This is to authorize Towhidul Islam Chowdhury to conduct the research and prepare an internship report on “Financial Performance Analysis of The City Bank Limited”. With all due respect, I am a BBA student interning in the corporate finance department of City Bank Limited and have written a report on the “Financial Performance Analysis of The City Bank Limited.” It gives me great pleasure to present this report, which is the result of my struggle. This report is the result of the knowledge gained during the internship period.
Nahid Kawser Rahman Shov, Head of Corporate Finance, The City Bank Limited, for his constant supervision, guidance and providing me with the information I needed to complete the project. Company Overview: The second chapter is all about the overview of The City Bank Limited. One of the major weaknesses of CBL is the retention of talented people in the organization.
I took the data from 28 banks for each component and averaged each component and compared it to the Stadsbank components to see if CBL performed above or below the industry average. The topic of my internship report is “Financial Performance Analysis of The City Bank Limited”.
Objective of the Report
Each participant must complete a three-month internship program in an organization to gain real-world experience in business operations in order to complete the BBA program. I have been given a three-month internship program in the Business Finance department of City Bank Ltd, Head Office to help me fulfill the aforementioned requirement. A practical experience report is required for the BBA program after 120 credits have been completed.
Students pursuing a Bachelor of Business Administration (BBA) degree must participate in an internship program that places them in a challenging area of a crucial field. During the training for entry-level positions, students are given the opportunity to delve deeper into the special circumstances of the organization. Here we have the opportunity to use and compare the theoretical knowledge we have learned in class and from our textbooks in practical contexts.
Scope & Limitation of the Report
Methodology of the Report
List of Abbreviations & Technical Terms
My office was located at 136 Gulshan Avenue where The City Bank Ltd is headquartered. Basically, this is done to compare the performance of every other bank with the performance of City Bank in certain components. Then my supervisor told me to see how City Bank stands among all the banks.
For this I had to calculate all the components of the 10 banks and compare with City Bank. Calculation of City Bank's JAW ratio - This task was also assigned by my supervisor. I learned that City Bank had a massive growth in all areas of deposits in 2022.
But City Bank made a big comeback in the year 2021 and managed to overcome the situation. All the increasing growth pattern indicated that City Bank is using its deposits very effectively by investing in the government and other platforms. Therefore, we can say that the Profit After Tax of City Bank is improving in the last few years.
In the graph above, we can see that City Bank's RWA is on an upward trend, although it has slightly decreased in 2019. City Bank has maintained its SLR above the benchmark set by Bangladesh Bank throughout the years. As a result, we can say that City Bank complies with all BB regulations and guidelines.
So we can say that City Bank has done convincingly well in maintaining CRR. As all these components scored above the industry average, it can be said that City Bank performed well in these segments. Since City Bank performed below the industry average, it should definitely improve the relevant areas.
Therefore, we can conclude that City Bank does not perform well in the balance sheet components. My suggestion to City Bank in the future would be to distribute loans and advances more carefully after reviewing each person's case. City Bank has a problem on the asset side such as loans and advances, total cash, investments, public investment as they were below the industry average.
So, I would recommend City Bank to monitor the cost and try to control it in the coming years.
Company Overview ……………………………………………………………………………… 6-12
Overview of The City Bank Limited
City Bank offers a wide range of banking services to individuals and businesses through its branches, online interactions and mobile applications. City Bank is one of the largest private sector commercial banks in Bangladesh, with total assets of BDT 416,902 million at the end of 2021. Services offered by City Bank include Retail Banking (Cards, Digital, Preferential, Employee Banking), wholesale, corporate banking, SME banking, City Alo banking - women and treasury, employee banking, agent banking, etc.
City Bank also has an Islamic wing called City Islamic which has been doing great business lately. With a solid financial footing, City Bank managed to increase its year-on-year profit growth to 4.7% despite the significant twin effects of the 9% regulatory cap on industrial loans and the coronavirus pandemic. The important role of the bank as a financial intermediary is reflected in the 67% share of customer deposits in all assets.
The bank's average loan-to-deposit ratio over the previous five years was over 81%, indicating that loan growth kept pace with deposit growth.
Mission, Vision & Core Values
SWOT Analysis
Porter’s Five Forces Model
To establish City Bank's global presence in one of the world's leading financial centers, Hong Kong, City HK was established. Next, my supervisor wanted to know why City Bank's CRAR is less than the other 10 banks. City Bank's RWA was higher than other banks compared to Tier 1 and Tier 2 capital.
Although the growth is not that satisfactory, we can say that City Bank is performing moderately in this area. This indicates that City Bank has maintained a constant debt-to-equity ratio over the past five years. The city bank must take corrective measures to control the non-performing or classified loans.
According to this, City Bank is turning its equity financing into profit much more efficiently now than it was previously. I have compared the industry average with data from City Bank and tried to find out if City Bank performed above the industry average or below the industry average. Net interest income, total operating income, net profit after tax were above the industry average, which is a very good sign for the bank, whereas total operating expenses were above the industry average, which was detrimental to City Bank.
So we can say that the year 2020 was neither very satisfying nor bad for City Bank. City Bank's net operating cash flow per share, net asset value per share, interest income, commission, foreign exchange and brokerage income were well above the industry average, indicating City Bank's strong performance in 2019. Therefore, the City Bank develop concepts or initiatives. to reduce the volume of non-performing loans.
