Internship Report On Evaluation of Financial Performance OF BRAC Bank PLC

Abstract

In the fast-paced commercial world of today, Bangladesh's private banking sector is growing more and more competitive. By serving as a link between surplus and deficit economic units, commercial banks are essential financial intermediaries. By effectively allocating financial resources, they promote economic development by mobilizing deposits from surplus units and extending loans to deficit units. The financial accounts of BRAC Bank Plc and my internship experience served as the foundation for this study. It was a fantastic chance to acquire real-world experience and understanding of the several banking functions of BRAC Bank Plc. I chose the topic of "Evaluation of Financial Performance of BRAC Bank Plc," with a focus on the years 2019–2023, under the direction of my faculty supervisor. The financial performance, efficiency, and stability of BRAC Bank Plc are evaluated in this study through a thorough ratio analysis over the five-year period from 2019 to 2023. Return on Equity (ROE), Return on Assets (ROA), Earnings per Share (EPS), Price-to-Earnings (P/E) Ratio, Net Interest Margin (NIM), Net Non-Interest Margin, Net Operating Margin, Degree of Asset Utilization, and the Equity Multiplier are among the important financial measures that are included in the study. BRAC Bank's financial performance peaked in 2019, according to the statistics, with the greatest ROA (1.64%), ROE (14%), EPS (4.57), and NIM (4%). But after 2019, the bank encountered difficulties like diminishing returns and shrinking margins, which were probably brought on by both internal and external economic reasons. After a sharp decline in 2020, ROE and ROA gradually recovered in the following years, with ROE rising to 11% and EPS returning to 4.53 by 2023. The Degree of Asset Utilization and Equity Multiplier offer information on financial leverage and operational efficiency in spite of these difficulties. The increasing equity multiplier, which reached 11.39 in 2023, despite the fall in asset utilization, suggests a larger reliance on debt financing, which, if not handled well, might both boost asset expansion and add to financial risk. With a respectable rebound in earnings and shareholder returns in the subsequent years, the data indicates that BRAC Bank maintained a steady and robust financial position throughout the time. The bank showed strong customer service, efficient asset management, and operational effectiveness. The institution's ability to recover from downturns demonstrates strategic strength and adaptability, despite some indicators displaying variability.