Universal Journal of Accounting and Finance Vol. 4(5), pp. 166 - 184
DOI: 10.13189/ujaf.2016.040503
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Financial Performance Analysis of Scheduled Commercial Banks in Bangladesh

Mohammad Mizanur Rahman ^*
Faculty of Business Studies (FBS), Bangladesh University of Professionals (BUP), Bangladesh

ABSTRACT

The purpose of this study is to provide a comprehensive financial performance evaluation of scheduled commercial banking companies in Bangladesh. The nature of this study is descriptive and relational. This inductive research uses financial ratio analysis technique of cross- sectional data to measure, describe and analyze the financial performance of publicly traded commercial banks in Bangladesh. The financial performance issue has been grouped into profitability ratio, market ratio, and value added metrics for the assessment of internal based, market -based, and economic based performance respectively. Ranking of banks has been done on the basis of financial performance in the period of 2015; and it has been found that Dutch Bangla Bank Ltd. is one of the leading banks. The study findings have revealed that most of the banks except a few have shown poor economic performance, negative economic value added (EVA), and undervalued market price per share. The study findings have also shown the significant correlation between "EVA and Profitability Ratio" and "EVA and Market Ratio", and termed EVA as an independent measure of performance. The concerned research on evaluation of financial performance has covered mainly publicly traded commercial banking companies in Bangladesh only certain time duration, and therefore has raised the issue of generalization of the results. The analysis of financial performance is used by most of the business communities. So, the study findings may provide useful guidance for trade creditors, management for banks, and the general investors. In addition, the assessment of bank's financial performance can be a useful source of information for the Bangladesh government's policy makers.

KEYWORDS
Financial Performance, Scheduled Commercial Banks, Economic Value Added

Cite This Paper in IEEE or APA Citation Styles
(a). IEEE Format:
[1] Mohammad Mizanur Rahman , "Financial Performance Analysis of Scheduled Commercial Banks in Bangladesh," Universal Journal of Accounting and Finance, Vol. 4, No. 5, pp. 166 - 184, 2016. DOI: 10.13189/ujaf.2016.040503.

(b). APA Format:
Mohammad Mizanur Rahman (2016). Financial Performance Analysis of Scheduled Commercial Banks in Bangladesh. Universal Journal of Accounting and Finance, 4(5), 166 - 184. DOI: 10.13189/ujaf.2016.040503.