Financial Performance Analysis of Al-Arafah Islami Bank

Abstract

Al-arafah islami bank is the largest state owned commercial bank in Bangladesh with total of 119 branches. Total of 746 branches in rural areas, 467 branch in urban areas and 2 are located overseas . The functions of the bank covered a wide range of banking and function activities to individual, firms, corporate bodies, multinational agencies and the rural area. The bank provides more than 21 types of free services on behalf of the government of Bangladesh through its rural and urban branches as part of their commitment to society.

In the new competitive commercial enterprise era, non-public banking zone is getting greater aggressive in Bangladesh. In this quarter the most used monetary statements are the balance sheet and profit and loss account. In this report, I have given ratio analysis of Al-arafah islami bank. I have used financial tools like (liquidity ratio, Efficiency ratio, Asset activity ratio, Credit risk ratio, Profitability ratio) to analyzed financial position of the bank. Beside this tools I have also used common size analysis, trend analysis of balance sheet and income statement of Al-arafah islami bank. By using the tools, I have been able to teach at some graphical interpretation. Without this I have also mentioned others side of the Bank like (Products, Service and Social responsibility). In the last chapter of the report, finding and recommendations were given to improve the financial performance of the bank.