Presentation slides on the Impact of Dividend policy on firm Performance

To My Presentation

Topic: “Impact of Dividend policy on

firm Performance”DIVIDEND POLICY

FIRM PERFORMANCE

Submitted By-Neloy Kumar RoyID NO:2012010000297Batch: 30th

Major: FinanceSoutheast University, Bangladesh

Submitted To-Syed Abdulla Al Mamun,Ph.D., ACMA

Associate Professor & Director

School of Business StudiesSoutheast University

The Topics will be cover:Overview of the organization.Objectives of the study.Activities of General Banking.Activities of Loans and Advanced Department.Activities of Foreign Exchange Department.Dividend Policy.Impact of NCC Dividend on performance.Recommendations.

Overview of the organization:

NCC Bank started its journey as an investment company back in 1985.

Converted into a fully fledged private commercial Bank in 1993 with the paid up capital of Tk. 39.00 core.

At end of 2015 it is operating its activity through 104 branches with 22 authorized dealer branches all over the Bangladesh.

NCCBL started its DSE & CSE journey as a listed bank from 2000.

Objectives of the study:

Primary Objectives:• To merge with the practical

working knowledge with Text book knowledge.

• To know the working condition and how employees make them fit with the corporate culture.

Secondary Objectives:• To know how the dividend

policy make impact on firm performance.

• Knowing about the practice of Banking in the Modern age.

• To have an idea of the existing systems of all department that practice by the NCCBL.

Functions of NCC Bank-

• Key functions of NCCBL are done through the department wise.

Loans and Advanced Department

General Banking Department

Foreign Exchange Department

Activities through GB Department:

General Banking

Current A/C:

Savings Bank Deposit A/C:

Fixed deposit Account:

Special Savings

Scheme:

Activities through Loans and Advanced Department:

Personal Loans:

House Building Financing

Car Loan:

Education Loan:

Activities through Foreign Exchange Department:

Import section

,Export section

,

Foreign remittance section

Import Section:

L/C Letter of Credit:

Transmitting

the L/C

Amendment of L/C:

Payment of

L/C

Export section:

L/C

Advising of L / C:

Back to Back

Foreign L/C:

Back to Back Local

L / C:

Back to Back L / C:

Foreign Remittance Section

Green Banking by NCC Bank:

Green Branch

Sustainable

societyGreen Financ

e

Green Marke

ting

Awareness

Dividend Policy

• Dividends may be in form of cash dividends in which the company pays some cash amount per share to share holder, or it may be in terms of stock dividends, in which the company issues new stocks to existing shareholders in proportion of their existing shares.

Theoretical Framework

Theoretical Framework Agency theory: Signaling Theory: Bird in hand theory: Dividend Irrelevance

Theory:

Prior Study on Dividend policy Dividend Policy Ratios has

an impact on Financial Performance.

Dividend Policy Ratios and Financial Performance are significantly correlated.

All factors determine the Dividend Policy Ratios is significant

Conceptual frame work:

DEPENDEND VARIABLEINDIPENDEND VARIABLE

Impact of NCC Dividend on performance:

 Variables ROA EPS TQ

D/P Ratio 0.418766797 0.11325134 0.269361342

Correlation:

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

0.005

0.01

0.015

0.02

0.025

0.03

Series1

ROA

ROE

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

0.05

0.1

0.15

0.2

0.25

0.3

0.35

Series1

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140

10

20

30

40

50

60

70

80

Series1

TQ/Tobin's Q

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20140.84

0.86

0.88

0.9

0.92

0.94

0.96

Series1

EPS

Recommendations:

Providing cash Dividend can boost the overall performance.

Customer satisfactionProduct and services of the bank should be new,

competitive and innovative.Ensuring of fastest services for customersATM Booth should need to be all over the county

with 24/7 facility. Interest rate should be flexible to attract more clients.