Abstract:
The banking industry makes a significant contribution to our country's economic growth. Islamic
banks have made major contributions to Bangladesh's prosperity and development. IBBL (Islami
Bank Bangladesh Limited) was founded in March 1983.This study examines Islami Bank
Bangladesh Limited's financial performance over the previous five years from 2016 to 2020. This
study will offer a review and analysis of the IBBL's profitability, liquidity, leverage position, and
activity conditions, common size, and trend using statistics from the previous five years' financial
statements (2016-2020).
The main objective of my report is to analyze IBBL's financial performance, highlighting key
factors that hamper success and making recommendations. This report will provide an evaluation
and analysis of the Debt ratio, ROA, ROE, operational profit ratio, net interest income ratio, and
interest spread ratio using figures from the financial statements for five years (2016-2012). The
ratios were able to provide a clear concept of the overall performance of the company.
From the ratios analysis we can say that the performance of Islami Bank Bangladesh Limited is
decreasing after 2018 because of high inefficient cost management and asset utilization. The bank
increases the use of debt which will increase the interest expense. After this there are some
recommendations are given to overcome from this situation.
