Financial Statement Analysis of Dhaka Bank Limited

Dhaka Bank Limited is high performing private commercial bank, which further consolidated its position in the market in terms of quality services to the customers and value addition for the shareholders. The bank made healthy progress in all areas of business in 2007.

Uses of Fund
Loans & Advances Investments Money at Call Premises & Fixed 69% 10% 6% 1%

Assets Other Assets 3% Cash & Balance with 11% Bank

11% 3% 1% 6% 10% 69%
Uses of Fund
Loans & Advances Investments Money at Call Premises & Fixed Assets Other Assets Cash & Balance with Bank

Balance Glance

Sheet

at

Sources of Fund
Paid up Capital Reserve and Surplus Deposits Borrowing from Banks Other Liabilities 3% 3% 84% 1% 9%
Sources of Fund

Assets
Total assets of Dhaka As of December 2007 total assets of the bank stood at Tk.57.44 billion, an increase of 21% as against 2006. The increase in asset was mainly driven by significant growth of customer deposits. The growth of customer
P aid up Capital Reserve and S urplus Depos its B orrowing from B anks Other Liabilities

9% 1%

3% 3%

deposits was used for funding in loans & advances and holding of securities for SLR.

84%

Asset Structure Property & Assets

Property & Assets Cash

2007 3,039,925,9

De C o m p o s itio n o f A s s e t s in 2 0 0 7

3%

1%

0% 5 %

6%

6% 10 %

00 Balance With Other 3,281,295,3 Banks and Financial 15 Institutions

69%

Money At Call And 3,415,950,0 Short Notice 00

Investments Loans & Advances Fixed assets Other Assets Non-banking Assets

5971748749 3997190324 0 291259210 1471168893 -

Cas h B a la n c e W ith O the r B a n k s a n d F in an c ial In s titu M o ne y A t C a ll A n d S h o rt N o tic e In ve s tm en ts Lo a n s & A d va n c es F ix ed a s s e ts O th e r A s s e ts N o n -b a n k in g A s s e ts

Loans and Advances

Decomposition of 2007 9749884017 867769 2705069031 620684078 295608993 12161188414 6939242389

Loans and Advances Secured Overdraft Demand Loan Cash Credit House Building Loan Transport Loan Term Loan Loan Against Trust Receipt Payment

against 785691026

documents Loan against imported 827037347 merchandise Loan against accepted 280601937 bills Packing credit Lease finance Credit card Personal loan Other loans Bills purchased discounted 40613458 1053546236 61566389 2212137958 972124907 and 1266039291

balance exposure in different sectors. High

Decom position of Loans and Advances

concentration sectors are garment industries with outstanding of Tk. 7524 million, housing and construction with Tk. 4093
0%

0% 6% 3% 0% 1% 2% 2%

2% 3%

24%

million, food and allied industries with Tk. 2949 million and engineering and metal including ship breaking with Tk. 1903 million as at 31st December 2007.
Sector w ise Advance 0% 2% 19% 46% 3% 7% 2% 2% 5% 10% 3% 1%

17% 30%

7% 2% 1%

Secured Overdraft Demand Loan Cash Credit House Building Loan Transport Loan Term Loan Loan Against Trust Receipt Payment against documents Loan against imported merchandise Loan against accepted bills Packing credit Lease finance Credit card Personal loan Other loans Bills purchased and discounted

Investments Investments Governments Others

10%

2007 5354586956 617161793

Investments

Agriculture Pharmacheuticles Textile and Garments Chemical Industries Food & Allied Transport & Communication Electronics & Automobile Housing Engineering Energy & Power Service Other

Liabilities Structure
Total liabilities of the bank stood at Tk.

Governments Others

54318 million as of 31st December 2007 registering a growth of 21% over the last year. This has happened for increase of deposits from customers mainly.

90%

Sector wise Advance

Sectoral allocation of advances reveals a well diversified portfolio of the bank with

Decomposition of Deposit

Types Deposit Current

of Taka Million and 4625 4393

in % of Total Deposit 9 9
29%

Decomposition of Contingent Liabilities Acceptance

11%

2%

other deposits Savings

32%

and endorsement s Letter of credit Letter of guarantee

deposits Short term 1998 deposits Fixed deposits 34867 DPS/MDS & 1132 Gift Cheques Bills payable 1716

4 72 2 4
26%

Bills for collection Other contingent liabilities

Income Indicator
Decomposition of Deposit Base

Main source of income for the bank during the year 2007 were interest income which increased by 30% from 2006, which is a result of high growth in advance. Income from investments increased by 38% due to the purchase of five and ten years governments bonds at higher rate of interest for SLR purpose. Commission and exchange earnings

2% 4%

9% 9% 4%

Current and other deposits Savings deposits Short term deposits Fixed deposits DPS/MDS & Gift Cheques Bills payable

72%

Off-balance sheet items

Contingent liabilities Tk. In million Acceptance and 655 endorsements Letter of credit Letter of guarantee Bills for collection Other contingent liabilities 527 588 233 48

increased by 37% during the year 2007 due to increase in brokerage commissions.

Sources of Income

1.29

1.27

1.40

1.22

1.23

11% 7%

3%

Return on Assets

79%
Interest Income Income from investment Commission/Fees, Exchange Earnings and Brokerage Other operating income

1.45 1.4 1.35 1.3 1.25 1.2 1.15 1.1

1.4 1.29 1.27

R O A

1.22

1.23

2003

2004

2005

2006

2007

Return on Assets

Operating Indicators ROE (%)

2003 22.23 2004 24.03

Performance

Cost of Deposit (%)

2003 7.24 2004 6.75 2005 8.13 2006 9.15 2007 8.97

2005 20.89
ROE

2006 22.74

2007 22.53
10 8 6

Cost of Deposit

25 24 23 22 21 20 19 2003 2004 2005 Year 2006 2007

4 2 ROE 0 2003 2004 2005 2006 2007

Cost of Deposit

Cost
Last five years ROE shows a fluctuating trend. The reason for this may be political instability.

of

Fund

(Deposit

cost and Overhead cost) (%)

2006 11.30 2007 11.18

ROA (%)
2003 2004 2005 2006 2007 5

Cost of Fund
11.35 Cost (%) 11.3 11.25 11.2 11.15 11.1 2006 year 2007 Series2

% of classified loans against total loans 4 Classified loans 3 2 1 0 2006 Year % of classified loans against total loans 2007 1.64

3.15

Credit Deposit Ratio Interpretation

2006 81.94 2007 82.03
Credit Deposit Ratio 82.05 82 81.95 81.9 81.85 2006 Year 2007 Credit Deposit Ratio

All most all the operating performance indicators are showing improving or we can say recovering trend. This dismal performance over the years under focus can be a result of political instability during the period. Since, in this report we are not comparing the banks performance with its competitors or with the industry so it is difficult to comment on whether the bank is doing good or bad in comparison with others. But in a stand alone basis, the bank improved its performance from 2006 and recovering if we take account the earlier

Percentage of classified loans against total loans & advances

2006 1.64 2007 3.15

years as well.