Presentation

On
The Comparative Analysis On
Operating Efficiency Of
Brac Bank Limited and United
Commercial Bank Limited
Submitted by:
Mehedi Hassan Rony
Id: 51326053
MD. Mahfuzul Haque
Id:51222063
Kaoser Ahammed Lemon Id: 51326020

Overview of Banks
BRAC Bank
BRAC Bank was founded on 4 July 2001 as a private
commercial bank focused on Small and Medium
Enterprises (SME). BRAC Bank was founded to reach the
large number of unbanked people which were not
covered by traditional bank.

UCBL
With a firm commitment of the economic and social
development of Bangladesh, United Commercial Bank
(UCB) started its journey in mid 1983 and has since been
able to establish itself as one of the largest first generation
banks in the country. With a vast network of 148 branches
the Bank has already made a distinct mark in the realm of
Private Sector Banking through personalized service,
innovative practices, dynamic approach and efficient
Management.

Total Operating Revenue(Income):

Total Operating Income
2500

2059

2000
1500
taka(in crore)

1000

1333
519

1571

1531
785

1073
929 1017

1239

UCBL
BRAC

500
0

2009

2010 2011
year

2012

2013

We see that BRAC has greater operating income than UCBL. But
fact is that UCBL has almost consistent growing over the years
but BRAC is very fluctuations as 2010 to 2012. And SBL growth
rate is almost 12%(Avg.).

Total operating expenses:

Total Operating Expenses
1812

2000
1800
1600

1259

1400
1200
taka(in crore)

1034

961

UCBL

1000
600
400

BRAC

629

800
206

312

332

441

527

200
0

2009

2010

2011
year

2012

2013

Total

Asset:
Total Asset
2500

2072
1686

2000
1500
taka(in crore)

904945

1298
1191

2263

1736

1332
1030

1000

UCBL
BRAC

500
0

2009

2010

2011
year

2012

2013

Here we see that Total asset of UCBL is higher than BRAC

throughout the year 2009 to 2013 but growth rate has
slowed down for BRAC from year 2012 to 2013. Whereas,
UCBL is having consistent growth.

Total

Equity:
Total Equity
2500

2050

2000

1596

1500
taka(in crore)

1000

815
570

781841

2009

2010

960

1816
UCBL

1015

BRAC
502

500
0

2011
year

2012

2013

We see that both bank started from almost the same point
in 2009 but the total equity of UCBL has increased more
than BRAC over the year depicting more operating
excellence through the years.

Operating efficiency ratio

Opretaing Efficiency Ratio
75.00%

80.00%
70.00%

60.40%

60.00%

67.00%
54.70%
46.63%

50.00%

32.96%

40.00%
30.00%

48.02%
37.62%

39.12%

UCBL
BRAC

20.43%

20.00%
10.00%
0.00%

2009

2010

2011

2012

2013

year

Here we see BRAC started with 60.40% and have been able to slow the
expenses to 54% in year 2011which expresses their operating efficiency.
But UCBL although was in advantageous position with only 20.43% in year
2009 and they made it 46% in the following year. But it increased 39.12%
in 2013 and may be it will increase further as per the trend

Return

on Asset:
Return On Asses
17.56%

18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%

14.09%

12.84%
8.00%

9.00%

UCBL

5.70%

6.04%

5.51%

4.90%

5.40%

2009

2010

2011

2012

2013

BRAC

year

As we see that return on asset for BRAC is higher than

UCBL. But because of the political turmoil BRAC has been
affected highly than UCBL, because it is having negative
growth after 2010 while BRAC is recovering after 2012

Return

on equity:
Return On Equity
27.78%

30.00%

22.22%

25.00%
20.00%

16.80%
16.03%

14.00%
13.00%

15.00%

16.00%

18.00%
14.09%

UCBL
BRAC

8.70%

10.00%
5.00%
0.00%

2009

2010

2011
year

2012

2013

Return on equity was almost equal for both the bank in year
2009.After that they are having negative growth depicting a very
negative trend. And BRAC has been able to make it after 2012.

Employee

Productivity Ratio:

Employee Productivity Ratio:

0.3
0.25
0.2

UCBL

0.15

BRAC

0.1
0.05
0

2009

2010

2011

2012

2013

year

In the consideration of maximum utilization of the

productivity of the employee, UCBL was outstanding in year
2009-11.

THANK YOU