Financial Performance of Bangladeshi Listed Commercial Banks

Abstract

This paper aims to examine the financial performance of Bangladeshi listed commercial banks. The study analyzed the financial performances of banks categorized into three generations—first, second, and third—based on their year of commencement of operations in the country. The data of a total of 24 banks, 8 from each generation, listed in the Dhaka Stock Exchange (DSE), has been collected from audited financial statements for the time period of 13 years, from 2010 to 2022. Data has been analyzed using different ratios of profitability, liquidity, capital adequacy, operational efficiency, and credit risk. The ANOVA test also has been used to make a comparison of profitability—the return on assets (ROA), and return on equity (ROE) of the banks of different generations. According to the results, the average profitability ratios in terms of ROA, and ROE of the second-generation banks showed their credibility than banks of other generations; while first generation banks kept higher liquidity, and capital adequacy with higher credit risk than the banks of other generations. The first-generation banks also showed a lower cost-expense ratio, and a higher efficiency in terms of operation, than the banks in the second and third generations. The research also discovered that the profitability of banks of different generations significantly varies from one another.  

Keywords: {'name': 'Financial performance, earning ability, commercial banks, ratios analysis'}

Authors & affiliations

Rejaul Karim
Affiliation not supplied

Md. Mahmud Hasan
Affiliation not supplied

Abdul Waaje
Affiliation not supplied

Mst. Shahira Hoshain Yesmin
Affiliation not supplied

Md. Mustaqim Roshid
Affiliation not supplied

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