Analysis of Financial Performances: A Case Study of Prime Bank Limited

Abstract

The prime objective is to measure the financial performance analysis of Prime Bank Limited. I analyzed the bank’s financial performances using the most widely accepted tool of ratio analysis. I applied financial statement data over the period of 2014-2018. After preparing this report I have come to know that analysis of financial statements helps to overcome financial shortcomings and make future decisions and strategies. Prime bank maintained a suitable and attractive position before 2014. The different dimensions are used to measure the bank's overall performance. The liquidity position of Prime Bank ltd has gone low than before after the year 2014. If we focus on Profitability ratios such as ROA and ROE we can say that in 2018 both the ratios were not in a comfortable position compared to 2014. On the positive note, if we focus on the turnover ratios the Net Interest Margin was good compared to previous years and kept a good operating efficiency in recent years. Bank also maintained a stable debt position. Although industry lost some of its momentum due increase in non-performing loan PBL maintained a very low NPL rate. If we look at market value the price-earnings ratio increased over the years but EPS has decreased compared to 2014. In the last part, I have also done the analysis of DuPont to breakdown ROE.