Financial performance analysis of Habib Bank Limited and the effect of dollar crisis on the profitability of the bank

Abstract

In this internship report, I have described my contribution to Habib Bank Limited and what difficulties I have faced in the respective bank. The financial statement analysis of the bank is also done through different ratio analysis such as efficiency ratio, return on assets, return on equity, credit deposit ratio. In this study, the reason for the shortage of dollar is marked as the Covid pandemic, Ukraine Russia war, increasing fuel price, import export deficit etc. One of the main consequences of the dollar crisis is marked as the fluctuations of exchange rate. So, this study intends to find out that how the commercial banks profitability is effected by the currency fluctuations in exchange rate. It also showed the up-warding trends of foreign exchange rate in the past 5 years. The correlation coefficient between foreign exchange rate and net profit is measured to show the relationship between foreign exchange rate and net profit. The value of r is 0.68 which indicates positive and moderate correlation between the variables.