Financial Performance Analysis of Commercial Bank of Ceylon, Bangladesh

Abstract

The objective of the report is to measure performance analysis of the Commercial Bank of Ceylon Bangladesh (CBC) over the financial statement data from 2015 to 2018. A ratio analysis technique has been used to do it. The financial ratio analysis shows that how efficiently and effectively Commercial Bank of Ceylon is managing its operations. Bank of Ceylon’s performance is measured in terms of different aspects of businesses like profitability, efficiency, solvency, etc. In the profitability analysis, return on assets and return on equity ratios seemed to be reasonably stable over the analysis period. The asset turnover ratio does not change so much but the financial expense ratio increased in the recent period. This indicates that the bank fails to maintain its operating efficiency. If we look at the solvency dimension of CBC, it is observed that the bank’s amount of borrowing increased slightly but the capacity to pay the debt obligations remains stable. Commercial Bank of Ceylon’s liquidity position has been improved over the years and looked good. The conclusion can be made that Ceylon’s overall performance found stable.