limited', which was prepared as part of the requirements of the BBA program of the Business School. I have successfully completed the internship program in Shahjalal islami bank limited at Elephant road branch and worked as an intern for three months in general banking, clearing and accounts. I hereby confirm that Mahjaben Tasnim is a BBA student, ID no. successfully completed her "Internship Program" titled "Financial Performance Analysis of Shahjalal Islami Bank Limited" in partial fulfillment of her BBA.
This is Mahjaben Tasnim, ID hereby declare that the Internship Program Report titled "Financial Performance Analysis of Shahjalal Islami Bank Limited" has been uniquely prepared by me after completing three months of work at shahjalal Islami bank limited (SJIBL), Elephant Road Branch. This report is made on the basis of "Financial Performance Analysis of Shahjalal Islami Bank Limited". This is the outcome of a three-month-based internship program in Shahjalal Islami Bank Limited as required by the faculty and supervisor Nusrat Farzana, Associate Professor of BBA Department, United International University.
This article aims to provide a better analytical framework to present the various aspects of Shahjalal Islami Bank Limited's performance in Bangladesh. Shahjalal Islami Bank Limited (SJIBL) is currently the most promising bank in the private sector. As a mandatory requirement of the BBA program, I did a three-month internship at Shahjalal Islami Bank Ltd.
This report, "Financial Performance of Shahjalal Islami Bank Limited", has been prepared to fulfill the partial requirement of BBA program as a means of internship program.
Origin of the report
Objective of the report
Primary objective
Specific objective of the report
Rationale of the Report
Scope of the report
Methodology of the report
Data Analysis tools
Trend analysis: It gives an idea that what has happened in the past. The dealer though that could understand what will happen in the future
Comparative analysis: Comparative analysis is a statistical method whereby two or more banks data can be compared and determined their consistency to one another
Data type
Limitations of the Report
Overview of the organization
- About the Shahjalal Islami Bank Ltd
- Nature of business of SJIBL
- Mission of SJIBL
- Strategies
- Motto/Slogan
- Corporate Information
- Organization Structure
- Shariah Assembly
- Service and Products
- General Banking
- Account service
- SWOT Analysis of SJIBL
To be a unique modern Islamic Bank in Bangladesh and to contribute significantly to the national economy and increase customer trust and wealth, quality investments, employee value and rapid equity growth. It will become the most prudent, focused on equitable growth based on diversified use of resources, yet remain a healthy and profitable bank.” Shahjalal Islami Bank Limited aims to become one of the leading banks in Bangladesh with prudence, sense and quality of operations in its banking sector. Legal Form A public limited company incorporated in Bangladesh on 1 April 2001 under the Companies Act 1994 and listed on the Dhaka Stock Exchange Limited and the Chittagong Stock Exchange Limited.
The SJIBL plays an important role in guiding and supervising the implementation of Islamic Sharia principles in all activities. The Sharia Council of the SJIBL consists of prominent Ulema, Bankers and Economists to advise and guide on the implementation of Islamic Sharia in banking activities. Members of the Shariah Board enjoy a special status in the structure of the Bank and play an important role in making the bank Shariah compliant.
According to Article 30 of the Statute of the Bank Association, the Shariah Council for the Bank has been established. I worked in the General Department of the Bank and performed the main functions of a bank. It follows the concept of Mudaraba customers who open this account for a certain period of time and receive profits.
This account is also known as term deposits or time liabilities means that these are subject to withdrawal for a period of time and not on demand. Al-Wadiah means that the bank is obliged to collect money from its customers so that they can return on demand and with permission to use the money at their own risk. Banks can take profit or loss on the money, but the customer cannot claim any profit nor share any loss.
It is opened by the middle group of people who want to save money for the future and also want to earn money with it. This account yields more profit than other savings accounts and it is beneficial for businesses and account holders who need to keep their money for at least six months before they can make use of the money.
SWOT SWOT
S Strength
W Weakness
SWOT ANALYSIS
OpportunitiesO
Opportunities
T Threats
Chapter Three
Analysis
Financial Performance Analysis of Shahjalal Islami Bank Limited
Financial Performance Analysis
Diagram of financial ratios
Ratio analysis for SJIBL
- Efficiency and profitability ratios
- Return On Asset
- Return on equity
- Return on investment capital
- Expense control efficiency
- Operating profit margin
- Equity multiplier
- Liquidity ratio
- Liquid securities indicator
- Earning assets to total assets ratios
- Current deposits to total liabilities
- Cash position indicator
- Debt ratios or leverage ratio .1 Debt to asset ratios
- Debt to equity ratios
- Equity to asset ratio
- Market performance ratio analysis
- Price-to-Earnings ratio
ROA is represented as a percentage that gives a manager, investor or analyst an idea of how efficient a bank is at using its assets to generate revenue. A higher ROA ratio is better because it indicates that the bank is making more money with less investment. ROA ratios give investors an idea of how effective the bank is at using its assets to generate income.
A low percentage return on assets indicates that the bank is not generating sufficient income from the use of its assets. Return on equity is the most important efficiency-profitability ratio and this ratio measures the profit from the shareholders' investment in the bank. This ratio gives an impression of how well a bank uses its capital to generate returns.
This graph shows that the bank's return on investment capital has varied over the years. It indicates how well the bank's operations contribute to its profitability and also manage its indirect costs. If the bank relies only on debt financing, it will need to raise more cash flow to pay their obligations.
Higher equity multiplier means the bank is more dependent on debt to finance its assets. Higher multiplier ratios are risky for the bank because it indicates that more assets were financed with debt to pay the banks operations. Shares and marketable securities are the favorable liquid assets that can be converted into cash in a relatively short time when the bank is in a financial crisis.
In 2016 and 2017, the ratio of earning assets to total assets of SJIBL was reduced by 0.02 both years and SJIBL performed less efficiently under the 5 years. If the ratio is too high, it means that the bank may not have enough liquidity to cover any contingencies. Conversely, if the ratio is too low, the bank may not be earning as much as it could be.
This graph shows that the ratio of operating deposits to total liabilities of SJIBL increased from 2013 to 2017. Under the last 5 years in 2017, the ratio of operating deposits to total liabilities increased to 1.36 and this indicates the highest efficiency of SJIBL.
Chapter Four
Findings and recommendations
- Major Findings
- Recommendations
Although SJIBL's return on assets shows a fluctuating situation so that it should acquire more profitability, which could increase its net income to total assets by increasing investment income and reducing operating expenses. For better efficiency, SJIBL can increase its investment income by increasing profits on Murabaha, Ijara and Investment against Letter of Credit etc. Thus, SJIBL can increase its net income by improving investment income to achieve greater profitability.
Chapter Five
Conclusion
Appendix: Reference & Bibliography
For referencing of article
For referencing of websites
For referencing of book
