Performance Measurement of Banking Industry: Evidence from DSE listed Banks

Abstract

This Paper has showed the comparative performance assessment of listed banking Industry in DSE. And analysis Board attributes, board Size, ownership. Financial ratios have been employed to measure the Profitability, capital adequacy, Asset situation, Liability Situation, Liquidity Performance of all listed Bank. Comparing this financial ratio, easily determine which year performance is good or bad. That’s why I was found some random ratios. But some ratios are given directly on annual report. ROI determine Return on Investment. ROI is a versatile and simple. If an investment’s ROI is net positive, it is probably worthwhile. So, we can easily find out and determine from my excel part which banks ratio was good. ROE determine return on equity. The shareholder or others investors on Bank easily can see if they’re getting good return on their money, while a bank can evaluate how efficiently they are utilizing the firm’s equity. And it must be compared to the historical ROE and industry’s ROE average. EPS determine Earning per share. EPS is the portion of the company’s profit that is allocated to every individual share of the stock. ROCE determine profitability and how efficiency its capital is made us. In this report ROI, ROE, EPS, ROCE is a dependent part. And in this report, I showed Board size, Religion, Board Attributes, Ownership Attributes, which is under of Independent variables. Board Attributes have some parts –Board size, Woman on Board, Foreign member, Family member on board. Ownership Attributes have some parts- Foreign Ownership, Family ownership. Religion part showed which Bank follow Islamic banking system and which banking system doesn’t follow Islamic rules. Leverage Ratio also part of Independent variables. This leverage ratio expressed Debt/ Total Asset. The debt to asset is commonly used by analyst, investor and creditors to determine the overall risk of company.