Internship Report

On

Supervised By:
Ashiqun Nabi
Assistant Professor in Finance
Department of Business Administration
Manarat International University

Submitted By:
Nura Alam
ID: 1337BBA02620
BBA Program
Major in Finance &Banking
Manarat International University

Date Of Submission
5th August, 2017
I am Nura Alam. Student of BBA program in Manarat International University, hereby declare
that the internship report titled “Financial Performance Analysis of EXIM Bank Bangladesh Ltd”
is prepared after the completion of my internship at “Financial Performance Analysis of EXIM
Bank Bangladesh Ltd”.

I also declare that the internship report is prepared for academic purpose only. This report is not
submitted by others.

Nura Alam
ID No: 1337BBA02620
BBA Program
Major in Finance & Banking
Manarat International University
05, August, 2017
Ashiqun Nabi
Assistant Professor in Finance
Department of Business Administration
Manarat International University

Subject: Submission of Internship Report on “Financial Performance Analysis of EXIM Bank

Bangladesh Ltd”.

Dear Sir,
With best respect and honor, I would like to inform you that I have completed my internship
report on “Financial Performance Analysis of EXIM Bank Bangladesh Ltd”. It is an immense
pleasure for me to place the same before you.

I made every end to prepare this dissertation and tried my level best to accumulate relevant and
insightful information. It is a great experience for me to work on this topic. I have tried to make
the report viva and comprehensive within the scheduled time and limited resources.

I sincerely hope that this report will help you to evaluate me. I will be obliged to clarify any
matter or to provide any further information regarding this report.

Thanking you for your kind supervision.

Sincerely yours,

Nura Alam
ID No: 1337BBA02620
BBA Program
Major in Finance & Banking
First I want to pay my gratitude to almighty Allah for enabling me to prepare the report
successfully. Then I would like to express my sincere gratitude and cordial thanks to some
specific persons who helped me to organize this report and for their kind opinion, suggestions,
instructions and support and appropriate guidelines for this. First of all, I would like to thank
my Internship Supervisor AshiqunNabi Sir, Assistant Professor in Finance,Manarat
International University, in preparing the report on “Financial Performance Analysis of
EXIM Bank Bangladesh Ltd”. His valuable advice has helped me a lot in writing this report. I
am immensely thankful to his for the supports he has provided during my Internship period.

Next, I would also like to express heartfelt gratitude to my organizational supervisors at

EXIM Bank Limited, Mr. Mohammad Anowar Hossain – A.V.P & B-Relationship Manager,
Md. Amirul Islam- SPO & B-Operation Manager, Ms. Sanjida Sharmin- S.P.O Investment
Service Desk, Liton Kumer Saha – S.P.O In-charge General Banking, Md. Kawser Ahmed-
Officer General Banking, Mohammad Zanmiah- S.O Service Desk General Banking and Mr.
Ziaul Ahsan Chowdhury- Officer General Banking service Desk Shimrail Branch. They
directed me towards the right information and regularly reviewed my progress in preparation
of this report. They have provided the information about the organization and the information
about Branch as well to help me with the report. Finally, this report would not have been
possible without the dedication and contribution of all who have helped me by teaching all the
works. I express my sincere gratitude to all of them. Their valuable contribution is what made
this Report possible.

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In the new competitive business era, Islamic banking sector is getting more competitive in
Bangladesh. In this sector the most used financial statements are the balance sheet and profit
and loss account where the balance sheet shows the financial position and profit and loss
account shows the net profit or net loss of a bank. Financial Performance Analysis deals with
these statements. Financial Performance analysis is the most popular trend to evaluate a
company’s performance over years or with other companies in an industry.

In my report I had to study EXIM’s financial statements for the last few years then had to
analyze and give significant comments regarding the changes in the financial position.
Analysis and interpretation of these financial statements through financial performance
analysis has now become an important technique for performance appraisal because the
investors, financial experts, management executives are always rely on these measurement to
make important decisions. The management team of any company, investor and the
government agencies always concern about liquidity ratios and adequacy ratios of a company
which interprets the efficiency of a company. As a part of my B.B.A program, I have spent 3
months in EXIM Bank Shimrail Branch learning the activities of general Services of Islamic
Banking, Remittance and Investment. I have analyzed the financial statements of EXIM Bank
to find out its performance by using its past and current records. After preparing this report I
came to know that analysis of financial statements through ratios helps to overcome the past
flaws and make the future decisions and strategies.
Therefore, it is very necessary for every organization whether the company’s size is to make
financial statement and to analyze it by ratios.

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SL. NO. Particular Page NO.
Chapter 01, Introduction
01.01 Introduction 2
01.02 Background of The Study 2
01.03 Scope of The study 2
01.04 Methodology of the study 3
01.05 Objectives of the Study 3
01.06 Limitation of The Study 4

Chapter 02, Profile of EXIM Bank

02.01 Corporate History 6
02.02 Vision & Mission 7
02.03 Objective 7
02.04 Management Structure 8
02.05 Organizational Hierarchy 8
02.06 Corporate Information at a glance 9

Chapter 03, Analysis & Findings

03.01 Operational Area 11
03.02 SWOT Analysis 12-14
03.03 Financial Performance 14
03.04 5 years investment growth 14
03.05 Import Performance 15
03.06 Export Performance 15
03..07 Remittence Performance 16
03.08 Consolidated Balance Sheet 17-19

iii
03.09 5 Years Financial Performance 22
Financial Performance Measures 22-29

Chapter Four, Recommendation & Conclusion

04.01 Recommendation 31
04.02 Conclusion 32

iv
CHAPTER ONE
INTRODUCTION

1
Chapter One
Introduction

1.1 Introduction:

The internship program is a compulsory part of Bachelor of Business Administration (BBA).

This program creates a unique opportunity for the student to apply their theoretical knowledge
into practice and gain valuable real world business experience. The report is distributed in many
parts according to the constructions of supervisor of report. This internship report contains the
passing study on “EXIM Bank”. The report is distributed in many parts according to the
constructions of supervisor of report.

1.2 Background of The Study:

Finance is lifeblood of the business. The financial management is the study about the process of
procuring and judicious use of financial resources is a view to maximize the value of the firm.
Therefore manager’s try to present financial reports that show the effectiveness of their
performance in their quest to securing further funds from shareholders.

Financial statement analysis is a method used by interested parties such as investors (current and
potential), creditors and management to evaluate the past, current and project conditions and
performance of the firm and use to compare the strengths and weaknesses in various firms.

Ratio analysis is the most common form of financial analysis .It provides relatives measures of
firm’s conditions and performance. Financial statement discloses the internal structure of the
firm. It indicates the existing relationship between sales and cash income statement account.

In countries where financial instability is rife and financial intuitions are becoming popular,
when it comes to investing, the sound analysis of financial statements is one of the most
important elements in the fundamental analysis process. At the same time, the massive amount of
numbers in a company’s financial statement can be bewildering and intimidating to many
investors, creditors and those who are concern with the financial statement.

1.3 Scope of the Study:

The field of my study is the operation of EXIM Bank Ltd Shimrail (Chittagong Road) Branch.
For conducting this study an overall knowledge of the total EXIM Banks financial condition.

2
The scope of the organizational part covers the organizational background, objective, function,
departmentalization and product and services of The EXIM Bank limited as a whole. The main
part covers the financial analysis of EXIM Bank Bangladesh Ltd. This refers that how the bank
capital is performing over the years.

1.4 Methodology of the Study:

Methods followed to conduct the research are called methodology. The following methodology
was adopted to prepare this report.
1.4.1 Sources of Data

The primary sources:

Which are as follow:
o Face-to-face conversation with the executives and officers.
o Practical work exposures from the different desks of the various
department of the EXIM Bank

The secondary Sources:

The data and information are:
o Annual report of The EXIM Bank Bangladesh Ltd.
o File balance sheet and various documents.
o Different textbooks & materials.
o Website of The EXIM Bank
o Reports submitted by several internship students.

1.5 Objective of the Study:

Board Objective:

To analyze and evaluate of Financial Performance Analysis of EXIM Bank Bangladesh

Limited.

Specific Objectives:

❖ To estimate the future position of EXIM Bank

3
 ❖ To analyze the financial statements of the company by using financial tools.
❖ To evaluate the financial position of the company in terms of solvency, profitability,
activity and earnings ratios.
❖ To suggest effective measures in the existing system of the company.

1.6 Limitations of study:

All the given information is not fully complete. Some of the information is company secret and
important and only provided to some persons to know about it.
However, I try my best to settle and pass up the Report before the due date and hoping it was
satisfied. The study considers following limitations:
✓ Lack of in-depth knowledge and analytical ability for writing such report.
✓ In case of the secondary data collection, there were very few secondary information was
available. There were few supporting books, report, journals etc.
✓ Lack of experience to analyze data.
✓ As the duration of the internship program is three months and the process of this program
is job rotation, so I didn’t get sufficient time in each department to understand their
activities.

4
CHAPTER TWO
PROFILE OF EXIM BANK

5
Chapter Two
Profile of EXIM Bank Ltd.
2.1 Corporate History:
Export Import Bank of Bangladesh Limited was established in the year 1999 under the leadership
of Late Mr. Shahjahan Kabir, Founder Chairman who had a long dream of floating a commercial
bank which would contribute to the socio-economic development of our country. He had a long
experience as a good banker. A group of highly qualified and successful entrepreneurs joined their
hands with the founder chairman to materialize his dream. Indeed, all of them proved themselves
in their respective business as most successful star with their endeavor, intelligence, hard working
and talent entrepreneurship. Among them, Mr. Nazrul Islam Mazumder who is an illuminated
business tycon in the Garments business in Bangladesh became the Honorable Chairman after the
demise of the honorable founder chairman. He is also the chairman of Bangladesh Association of
Banks (BAB). Under his leadership, BAB has emerged as an effective forum for exchanging
views on problems being faced by the banking sector of Bangladesh and for formulating common
policy guidelines in addressing such problems.

The Bank starts functioning from 3rd August, 1999 with its name as Bengal Export Import Bank
Limited. On 16th November 1999, it was renamed as Export Import Bank of Bangladesh Limited
with Mr. Alamgir Kabir as the Founder Advisor and Mr. Mohammad Lakiotullah as the Founder
Managing Director respectively. Both of them have long experience in the financial sector of our
country. By their pragmatic decision and management directives in the operational activities, this
bank has earned a secured and distinctive position in the banking industry in terms of
performance, growth, and excellent management. Under the leadership of Mr. Lakiotullah, the
Bank has migrated all of its conventional banking operation into Shariah Based Islami Banking in
the year July 2004.

In the year 2006, Mr. Kazi Masihur Rahman became the Managing Director of the bank when Mr.
Lakiotullah left the bank after completion of his successful 7 years as MD. Mr. Kazi served in the
bank for next five years. Under his leadership, the bank has been placed on a state of the art
centralized IT platform with two modern data centers where world renowned core banking
software TEMENOS T24 is running along with some alternate delivery channels like ATMs and
SMS banking.

On 25th August, 2011, Mr. Md. Fariduddin Ahmed has joined in the bank as Managing Director.
With his long banking experience, EXIM Bank become fully compliant Bank with adequate
capital and good asset quality. After retirement from Managing Director, he has been continuing
his service for EXIM Bank as Advisor since 27th July 2012.

Dr. Mohammed Haider Ali Miah succeeded Mr. Fariduddin Ahmed on July 25, 2012 and has

6
created a new dimension in EXIM history becoming the first ever in-house Managing director and
CEO of the Bank. Under his far-sighted leadership, EXIM Bank has not only achieved uppermost
level of performance in almost each arena of its activities but also gained confidence to place itself
as one of the dynamic banks through delivering transparent and standard banking services to the
customers in a compliant manner.

2.2 Vision & Mission:

Vision

The gist of their vision is ‘Together Towards Tomorrow’. Export Import Bank of Bangladesh
Limited believes in togetherness with its customers, in its march on the road to growth and
progress with service. To achieve the desired goal, there will be pursuit of excellence at all stages
with climate of continuous improvement, because, in Exim Bank, they believe, the line of
excellence is never ending.

Mission

EXIM Bank has also been able to improve organizational performance via improving the
performance of individual contributors and also recognizes existing talents to fill up the higher
vacancies within the organization or place them in the right position, wherein the best use of
their abilities can be ensured. Their culture promotes sharing of common goal which ensures
harmonious relationship in the working environment.

• Provide quality financial services especially in Foreign Trade

• Continue a contemporary technology based professional banking environment
• Maintain corporate & business ethics and transparency at all levels
• Ensure sustainable growth and establish full value to the honorable stakeholders
• Fulfill its social commitments and
• Above all, to add positive contribution to the national economy.

2.3 Objectives:

The objectives and the goals of EXIM Bank Limited are the following:

➢ Their main objective isn’t maximizing profit but its objective is maximizeing wealth.
➢ EXIM Bank Limited is always ready to maintain the highest quality of services by banking technology
prudence in management and by applying high standard of business ethics through its established
commitment and heritage.
➢ EXIM Bank Limited is committed to ensure its contribution to national economy by
increasing its profitability through professional and disciplined growth strategy for its

7
 customer and by creating corporate culture in international banking area. To establish
welfare oriented Banking system

2.4 Management Structure:

The member of the board directors are responsible for the strategic planning and overall
policy guidelines of the Bank.
Board Of Directors:

• Chairman
• Vice Chairman
• Directors
• Independent Directors
• Managing Director & CEO
• Company Secretary

There are total 16 members on Board of Directors and they are mainly responsible for the
Strategic planning and overall policy of the Bank.

2.5 Organizational Hierarchy:

Managing Director & CEO

Deputy Managing Directors

Senior Executive Vice Presidents

Executive Vice Presidents

Senior Vice Presidents

Vice Presidents

Senior Assistant Vice Presidents

Assistant Vice Presidents

8
2.6 Corporate Information at a glance:

9
CHAPTER Three
ANALYSIS & FINDINGS

10
Chapter Three
Analysis And Findings

3.1 Operational Area:

As a full-fledged Islamic bank in Bangladesh, EXIM Bank extended all Islamic banking services
including wide range of saving and investment products, foreign exchange and ancillary services
with the support of sophisticated IT and professional management. The investment portfolio of
the bank comprises of diversified areas of business and industry sectors. The sectors include
textiles, edible oil, ready-made garments, chemicals, cement, telecom, steel, real state and other
service industry including general trade finance. The bank has given utmost importance to
acquire quality assets and is committed to retain good customers through customer relationship
management and financial counseling. At the same time efforts have been made to
explore/induct new clients having good potentiality to diversify and create a well established
structured investment portfolio and to minimize overall portfolio risk.

Investment: Bank's investment port-folio are segmented under the following heads:

Retail/Consumers investment.
Micro enterprise investment.
Small and Medium Enterprise investment.
Large and Corporate investment.
Syndicate investment .

Modes of investments:

Murabaha (MTR, MPI, MIB).

Bai Muazzal.
Izara Bil Baia.
Wazirat Bil Wakala .
Bai-Salam.
Quard.
Musharaka Documentary Bills (MDB)/LDBP.
Bai-As-Sarf/FDBP.

11
 3.2 SWOT Analysis:
SWOT analysis is the detailed study of an organization’s exposure and potential in
perspective of its strength, weakness, opportunity and threat. This facilitates the organization
to make their existing line of performance and also foresee the future to improve their
performance in comparison to their competitors. As through this tool, an organization can also
study its current position, it can also be considered as an important tool for making changes in
the strategic management of the organization.
Strengths:
➢ EXIM Bank Limited has already established a favorable reputation in the banking
industry of the country. It is one of the leading private sector commercial bank in
Bangladesh. The bank has already shown a tremendous growth in the profits and
deposit sector.
➢ They has provided its banking service with a top leadership and management
position. The Board of Directors headed by its Chairman Mr. Md. Nazrul Islam
Mazumder is a skilled person in business world.
➢ They has already achieved a high growth rate. The number of deposits and the loans
and advances are also increasing rapidly.
➢ They has an interactive corporate culture. The working environment is very friendly,
interactive and informal. And, there are no hidden barriers or boundaries while
communicate between the superior and the employees. This corporate culture
provides as a great motivation factor among the employees.
➢ EXIM Bank Limited has the reputation of being the provider of good quality services
to its customers.
Weakness:
➢ The main important thing is that the bank has no clear mission statement and strategic
plan.
➢ The banks not have any long-term strategies of whether it wants to focus on retail
banking or become a corporate bank.
➢ The path of the future should be determined now with a strong feasible strategic plan.
➢ The bank failed to provide a strong quality-recruitment policy in the lower and some
mid-level position. As a result the services of the bank seem to be Deus in the present
days.
➢ The service quality is poor with regard to Multinational Banks located here.

12
 ➢ Some of the job in EXIM Bank Limited has no growth or advancement path. So lack
of motivation exists in persons filling those positions. This is a weakness of the Bank
that it is having a group of unsatisfied employees.
In terms of promotional sector, EXIM Bank Limited has to more emphasize on that. They
have to follow aggressive marketing campaign.

Opportunity:
In order to reduce the business risk,
➢ EXIM Bank Limited has to expand their business portfolio. The management can
consider options of starting merchant banking or diversify into leasing and insurance
sector. The activity in the secondary financial market has direct impact on the primary
financial market. Banks operate in the primary financial market. Investment in the
secondary market governs the national economic activity. Activity in the national
economy controls the business of the bank.
➢ A large number of private banks coming into the market in the recent time. In this
competitive environment EXIM Bank Limited must expand its product line to enhance
its sustainable competitive advantage. bank.
➢ In addition of those things, EXIM Bank Limited can introduce scheme or loan for
various service holders. And the scheme should be separate according to the
professions, such as engineers, lawyers, doctors etc.
Threats:
➢ All sustain and upcoming multinational, foreign and private banks pose enormous
threats to EXIM Bank Limited.
➢ The default risks of all terms of loan have to be minimizing in order to sustain in the
financial market. Because the default risks lead the organization toward bankruptcy.
EXIM Bank Limited has to remain vigilant about this problem so that proactive
strategies are taken to minimize this problem.
➢ The low compensation package of the employees from mid level to lower level
position threats the employee motivation. As a result, good quality employees leave
the organization and it effects the organization as a whole.

13
 3.3 Financial Performances:

3.3.1 Five years investment growth of the bank:

Total growth in investment is 13.16% then last year.

14
 3.3.2 Import performance:

In the year 2016, total import business of EXIM Bank was BDT 153.93 Billion (1.96 Billion
USD) By handling 43418 number of import letter of credits. Import Business increased by .80%
in 2016 compareto 2015.

3.3.3 Export performance:

In the year 2016, total export business of EXIM Bank was BDT 147.51 Billion (1.88 Billion
USD) from 43372 number of export documents. Export business achieved 1.17% growth in 2016
compare to 2015.

15
 3.3.4 Remittence Performance:

In the year 2016, EXIM Bank received BDT 4.03 billion as wage earners’ remittance by
handling 81246 number of transactions. There was 6.9% growth compare to 2015.

(Annual Report 2016)

16
17
 (Annual Report 2016)

18
 (Annual Report 2016)

19
 (Annual Report 2016)

20
 (Annual Report 2016)

21
 3.4 Financial Performance Measure:

A tool used by individuals to conduct a quantitative analysis of information in a company's

financial statements. Ratios are calculated from current year numbers and are then compared to
previous years, other companies, the industry, or even the economy to judge the performance of
the company.

Ratio analysis is predominately used by proponents of fundamental analysis. Ratio analysis is a

study of the relationships between financial variables. It is very important in fundamental
analysis which investigates the financial health of any financial institution.. By giving a glance
anyone will be able to know what the position that institution is now. Therefore managers,
shareholders, creditors etc. all take interest in ratio analysis.

Here in this report contains the most common ratios and analyze to evaluate the performance of
EXIM over the year 2014, 2015 and 2016.

To do an analysis, the following ratios and values have been calculated:

3.4.1 Current Ratio:

This ratio is calculated by dividing the total current assets of an institution by its total current
liabilities. It shows how any institution like EXIM meets its current liabilities through its current
assets.

Current Ratio = Current Assets / Current Liabilities.

Graph:

Current Ratio

4 Current Ratio

0
2014 2015 2016

22
In 2016 company’s current ratio was 5.8 times higher than current liabilities. Current ratio has
increased than last year as current asset increase also current liabilities increase in a higher
proportion which is good for the company. As we know higher the current ratio is better for the
institution because this higher ratio helps to prevent getting default.

3.4.2 Net profit margin:

Net Profit Margin is a ratio of profitability which is calculated by dividing the net profit after
taxation by revenues or net interest income. It measures how much is it earning from its every
taka of revenue.

Net Profit Margin = Net Profit after Taxation / Net interest Income

Graph:

Net Profit Margin

0.401856669

0.510949298 2014
2015
2016

0.326689578

In 2016 the result was 51% that means in 100 taka of net interest income EXIM Bank’s net
profit was 51 taka. On the other hand in 2015 the net profit was taka 32 against 100 taka of net
interest. Between the years in 2015 and 2016 the company had success to earn handsome profit
margin in percentages. The net profit margin had increased in a higher proportion almost 19% . It
indicates that the Banks outcome is up to the mark.

3.4.3 Return on asset (ROA):

ROA is a profitability ratio which shows how profitable a bank is related to its total assets. ROA
gives an idea that how efficient the management of a bank is to generate profits using its assets.

Return on Assets = Net Profit after Taxation / Total Assets

Graph:

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 ROA

1.20%

1.00%

0.80%

0.60% ROA

0.40%

0.20%

0.00%
2014 2015 2016

ROA is the most used profitability ratio. The EXIM Bank had high ROA in the year of 2016
which were 1.09% In the year 2016 the net profit of the company had Increased.

3.4.4 Return on equity (ROE):

Return on equity measures a company’s profitability which calculates how much net profit that
company may generates with the money that shareholders have invested as equity.

Return on Equity = Net Profit after Taxation / Equity

Graph:

ROE
12.00%
10.00%
8.00%
6.00% Year
4.00%
2.00%
0.00%
2014 2015 2016

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 ROE is very popular ratio toward the shareholders of any company. After doing the analysis
from EXIM Bank’s financial statements its shows those in years 2016 and 2015 and 2014 the
return from 100 taka invested by the shareholders was respectively 11.34%, 8.68% and
11.78%.EXIM Bank Maintains Higher rate of return for shareholder and its good for them.

3.4.5 Assets Turnover Ratio:

The asset turnover ratio is an efficiency ratio that measures a company's ability to generate sales
from its assets by comparing net sales with average total assets. In other words, this ratio shows
how efficiently a company can use its assets to generate sales.

The total asset turnover ratio calculates net sales as a percentage of assets to show how many
sales are generated from each dollar of company assets. For instance, a ratio of .5 means that
each dollar of assets generates 50 cents of sales. The asset turnover ratio is calculated by dividing
net sales by total assets.

Graph:

Asset Turnover Ratio

0.12

0.1

0.08
Asset Turnover Ratio
0.06

0.04

0.02

0
2014 2015 2016

The EXIM Bank’s assets turnover ratio in 2016 and 2015 and 2014 are respectively 0.11, 0.10
and 0.089 which rate is decrease in ratio.

25
 3.4.6 Total Equity-Assets Ratio:

The equity ratio highlights two important financial concepts of a solvent and sustainable
business. The first component shows how much of the total company assets are owned outright
by the investors. In other words, after all of the liabilities are paid off, the investors will end up
with the remaining assets.

The equity ratio is calculated by dividing total equity by total assets. Both of these numbers truly
include all of the accounts in that category. In other words, all of the assets and equity reported
on the balance sheet are included in the equity ratio calculation.

Graph:

Total Equity Ratio

0.096

0.094

0.092
Total Equity Ratio
0.09

0.088
2015 2016 2014

Total Equity Ratio of EXIM Bank’s was .092 in 2016 which is Decreasing than 2015 that was
.095.

3.4.7 Capital Adequacy Ratio:

The capital adequacy ratio (CAR) is a measure of a bank's capital. It is expressed as a percentage
of a bank's risk weighted credit exposures. Also known as capital-to-risk weighted
assets ratio (CRAR), it is used to protect depositors and promote the stability and efficiency of
financial systems around the world.

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Graph:

Capital Adequacy Ratio

11.77% 11.70%
2014
2015
2016

12.04%

Capital Adecuacy Ratio is decrease in 2016 then 2015, where in 2015 was 12.04% and in 2016 is
11.76%.

3.4.8 Earning Per Share:

Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
of common stock. Earnings per share serves as an indicator of a company's profitability.

Graph

EPS
4

EPS
0
2014 EPS
2015
2016

27
In 2016 EXIM’s earning per share increased from 2015, but in 2015 it was decreased.

3.5 Performance of EXIM:

Result 2014 2015 2016

Total income 2465.68 2086.55 3039.76

Total assets 232834 265148 29113

Total equity 22977.06 25122.42 26467.75

Profit for the year 2465.68 2086.55 3039.76

3.6 At a glance the ratio of EXIM:

SL No Ratio Analysis 2014 2015 2016

01 Current Ratio 6.8% 4.8% 5.83%
02 ROE 1.15% .84% 1.09%
03 ROA 11.34% 8.68% 11.78%
05 Asset turnover Ratio 0.1108 0.1024 0.0892
06 Net Profit Margin 0.4019 0.3267 0.5109
07 Total Equity Ratio 0.0911 0.0956 0.0913
08 Capital Adequacy Ratio 11.70% 12.04% 11.77%
09 EPS 1.92 1.48 2.15

3.7 Findings:

➢ From the current ratio it is seen that EXIM Bank’s current ratio was going upward from
2015 to 2016, but it was decreased in 2015 from 2014.

➢ The greater outcome the better the EXIM Bank’s performance in 2016.The result was
increasing in profit margin from 2015 to 2016, But Bank’s profit margin was decline
from 2014 to 2015.
➢ ROA is a profitability ratio which shows how profitable a company is related to its total
assets. In the year 2015 the net profit of the company had dencreased, but in2016 it had
increased from 2015.

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 ➢ Return on equity measures a company’s profitability. ROE is increasing in 2016. The
percentage better for the company but not up to the mark.

➢ The EXIM Bank’s assets turnover ratio in 2016, 2015and 2014 are respectively 0.089
0.1024 and .1108 which rate is decrease in ratio.

➢ Total Equity Ratio of was 0.091 in 2016 which is decreasing than 2015 that was 0.095.

➢ EPS is increased from previous year, its positive for the Bank.

3.8 Other findings:

• Centralization:

The Bank Capital Resources is too much centralized. For each and every move, branch office
has to go for permission from the Head Office. The Head Office tightly controls each and every
branch office. This sort of dependency on Head Office slows down the activities of others office.

29
 CHAPTER four
RECOMMENDATION & CONCLUSION

30
Chapter Four
Recommendation & Conclusion

Recommendation

EXIM Bank should start strategic planning to increase the infrastructures and also important
constructs needed to support its large customer base. So, considering the service sector of
Bangladesh, the company should be more conscious to deal with its customers as the customers
have now more choice to company with and there are institutions that are intensifying
competition by focusing more on superb customer service.

To identify these company needs proper information system is required badly. EXIM Bank has
to minimize their service gap though strong study on customer objection, expectation, perception
and critical internal marketing aspects. Steps should be taken to implement the new process in
order to ensure a smooth service as promised to customers.

❖ Company should increase their Current asset and current liability, this will help them to
increase their Current Ratio.
❖ EXIM Bank should increase more Consumer effective activity. That will help them to
increase their profit margin.
❖ They should invent other type of facilities to attract more customers which is different
from other company.
❖ Should develop more strategic planning as to compete with its rival Competitors.
❖ Problems regarding IT and internet link should take seriously.
❖ EXIM Bank should recruit more capable & experiences employees all over the country.
❖ EXIM Bank should maintain errors-free customer’s record & database which will help to
identify the major customer’s facility requirements.
❖ As per customer response, EXIM Bank is taking long time to process & disbursed the
loan. More easy way should find to minimize the duration for loan process.
❖ EXIM Bank is needed to reach the brand value to the customers for building up ideal
relationship to create loyal customer.
❖ EXIM Bank has enough liquid capital. They may expand the work field where makes
more profit.

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 Conclusion

In recent times the private Bank’s subsidiary companies are doing an outstanding business, so it
is clear that the modern people are more concerned about securing their valuable assets and get
high-quality and timely services. For this reason lot of new companies have been established in
last few years and these companies have made this banking sector very competitive. So, now
companies have to organize their operation and do their operations according to the need of the
market.
In this competitive world this sector has trenched its wings wide enough to cover any kind of
financial services anywhere in this world. The major task for company to survive in this
competitive environment is by managing its assets and liabilities in an efficient way.

BIBLIOGRAPHY
Web Sites:

✓ http://www.wikipedia.org/
✓ http://www.eximbankbd.com
✓ http://www.assignmentpoint.com
✓ http://www.scirbd.com
✓ www.financeokey.com

Books:

▪ Lawrence J Gitman (2003), Principal of Managerial Finance- 12th edition.

▪ C.R.Kothari, Research Methodology-Second Revised Edition,New Publishers.
▪ Frederic S. Mishkin, The Economics of Money, Banking, and Financial Markets-
Seventh Edition.
▪

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 Reports:

• Annual report-2016, The EXIM Bank Limited.

• Annual report-2015, The EXIM Bank Limited.
• Annual Report-2014, The EXIM Bank Limited.

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