It is with great pleasure that I have just handed in my internship report on "Financial Performance of AB Bank Limited". The report has been prepared on the basis of the theoretical learning from the internship at AB Bank Limited. I am Shamima Akter, student of Bachelor of Business Administration, ID: BBA1702011013 from Sonargaon University would like to solemnly declare here that this internship topic on performance analysis of AB Bank has been authentically prepared by me.
She has successfully completed her internship program at AB Bank Limited and has prepared this internship under my direct supervision. This report on “Financial Performance Analysis of AB Bank Limited” was submitted to Farjana Yeasmin Chowdhury on March 15, 2021. During this time, I have used this observation and gained experience on various banking functions and day-to-day operations related to the “Financial Performance Analysis of AB Bank Limited”.
AB Bank Limited, the first private sector bank under a joint venture with Dubai Bank Limited. During the past 26 years, AB Bank Limited has opened 70 branches in various business centers of the country, one foreign branch in Mumbai, India, two representative offices in London and Yangon, Myanmar respectively, and also established a wholly owned subsidiary in Hong Kong. Kong in the name of AB International Finance Limited. This report gives the organization the idea of AB Bank, the objective of AB Bank, the strategy.
The project part includes the foreign trade division of AB Bank Limited; AB Bank's vision is to be the trendsetter for innovative banking with excellence and perfection, which delights the customer and an environment in which people excel.
Background of the Report
Significance of the Report
Scope of the Report
Objectives of the Report
Methodology of the report
Research Design
Sampling Plan: Population
Types of data
Sources of data
Secondary Data Sources
Limitations of the Study
Chapter two
Profile of AB Bank Limited
2.1 : Background of AB Bank Limited
Mission, Vision and Goal: Mission
Vision
Goal of ABBL
Strengths of AB Bank Ltd
Being the first bank in the private sector, AB Bank is always one step ahead of other competitors in meeting customer needs. In its goal, the bank mentioned that customer expectations will be met with innovative financial products and services.
Offerings of the Bank
2.6 : First of Many Firsts
- Islamic Banking Products
- Al-Wadena
- Al-Mudarabah
- Investment Services
- SWOT analysis of AB Bank Limited
The Islamic banking wing of AB Bank provides investment facilities for project finance, working capital finance, SME finance, consumer/retail product finance etc. AB Bank is one of the largest and oldest private sector commercial banks in Bangladesh. They have a great opportunity to become a leading banking institution and play a vital role in the development of the country even though they have 150 branches.
The bank does not have any formal promotional activity, does not give any kind of advertisement or has any marketing activity. The remuneration of AB Bank officials is lower compared to other private banks.
Chapter three
Theoretical Background
Theory of Ratio
- Credit Risk Ratio: The ratio refers the probability of credited money to return. If the respected loan amount does not make interest it has the most probability to be default
Most of the financial institution depend on it just to make their investment in productive sector. With these tools, people nowadays can make decisions about their short-term and long-term financing. Most of the company used to be able to meet the liability amount to the creditor.
Most of the firm took a large amount of credit from the respected lender to expand its manufacturing activity. So, in that case, a company should maintain liquidity ratio to be aware of its obligation to creditors. The higher the ratio by others, it measures the income they have made using 100% assets.
Common Size Analysis
Trend Analysis
Chapter Four
Performance Analysis
Performance of ABBL Bank Limited
Cash link Bangladesh Limited (CBL)
Performance Highlights
In 2020, Bank was only able to maintain profit after tax of BDT 12.33 core and BDT 16.77 core on consolidated and solo basis respectively.
Asset Quality
Capital Position
Cash Flow Position
Performance of the Bank - analysis
Chart Title
Accounting Policies and Estimation for Preparation of Financial Statements
The consolidated and separate financial statements of the Bank have been prepared for the year ended 31 December 2020 in accordance with the measurement and recognition requirements of International Accounting Standards (IAS) and International Financial Reporting Standards (IFRS), which replaced Bangladeshi Accounting Standards ( BAS) and Bangladesh Financial Reporting Standards (BFRS) in circular no. 1/1/ICAB-2017 of the Institute of Chartered Accountants of Bangladesh, the accounting standard setting body for Bangladesh, dated December 14, 2018 for the period beginning on or after January 1, 2019. The financial statements include the entire set of financial statements, which include consolidated and separate balance sheets, profit and loss statements, cash flow statements, statements of changes in equity capital, liability statements and relevant explanations and disclosures.
The financial statements have been prepared according to the historical cost convention, except for investments categorized under own securities in accordance with the Bank Company Act, 1991 (amendment up to 2019); BRPD circular no.
Discussion & Analysis
Changes in Accounting Policies and Estimation
Chapter Five
Recommendation & Conclusion
Recommendations
Ongoing customer service training is required to improve greeting skills, which reflects in the level of courtesy with which the officer interacts with customers. Reinforce the culture of answering questions as exhaustively as possible rather than just giving a basic answer that covers the essentials. This represents the professionalism of the service staff, especially in relation to the services provided by the bank and highlights the skills, efficiency and knowledge of the service staff.
Reinforce the need for staff to initiate contact with customers and acknowledge their presence, even if it is through body language, if not verbally. Remind staff of the requirement to wear a name badge in the workplace that is visible to customers. This is insufficiently practiced in some branches as mentioned earlier, but it is part of customer service standards.
The service personnel should complete his/her service by expressing thanks/welcome, invite the customer to return and keep a smiling face all the time to make a good impression. Signage instructions should be visible in different places or sections as appropriate so that they are easily visible to customers.
Conclusion
