LETTER OF TRANSMITTAL

11 August, 2015
To,
Leo Vashkor Dewri
Senior Lecturer
Department of Business Administration
East West University.
Subject: Submission of report on Ratio Analysis of NCC and UCB Bank.
Dear Sir,
With due respect, I would like to submit to you the Report on NCC and UCB Bank.
I found the research program very interesting which was assigned on me as a requirement for
the Management of Commercial Bank course. I am pretty much optimistic that the preparation
of this Report would enrich my practical knowledge.
I have devoted my best effort to make the report an informative one. I shall remain ever
grateful to you for rendering me the opportunity of working on such an interesting field. If you
need any clarification regarding this report, I shall be available for this.
Yours sincerely
Sraboni Rahman
Department of Business Administration
East West University

pg. 1

Acknowledgement
At the very beginning, all praises for almighty Allah for enabling me to complete the report

Products offering by NCC bank:

Loan Products

Personal Loan
Education Loan
Car Loan Scheme
House Building Financing
House Repairing & Renovation Loan
Home Improvement Loan
Consumer Finance Scheme
Deposit Products

Current A/C
Savings Bank Deposit A/C
Special Notice deposit A/C
Special Savings Scheme
Special Deposit Scheme
Premium Term Deposit A/C
Instant Earnings Term Deposit
Money Double Program
Money Triple Program
Youngster Account
Youngster Maximums Account
Youngster Moneyplant Scheme
SME Banking

Small Business Loan

Lease Finance
Working Capital Loan
Festival Business Loan
Festival Personal Loan
Cards

Credit Cards
Debit cards
Remittance products

Wage Earners Welfare Deposit Pension Scheme

Overseas Employment Loan Scheme
Special Interest rate on Deposit and Loan

pg. 2

pg. 3

ROA (%)

2010

2011

2012

2013

2014

NCC

2.84

2.12

1.14

0.92

1.16

UCB

1.98

1.97

0.84

1.41

1.49

ROA:

pg. 4

8
7
6
5
NCC

UCB
3
2
1
0
2010

2011

2012

2013

2014

An indicator of how profitable a company is relative to its total assets. ROA gives an
idea as to how efficient management is at using its assets to generate earnings.
Calculated by dividing a company's annual earnings by its total assets, ROA is
displayed as a percentage. Sometimes this is referred to as "return on investment".
Here in NCC in 2010 ROA was 2.84% & then it increases to 2.12% in 2011.After that
it decreases gradually in 2012, 2013 &2014 according to 1.14%, 0.92% & 1.16%.
according to graph NCC is in better position rather than UCB.

ROE:

ROE (%)
NCC
UCB

2010
25.38
32.28

2011
18.98
24.77

2012
11.81
9.29

2013
8.96
15.85

2014
10.87
17.07

pg. 5

35
30
25
20
NCC
UCB

15
10
5
0
2010

2011

2012

2013

2014

The amount of net income returned as a percentage of shareholders equity. Return

on equity measures a corporation's profitability by revealing how much profit a
company generates with the money shareholders have invested. ". Here, in 2010
ROE was 25.38%. After that it decreases gradually. According to graph UCB is in
better position on ROE.

Non-performing loan ratio:

Nonperform
ing loan
ratio (%)
NCC
UCB

2010

2011

2012

2013

2014

2.27
1.20

2.68
1.79

5.51
3.69

5.56
4.03

7.49
4.62

pg. 6

8
7
6
5
4
3
2
1
0

NCC
UCB

2010

2011

2012

2013

2014

In both banks, it increases year by year. And UCB has low percentage than NCC. So, UCB has
better position here.
Earning per share:
EPS (%)
NCC
UCB

2010
5.33
2.61

2011
3.70
3.52

2012
2.06
1.90

2013
1.49
3.66

2014
1.87
4.39

6
5
4
NCC

UCB

2
1
0
2010

2011

2012

2013

2014

In NCC EPS is in decreasing pattern and in UCB it is in increasing position. So , earning of UCB is
higher here.

Dividend per share:

Dividend
per share
(%)
NCC
UCB

2010

2011

2012

2013

2014

32%
25%

17%
27%

10%
10%

5%
20%

10%
30%

pg. 7

35%
30%
25%
20%

NCC

15%

UCB

10%
5%
0%
2010

2011

2012

2013

2014

Dividend paying percentage is much higher in UCB bank.

Capital Adequacy Ratio:

Capital
Adequacy
Ratio (%)
NCC
UCB

2010

2011

2012

2013

2014

10.91%
9%

11.26%
10.87%

11.47%
10.37%

11.87%
11.53%

13.47%
10.56%

16.00%
14.00%
12.00%
10.00%
NCC

8.00%

UCB

6.00%
4.00%
2.00%
0.00%
2010

2011

2012

2013

2014

CAR is higher in NCC bank. So it is in better position in adequating capital.

Net Interest margin:

NIM (%)

2010

2011

2012

2013

2014

pg. 8

NCC
UCB

4.38
2.95

4.31
3.05

3.89
3.19

2.93
3.13

5
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0

2.56
2.98

NCC
UCB

2010

2011

2012

2013

2014

Interest margin was fluctuated over the years. In last year it was higher in UCB.
Net Operating Margin:
NOM (%)
NCC
UCB

2010
10.05
6.04

2011
11.26
5.50

2012
10.41
4.90

2013
10.80
5.48

2014
9.43
5.78

12
10
8
NCC

UCB

4
2
0
2010

2011

2012

2013

2014

NCC had higher NOM in last five years than UCB. So, NCC was in better position in managing operating
revenues.
Earning power ratio:
Earning
power Ratio
(%)
NCC

2010

2011

2012

2013

2014

12.91%

8.21%

8.73%

8.80%

5.99%

pg. 9

UCB

3.64%

3.54%

2.78%

3.15%

3.28%

14.00%
12.00%
10.00%
8.00%

NCC

6.00%

UCB

4.00%
2.00%
0.00%
2010

2011

2012

2013

2014

NCC was in better position than UCB in earning power ratio.

Net charge off:
Net charge
off
(%)

NCC

UCB

2010

2011

2012

2013

2014

(63230.14
1425.28 +
835.65)/
63230.14

(72733.54
1938.30 +
547.95)/
72733.54

(79948.22
4369.02 +
1274.07)/
79948.22

(88167.20
4862.41 +
1371.94)/
88167.20

(90920.77
6735.52 +
1246.32)/
90920.77

= 99.067%

=98.088%

=96.13%

=96.04%

=93.96%

(93561
1673.78 +
678.56)/93
561

(115506
2786.43 +
1174.35)/115
506

(136072
7678.56 +
1367.89)/136
072

(148665
3766.9 +
1685.65)/148
665

(174146
6169 +
1548.29)/174
146

= 98.94%

= 98.60%

= 95.36%

= 98.60%

= 97.37%

pg. 10

1
0.99
0.98
0.97
0.96

NCC

0.95

UCB

0.94
0.93
0.92
0.91
2010

2011

2012

2013

2014

UCB had the higher net charge off than NCC bank. So, NCC was in better position in last 5 years.

Credit Deposit Ratio:

Credit
deposit
Ratio
(%)
NCC
UCB

2010

2011

2012

2013

2014

93.04
82.75

83
82.81

77
79.79

83
79.81

77.41
78.92

100
80
60

NCC

40

UCB

20
0
2010

2011

2012

2013

2014

Both banks were almost same here.

pg. 11

Operating efficiency ratio:

Operatin
g
Efficienc
y Ratio
(%)
NCC
UCB

2010

2011

2012

2013

2014

59.64%
55.74

69.73%
65.74

74.2%
53.38

29.52%
73.98

30.90%
74.43

80.00%
70.00%
60.00%
50.00%
40.00%

NCC

30.00%

UCB

20.00%
10.00%
0.00%
2010

2011

2012

2013

2014

UCB had better position in managing operating efficiency.

Cost income ratio:
Cost income
Ratio (%)
NCC
UCB

2010

2011

2012

2013

2014

54.65
39.74

70
35.74

72.05
43.38

76.61
42.52

76.39
42.67

100
80
60

NCC

40

UCB

20
0
2010

2011

2012

2013

2014

NCC had larger cost income ration in last 5 years than UCB. So, NCC was in better position.

pg. 12

Price earning ratio:

Price
Earning
Ratio (%)
NCC
UCB

2010

2011

2012

2013

2014

12.91
30.23

8.21
10.84

8.73
12.42

8.80
6.85

5.99
6.68

35
30
25
20

NCC

15

UCB

10
5
0
2010

2011

2012

2013

2014

As UCB had lower earning here, so NCC was in better position.

Net Asset Value:
Net asset value
(%)
NCC

201
0
20.7
9
26.8
6

UCB

2011

2012

2013

2014

19.50

17.46

17.34

17.87

24.95

22.06

21.7

20.32

30
25
20
15

NCC

10

UCB

5
0
2010

2011

2012

2013

2014

Net Asset value of UCB was much higher in last 5 years rather than NCC. So, UCB was in good position.

pg. 13

Equity multiplier:
Equity
multiplier
(%)
NCC
UCB

2010

2011

2012

2013

2014

10.80
16.61

10.91
10.58

12.36
11.42

11.32
11.04

11.73
11.83

18
16
14
12
10
8
6
4
2
0

NCC
UCB

2010

2011

2012

2013

2014

The ratio of a companys total assets to its stockholders equity . The equity
multiplier is a measurement of a companys financial leverage. Companies finance
the purchase of assets either through equity or debt, so a high equity multiplier
indicates that a larger portion of asset financing is being done through debt. The
multiplier is a variation of the debt ratio. Last both banks almost in same position.

Number of shares:
No. of
shares
(of TK 10
each)
NCC
UCB

2010

2011

2012

2013

2014

450.13
291.00

594.16
727.49

695.17
836.61

764.69
836.61

802.92
836.61

pg. 14

1000
800
600

NCC

400

UCB

200
0
2010

2011

2012

2013

2014

Employee productivity ratio:

Employee
productivity
ratio (%)
NCC

UCB

2010

2011

2012

2013

2014

10157.99/16
22
= 6.26

13923.05/17
16
= 8.11

15606.88/18
11
= 8.62

16227.89/21
92
= 7.40

15871.73/22
77
= 6.97

7853.88/273
8
= 2.86

9294.37/298
2
= 3.12

10177.66/33
74
= 3.02

12398.58/34
45
= 3.60

15209.39/36
79
= 4.13

10
9
8
7
6
5
4
3
2
1
0

NCC

2010

2011

UCB

2012

2013

2014

NCCs employees were more productive in last five years.

Market value per share:

Market

2010

2011

2012

2013

2014

pg. 15

value per
share
NCC
UCB

68.80
226.70

30.40
43.90

18.20
23.60

13.10
25.10

11.20
29.30

250
200
150

NCC

100

UCB

50
0
2010

2011

2012

2013

2014

Market value of per share in UCB bank was higher in last 5 years than NCC bank. UCB had the better
position here.
Net loans to deposit:
Net loans to
deposit (%)
NCC
UCB

2010

2011

2012

2013

2014

93.04
82.75

89.65
82.81

82.49
79.79

89.75
80.40

86.01
82.51

95
90
85
NCC
UCB

80
75
70
2010

2011

2012

2013

2014

pg. 16

Loan amount was higher in NCC, so NCC had better position.

Other Ratios could not be found because of lack of information

Conclusion
NCC Bank is one of the major banks of our country. They are the leading bank in this
field. After analyzing various ratios regarding NCC Bank throughout the paper it is
found that it is doing relatively well. It should provide a little more concentration in
profitability. Focusing on the ratio analysis it can be said that it has quite
competitive as well as better position in the banking industry.

pg. 17