Financial Statement Analysis
Of
Sonali Bank Limited
Internship Report
On
Financial Statement Analysis
Of
Sonali Bank Limited
Submitted by:
Md Kamrul Hassan Munna
BBA Program 2019(Batch-22)
Roll No: 160
Supervisor:
Nadia Ahmed
Assitant Professor
Department of Management
Faculty of Business Studies
University of Dhaka
Date of Submission: 27th February, 2020
Letter of Transmittal
27th February, 2020
To
Nadia Ahmed
Assistant Professor
Department of Management
University of Dhaka
Subject: Submission of Internship report
Dear Madam,
I would like to submit my Internship report titled ‘Financial Statement Analysis’ of Sonali Bank
Limited prepared as a part of the requirement for BBA program. I have successfully completed
my internship program in ‘Uttar khan’ Branch of Sonali Bank Limited and I worked there as an
intern. I would like to thank you for giving me the opportunity to work on such a topic for which
I have learned so many things and gathered a vast knowledge about our banking industry.
Your acceptance and appreciation is very important and it will inspire me a lot. I would like to
clarify all the things if there is a need of any explanations. Would you please kindly accept my
internship report and oblige thereby.
Sincerely yours,
Md Kamrul Hassan Munna
Id: 24-160
Department of Management
University of Dhaka
Acknowledgement
At the beginning I am very much grateful to almighty for giving me strength and opportunity and
sound mind to complete the internship report. I am grateful to many individuals for completing
my internship report successfully.
First of all I would like to thank to my Internship Supervisor, Nadia Ahmed, Assistant Professor,
Department of Management, University of Dhaka for guiding me and encouraging me to work
on this exciting topic for my internship report. I strongly believe that, these will assist me a lot to
make me more professional and building my future professional career.
I would like to gratify my external supervisor Ms. Tahmina Rahman, Senior Executive Officer
for supervising and helping me in the work at Sonali Bank Limited, Uttar Khan Branch. She had
been very helpful through the internship program and provided all necessary information to
make this report. This internship report might never have been completed without the necessary
particle knowledge, assistance of many books, articles, websites and secondary data. It enhanced
my practical knowledge in corporate culture.
Finally, my heartiest thanks go to others who were involved and helped directly and indirectly to
prepare this report. Without them all these would not have been made possible.
Letter of Endorsement
This is to certify that internship report on ‘Financial Statement Analysis’ of Sonali Bank Ltd. is
done by Md Kamrul Hassan Munna, ID: 24-160 as partial fulfillment of the requirement of BBA
program from Department of Management, Faculty of Business Studies, University of Dhaka.
The report has been prepared under my guidance and is record of the bona fide work carried out
successfully.
_____________________
Signature of the Supervisor
Nadia Ahmed
Assistant Professor
Department of Management
University of Dhaka
Executive Summary
Sonali Bank Ltd. carries banking activities through its 1224 branches in the country. The
commercial banking activities of the bank encompasses a wide range of services including
mobilizing deposits, providing investment facilities, discounting bills, conducting money transfer
and foreign exchange transactions, and performing other related services such as safe keeping,
collections and issuing guarantees, acceptances and letter of credit.
Sonali Bank Ltd. is one of the largest banks in Bangladesh. It is well known for its organizational
reputation, expertise, professionalism. The report is descriptive in nature. The report was entitled
“Financial Statement Analysis of Sonali Bank Ltd.”. For preparing this report researcher used
secondary data. Quantitative data was analyzed in this report. Due to the time limitation, the
scope and dimension of the study has been curtailed.
Financial statement analysis techniques used in this report are ratio analysis, trend analysis and
cash flow analysis. Under the financial ratio analysis process there are few categories to identical
area of financial institution. This report tried to concentrate to get overall business overview
from profitability, liquidity, assets management and solvency ratio analysis. Under vertical and
horizontal analysis researcher made comparison different aspects of financial position. Here
financial statement analysis involved a comparison of a firm’s performance among the years.
The current position of Sonali Bank Ltd. is not much satisfactory. The current ratio was below
the standard. The net profit margin of 2018 was less than the previous year 2017. In 2018 it was
5.7%, in 2017 it was 22%. The debt ratio was very high on average 0.91. In 2018 it was 0.91 that
was less than year 2017. The equity ratio was less than 50%. The return on equity was decreased
in 2018 and comes to the point of 3.22 %, year 2018 it was 10.7%. Also earnings per share were
decreased in 2018.
The researcher has founded that current ratio is increasing so Sonali Bank Ltd. should keep it up
the increase the current asset to hold the increase of current ratio.
The researcher has conducted a Common Size Statement Analysis of Financial Statements of
Sonali Bank Ltd. from the year 2015 to 2016, where it shows an increase and decrease of the
various components of balance sheets and income statements over the years expressed in
percentage.
Financial soundness and management skill of Sonali Bank Ltd. is quite good boosting up at a
satisfactory level. The top level authority, management team and executives of the bank are
concern about their investment, market expansion and more innovative and effective financial
performance to make JBL perform better in future.
Table of Contents
Topic Page No
Letter of transmittal
Acknowledgement
Letter of Endorsement
Executive summary
Chapter Chapter Name Chapter contents Page
Number No
Chapter 1
1
1.1 Origin of the report 2
1.2 Background of the study 2
1.3 Objectives of the report 2-3
1.3.1 Broad objective
1.3.2 Specific objectives
Introduction 1.4 Scope of the study 3
1.5 Methodology 3
1.5.1 Sources
1.6 Analysis techniques 3
1.7 Limitations of the study 4
Chapter Organizational 5
2 profile of SBL
2.1 A brief overview of Sonali Bank Ltd. 6
2.2 Vision 7
2.3 Mission 7
2.4 Slogan 7
2.5 Core values 7-8
2.6 Ethical principle 8
2.7 Strategic objective of SBL 8
2.8 Corporate profile of SBL 9
2.9 Corporate organogram of SBL 10
2.10 Objectives of SBL 11
2.11 Functions of SBL 11
2.12 Core Business of SBL 11-
12
2.13 Core competencies 12
2.14 Corporate social responsibilities 12-
13
Chapter- Analysis and 14
3 findings
3.1 Ratio Analysis 15-
3.1.1 Internal liquidity ratio 23
3.1.2 Activity ratio
3.1.3 Solvency ratio
3.1.4 Operating profitability ratio
3.2 Trend analysis 24-
3.2.1 Vertical Analysis 29
3.2.2 Horizontal Analysis
3.3 Cash flow analysis 30-
33
3.4 Findings 34
Chapter- Conclusion & 35
4 Recommendations
4.1 Conclusion 36
4.2 Recommendations 37
Bibliography 38
List of Figures
Figure No Contents Page No
1 Organogram of SBL 10
2 Current ratio 16
3 Net profit margin 20
4 Earnings per share 22
5 Properties and asset of 2018 25
6 Liabilities of 2018 25
7 Total asset and liabilities 28
8 Trends of income statement 29
9 Interest inflow and outflow 30
10 Comparisons operating activities cash flow 31
11 Comparisons investing activities cash flow 32
12 Comparisons financial activities cash flow 33
List of Tables
Table No Contents Page No
1 Core values 7-8
2 Current ratio 16
3 Cost to income ratio 17
4 Total asset turnover 18
5 Debt ratio 18
6 Equity ratio 19
7 Net profit margin 20
8 Return on asset 21
9 Return on equity 21
10 Earnings per share 22
11 Summary of ratio 23
12 Total asset and liabilities 28
13 Summary of income statement 29
14 Interest inflow and outflow 30
15 Operating activities cash flows 31
16 Investing activities cash flows 32
17 Financial activities cash flows 33
