Financial Performance Analysis of Social Islami Bank Limited

Abstract

I tried to analyse the financial performances of Social Islami Bank Limited applying ratio analysis technique. The main data collected from the annual financial report of SIBL in 2013-2017. Ratio analysis has been done focusing on five fundamentals dimensions of banking operations like liquidity, profitability, efficiency, solvency and market aspect. Profitability ratios designate a banks overall efficiency and performance. By analyzing we said that return on equity ratio is good for the SIBL .Management is effective in generating profit by using shareholders equity. Earnings per ratio indicates that market believe SIBL will do better in the future. So I found that overall profitability of SIBL is good. Analysis from solvency shows that SIBL using more leverage. We know that from the debt to equity ratio that SIBL is using too much debt to finance is relative to shareholders equity fund. Solvency of SIBL is not quite good. From the price earnings ratio I found that SIBL price earnings ratio increased over the years. So we see that market believes SIBL will do better in the future. After analyzing of total asset turnover ratio and inventory turnover ratio found that SIBL is very efficiently managing its internal asset and liabilities. Liquidity ratio shows how quick SIBL is able to convert its asset into cash. So we clear that liquidity condition of SIBL is very good. We believe that SIBL will be able to achieve enough current assets to pay off current liabilities in the future time also.