Financial performance analysis of Midland Bank PLC & Eastern Bank PLC

Abstract

The topic of the internship report is “Financial performance analysis” of Midland Bank PLC and Eastern Bank PLC through CAMELS rating. This report contains three chapters. The first chapter covers the person’s information who is the MBA intern of BRAC University. The second chapter talks about the introductory overview of Midland Bank PLC along with its practices of Management, Marketing, Financial performance, Information system, etc. and finally competitive analysis through SWOT and Porter’s 5 forces model. The prime focusing chapter of this study is third chapter. This section evaluates two bank’s financial performances through CAMELS rating for the last three years. Various components under CAMELS are used in the analysis such as capital adequacy, asset quality, management efficiency, return on assets (ROA) under earnings, advance to deposit (L1) under liquidity and finally sensitivity. We execute scoring those CAMELS rating components of both banks from 1 to 5. When we multiply the scores and weights of CAMELS ratings, we find weighted averages. Finally, composite range of CAMELS ratings are evaluated based on the weighted average values. According to the analysis, it has been noticed that EBL has slightly performed better than Midland in last three years. The whole analysis is executed using annual reports of Midland and EBL.