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1. Financial Performance
Analysis of Conventional and
Non – Conventional Banks

2. Conventional Bank Non – Conventional Bank

3. Table of Contents
Contents
1. Rational of the study 7. Company Overview
2. Statement of the problem 8. Literature review
3. Objective of the study 9. Methodology
4. Scope of the study 10. Financial Analysis
5. Limitation of the study 11. Recommendation
6. Difference between conventional
and Non conventional bank
12. Conclusion

4. Rational of the study
We are proposing this study to analyzing the
financial performance of conventional and non
conventional bank.
As a student we can learn how to do the financial
performance analysis of any organization and as a
customer the reason behind to choosing a bank
between these two banks.

5. Rational of the study
In financial analysis process ratio analysis is the most
dominant and logical structure to help business
related stakeholder
 These ratios not only help to decision making
process also emphasized on risk avoiding and profit
raising related factors

6. Statement of the problem
What are the performances showing us those two
banks?
What are the basic balance sheet accounts and
income statement components and understand how
they relate to each other.
Why the performance characteristics of small and
large banks Different

7. Statement of the problem
Is there any significant difference between 2014-15
Return on Asset and Financial performance?
Whether the enterprise’s financial condition is
basically sound?

8. Objective of the Study
General Objective
The general or main objective of the report is to see the
financial performance of one bank and Al – Arafah
Islamic bank and to know overall Banks financial
performance condition

9. Objective of the Study
Specific Objective
• To Discussed the Financial ratio measurement and
analysis.
• To measure profitability, liquidity and credit
management of two banks
• To show the financial stability analysis consists of
(profitability and liquidity).

10. Scope of the study
The study intends to analyze the financial
performance of selected two Banks in Bangladesh
For this purpose, it is planned to select the
conventional and non conventional Banks in
Bangladesh giving representation to geographical
area, size of the Banks, Financial Performance.

11. Scope of the study
The study covers the assessment and evaluation of
financial performance of both conventional and non
conventional Banks
The study will be based on the financial performance
of the selected two banks during the last 2 years
(2014-15) which enables to identify the trends in
their performance

12. Limitations
The study depends purely upon the accuracy,
reliability and quality of the secondary data source.
Shorter time frame may be restricted area of study.
Confidential data of a company.
Technological problem.
Lack of in depth knowledge and analytical ability for
writing such report

13. Conventional vs Non conventional
Bank
Shariah
Zakat.
Mudhrabha concept :Share of profit and loss
Interest
Profit
Al-wadiah

14. Company Overview
One bank
ONE Bank Limited was incorporated in May, 1999 With
the Registrar of Joint Stock Companies under The
Companies Act. 1994, as a commercial bank in the private
sector

15. Company Overview
Al – Arafah Bank
Al – Arafah Islami Bank Ltd was established as a privet
limited company on 18 June 1995. The authorized capital
of this bank is Tk.15000.00 million and the paid up capital
is Tk.9469.58 million as on 31.12.2015.

16. Literature Review
• The rate of return has always an important role in
explaining the saving behavior of an individual. In fact that
is considered as the basic of financial activities. That’s
why different financial institutions offering different return
rates on their different depository schemes.
• Gafoor, 2001
• Kaleem and Md Isa, 2003

17. Methodology
• We have used secondary sources of information
• ONE Bank’s and Al – Arafah Islamic Bank’s Website
• Annual report of 2014 and 2015
• Internet
• Materials provided in class
• Processing of Data through MS Excel

18. Financial Analysis

19. Financial Analysis

20. Financial Analysis

21. Financial Analysis

22. Financial Analysis

23. Recommendation
•EPS: Al – Arafah bank has a low performance in earning
per share then one bank. Al – Arafah bank should try to
invest in different profitable sectors so that they can
increase their earning per share.
•ROA: From the above data we can see that one has a
good ROA then Al-Arafah bank. So, Al – Arafah bank
should use their assets in more efficient way so that it
can generate for profit.

24. Recommendation
•Banks should increase their efficiency in expense
management.
•The banks should invest or lend money on higher
profitable and securable public or organization for
increase their profitability.
•The Banks should keep and maintain its liquid money
more rationally for meat up their current and short term
obligation.

25. Conclusion
Through the performance analysis between two banks
we find that one bank performance is much better then
Al – Arafah Islami bank. At the end we can say that
people of Bangladesh prefer conventional banks more
rather than non conventional banks.