As per partial fulfillment of the requirements for the BBA degree I have completed internship from "Prime Bank Limited". This is to confirm that the internship report "An Overview of Financial Performance of Prime Bank Limited" has been prepared as part of the completion of the BBA program of the Department of Business Administration, Sonargaon University (SU) conducted by Md Nafiz Omar Mollik , with ID: BBA1903018018 under my supervision. BBA1903018018 of Sonargaon University would like to solemnly declare here that this report on "Financial Performance Analysis of Prime Bank" has been prepared by me.
- Origin of the Report
- Objective
- Methodology… ............................................................................................... 4-5
- Limitations of the study…
The scope of the study is to have an idea about Financial Performance Analysis of PBL. The report begins with the outline of the organization in focus, which presents the mission and vision of organization. Lack of time: The researcher was in the bank for three months, so within this short period.
Commencement of Operation
It is a fully licensed regular commercial bank established in the private sector in accordance with the government's policy of liberalization of banking and financial services.
Motto, Vision, Mission, Focus of efforts, Objectives and Values of Prime
Prime Bank Limited's objectives are specific and focused on its vision and to position itself in the mindset of the people as a bank with a difference. Developing the standard of living of the limited income group through the provision of consumer credit. International Star for Leadership in Quality (ISLQ) Award” in the Gold category based on ISLQ regulations and criteria of B.I.D.’s QC100 Total Quality Management Model. Business Initiative Directions) at the International Quality Convention held in Paris on April 11, 2011.
Corporate Philosophy… ............................................................................ 10-11
In 2011 PBL received 4 top rated awards for its published accounts and reports and corporate governance viz. Best Published Accounts and Reports Award” by ICAB (Institute of Chartered Accountants of Bangladesh) for Annual Report 2010. Continue to strive for sound growth by doing the business we do well, expanding into underserved areas, entering new sectors and exploring innovative ideas.
Ethics, Integrity and Trust…
Board of Directors ..................................................................................... 13-14
They help the bank to comply with the rules and regulations introduced by the Bangladesh Bank. They inform the Bangladesh Bank about the current status of the rules and regulations followed by the bank. Asset Marketing: Asset marketing refers to the marketing of various types of loans and advances. in order to do this work, they often visit large organizations and then attract a loan from a bank to finance profitable ventures.
In this case, various organizations having excess funds are requested to deposit their excess funds into the bank. The bank has a large amount of investments in shares and securities in various companies as well as government treasury bills and securities. The marketing team of this division goes to the potential customers to sell the card.
The bank will focus on its large customer base to generate more revenue from existing customers. The Bank will continue to exploit the potential of the retail, credit card, SME and remittance markets. In its pursuit of growth, the Bank will always adhere to good corporate governance and good practices, a sound risk management policy and a strict credit assessment process.
We see ourselves as a strong and effective player in the financial system and will remain ready to implement the same.
Prime Bank LTD at a glance
At this moment, Prime Bank Limited is one of the leading online banks of Bangladesh. Prime Bank Limited's debt ratio varies as it increased from 9.63 to 10.20 in 2017 to 2019, indicating that a large percentage of the company's financing asset is from debt. So, we can say that the operating efficiency of the Prime Bank Limited is good.
This shows that Prime Bank Limited is using its assets more efficiently to generate operating income. But Prime Bank Limited has managed to increase their EPS as we can see in the bar chart. Cash to asset ratio is the current value of marketable securities and cash in prime bank up and down trend.
Prime Bank Limited's total asset turnover has had an increasing trend which means they have been using their assets efficiently to generate income. Prime Bank Limited sets new standards in the banking area in the time of turbulent economic conditions. Over the years, Prime Bank Limited has taken a well-established position through its range of activities.
It can be said that Prime Bank Limited is growing rapidly and its contribution to our economy is also considerable.
Customer Services provided by PBL with the online facility
Cash and Non-Cash Services.................................................................... 22-23
Prime Bank offers you the ultimate in confidence, security and convenience in a current account in Taka that is freely depositable and withdrawable. Prime Bank offers SMS Banking services to guarantee instant access to your account details at any time. Any mobile phone user who has an account with Prime Bank can get the service through the mobile phone upon registration.
Its increase from 2017 to 2019 shows that the total reserves of cash and securities next to prime bank cash occupy a good position. As we can see that the current ratio of Prime Bank Limited has an increasing trend, it may soon have a current ratio of 2, which means that the company may not have enough current assets to meet its short-term liabilities . As all the values of Prime Bank Limited have, over the years, been up and down, it shows that the company is not productively using the investment of the capital investors to realize additional profits and return the profits to the investors at an attractive level.
The primary bank one of the leading banks in our country that also plays a crucial role in games. From the trend analysis, Prime Bank Limited's equity ratio, asset turnover, P/E ratio earning capacity and interest ratio are increasing year by year and this indicates a satisfactory position, but its leverage ratio shows the reduction of the financial risk. I hope that Prime Bank Limited will expand its services by expanding its products and branches across the country.
I sincerely hope that with the gradual and successful globalization of Islamic banking, coupled with people's growing awareness of its financial and social benefits, it becomes clear that this decade will be the decade of Prime Bank Limited.
SMS Banking
Export Finance Unit (EFO)
Islamic Banking
Part- 1)
Financial Ratios ......................................................................................... 30-32
The debt ratio is calculated to measure the amount of financial leverage, which is defined as the total assets provided by the company's creditors. It is often used by companies to measure the company's success in terms of profit from sales. The price or earnings (P/E) ratio is often used to evaluate the investor evaluation of stock value.
The cash ratio is a measure of liquidity that shows a company's ability to cover its short-term obligations using only cash and cash equivalents. The cash ratio is derived by adding a company's total reserves of cash and near-cash securities and dividing that amount by its total current liabilities. The cash asset ratio is the current value of marketable securities and cash divided by the company's current liabilities.
The loan-to-asset ratio is a financial ratio commonly used for banks (or credit unions) to measure the ratio of the bank's loan portfolio to total assets. The loan-to-deposit ratio (LDR) is used to assess a bank's liquidity by comparing a bank's total loans to its total deposits for the same period. If the ratio is too high, it means that the bank may not have enough liquidity to cover any unforeseen funding needs.
Conversely, if the ratio is too low, the bank may not earn as much as it could.
Trend Analysis
Common size or vertical analysis is a method of evaluating monetary statistics by expressing each item in an economic announcement as a proportion of a base amount for the same time period. A profit statement shows that the company's revenue means the amount of cash it earned by promoting its goods and services, and its prices mean the amount of cash it spent to earn its revenue.
Part- 2 )
Recommendations
As we have already seen that a large percentage of the company's financing asset is from debt. Prime Bank Limited's operating profit margin is already trending upward to continue this process, they should increase sales to achieve cost efficiency by reducing economies of scale and production costs, while at the same time bringing in extra revenue. The return on asset has a random tendency which is not good for increasing income, reducing expenses and reducing asset cost.
Return on equity ratio is following a downward trend which is not good, management should work hard to increase return on equity by increasing profit margins, using more financial leverage, improving asset turnover and distributing idle money etc. As a major aspect of the administration's change and modernization plan related to long-term money, the bank was transformed into an open organization with restrictions. A bank is a budget middle person that collects money as a depository from inert segment for example family unit by giving enthusiasm against shop and prepares this money in a useful area for example industry, horticulture, producing by collecting enthusiasm against advance.
Prime bank collects deposits by offering various types of attractive deposit products and provides loans by offering various types of investment products. Its number of customers, deposit amount and investment money is increasing day by day. To face the competition, the bank should consider to see new services and take different types of marketing strategies to get more customers in this competitive banking market.
