Financial Performance Analysis of Islami Bank Bangladesh Limited

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.