Analysis of financial performance of banking sector in Bangladesh: an empirical study on selected listed banks

Abstract

This study aims to provide scheduled commercial banking companies in Bangladesh with a detailed financial performance assessment. The analysis is descriptive. This inductive study uses cross-sectional data financial analysis techniques to calculate, identify, and evaluate the financial performance of Bangladeshi publicly traded business banks. To measure internal, market-based, and economic performance, financial performance was divided into profitability ratios, market ratios, and value-added metrics. Bank rankings were based on financial results between 2016 and 2019, and Bank Asia Ltd. was found to be one of the leading banks. The research found that most banks showed weak economic efficiency, negative economic added value (EVA), and underestimated market price per share. The research involved in assessing financial performance in Bangladesh covered primarily ten publicly listed commercial banking firms and raised the question of results generalization. Most corporate societies also use financial performance reviews. Thus, the study results will provide valuable guidance for company creditors, bank management, and general investors. The financial performance evaluation can also be a valuable source of knowledge for policy-makers in Bangladesh.