Ab Bank Financial Performance

Executive Summary:

Introduction:

The economy of Bangladesh is in the growing stage and such growth is fueled by high quality of investment in private banking sector. Such investors saw the booming economy of Bangladesh in this sector and decided to invest more in private banking. Following the same process, the private banks have joined the banking industry to serve the common and corporate sector and to enhance their profitability in the economy.

Following the emergence of Bangladesh in 1971, government nationalized commercial banking to enable banks to focus on socio-economic obligations, also to make the national economy serve the country’s development needs in a better way and ensure judicious use of financial resources, both in rural and urban areas. To achieve these objectives, Nationalized Commercial Banks (NCBs) were required to open more branches in rural areas and thus re-channel credit. But earlier there were only few government banks.

However, with time, the banking industry of Bangladesh is observing the good times as the number of private banks are booming. The Bangladesh Bank persuaded and encouraged such investments to operate in the country and most of the private banks have established their operation and due to the advantage of reduced hassle, been doing very good in terms of profitability. One of the leading banks in terms of the span of service and product offering and promptness of service is Arab Bangladesh Bank Ltd.

Objectives

The main objective of this report is to analyze the performance of a listed commercial bank over time (from 203 to 2008) in terms of the investors point if view. This report is prepared as the term paper for the Bank Management (FIN 464) course to fulfill a partial course requirement. We also came up with some recommendations for improving the operational efficiency and financial performance of these banks.

Particular aims are to analyze the performance in terms of:

• Liquidity...