A Comparative Analysis of Performance Evaluation, Liquidity Gap Analysis and Other Issues of Dutch –Bangla Bank Ltd. and Premier Bank Ltd.

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PROFITABILITY RATIO ANALYSIS: Najmun Nahar Srity
Return on Asset (ROA): ID.No.091-11-924

Figure: Return on Asset (ROA)
Interpretation:
ROA (Return on Asset): ROA is a indicator of managerial efficiency, it indicates how capable the management of bank has been converting the institution’s assets into net earnings. In this example, the DBBL earned in year 2010 is 1.989693165 and in 2009 is 1.39102595.The Premier Bank in year 2010 is 2.632 and 2009 is 2.2988, which means the 2010 is than the 2009 by using tk. 100 of assets. Here we see that Premier Bank is higher on ROA, SO Premier bank is better than DBBL.

Return on Equity (ROE): Figure: Return on Equity (ROE)

Interpretation:
ROE (Return on Equity): ROE is measure of rate of return following to this bank’s shareholder. If approximates the net benefit that the stockholder have received from investing their capital in the bank. For this example, DBBL shareholders will get 2010 is 28.63057606 and 2009 is 26.1431769. The Premier Bank shareholders get in 2010 is $28.0636 and 2009 is 23.4650, which mean the 2010 is than the 2009 by using tk. 100 of assets. Here we see that Premier Bank is higher on ROA, So DBBL is better than Premier Bank.

NIM (Net Interest Margin):

Figure: NIM (Net Interest Margin) Interpretation:
NIM (Net Interest Margin): Net interest margin it measures how large a spread between interest revenue and interest expenditure management has been able to achieve by close control over the bank’s earning assets and pursuit