Group Bank

Particulars 2013 2012Change

%2013 2012

Change %

Performance During the YearNet Interest Income 4,956 4,886 1.45% 4,892 4,814 1.61%

Non Interest Income 4,626 3,934 17.59% 4,578 3,913 16.99%

Operating Income 9,582 8,819 8.65% 9,469 8,727 8.51%

Operating Profi t 5,827 5,614 3.80% 5,788 5,464 5.94%

Profi t After Tax 2,535 2,393 5.95% 2,568 2,275 12.87%

Year End Financial PositionLoan 103,331 96,894 6.64% 102,910 96,720 6.40%

Investments 26,018 21,655 20.15% 25,904 21,655 19.62%

Deposits 117,037 91,435 28.00% 117,102 91,781 27.59%

Shareholders equity 18,559 17,250 7.59% 18,450 17,109 7.84%

Total Assets 158,163 147,044 7.56% 157,882 147,148 7.29%

Information Per Ordinary ShareEarnings per share (weighted average) 4.15 3.91 6.14% 4.20 3.72 12.90%

Dividend (%) 20% 20% 0.00% 20% 20% 0.00%

Price earning ratio (times) 7.01 8.11 -13.51% 6.93 8.52 -18.66%

Net asset value per share (BDT) 30.37 28.22 7.59% 30.19 27.99 7.84%

Market price per share (BDT) 29.10 31.70 -8.20% 29.10 31.70 -8.20%

Ratios (%)Capital adequacy ratio (as per Basel II) 12.01% 12.18% -1.40% 11.95% 12.05% -0.85%

Non performing loans 3.58% 3.17% 12.90% 3.59% 3.17% 13.16%

Cost to income ratio 39.18% 37.52% 4.44% 38.87% 37.39% 3.97%

Phone Banking (24X7 Contact Center): Just a call away to 16230

Internet Banking: log in from PC or mobile from anywhere in the world

SMS Banking: Just an SMS away to 6969

Branch

71ATM

175Bills pay

42Priority Center

11SME Center

55Student Center

3

Reaching Closer: Channel Standing 2013

BDT Million

Financial Highlights

EASTERN BANK LIMITED A N N U A L R E P O R T 2 0 1 3

PARTICULARS 2013 2012 2011 2010 2009

Balance Sheet Metric

Authorised capital 12,000 12,000 12,000 12,000 3,300

Paid up capital 6,112 6,112 4,527 2,921 2,496

Shareholders equity 18,450 17,109 14,407 12,084 8,429

Deposits 117,102 91,781 75,536 56,425 49,190

Borrowing 14,080 31,158 21,652 9,257 8,835

Loans and advances 102,910 96,720 81,774 58,607 47,668

Credit to deposit ratio (Gross) 87.88% 105.38% 108.26% 103.87% 96.91%

Credit to deposit ratio - Gross (excluding OBU loans) 79.66% 95.36% 99.86% 95.09% 93.78%

Liabilities to shareholders equity (times) 7.56 7.60 7.16 5.79 7.29

Investments 25,904 21,655 16,910 9,827 8,806

Fixed assets 6,897 5,970 4,453 3,614 1,804

Interest bearing assets 133,057 119,334 104,572 71,759 62,125

Total assets 157,882 147,148 117,601 82,098 69,871

Income Statement Metric

Net interest income (excluding investment income) 4,892 4,814 3,314 2,973 2,317

Non-interest income 4,578 3,913 4,476 3,487 2,313

Investment income 2,071 1,495 1,970 2,050 955

Non investment income (exchange, fees & charges) 2,507 2,418 2,506 1,437 1,358

Operating income 9,469 8,727 7,791 6,461 4,630

Operating profi t (profi t before provision and tax) 5,788 5,464 5,107 4,410 2,980

Provision for loans, investment and other assets 953 1,244 978 417 280

Profi t before tax 4,836 4,220 4,129 3,992 2,701

Profi t after tax (PAT) 2,568 2,275 2,521 2,425 1,455

Capital Metric (As per Basel II)

Risk weighted assets (RWA) 140,279 129,812 130,351 104,440 73,316

Core capital (Tier 1) 13,245 12,232 10,199 8,375 6,441

Supplementary capital (Tier 2) 3,519 3,414 3,071 2,912 1,875

Total capital / Regulatory capital (Tier 1 and 2) 16,764 15,646 13,270 11,287 8,317

Capital adequacy ratio-solo (regulatory capital/RWA) 11.95% 12.05% 10.18% 10.81% 11.34%

Core capital (Tier 1) to RWA 9.44% 9.42% 7.82% 8.02% 8.79%

RWA to total assets 88.85% 88.22% 110.84% 127.21% 104.93%

Credit Quality

Non performing/classifi ed loans (NPLs) 3,697 3,071 1,561 1,169 1,172

Specifi c provision 1,929 1,387 866 611 756

General provision 1,644 1,563 1,541 1,107 876

NPL to total loans and advance 3.59% 3.17% 1.91% 1.99% 2.46%

Trade Business Metric

Export 74,003 67,518 58,589 39,633 34,548

Import (LC) 112,977 103,171 100,639 70,665 54,370

Guarantee 6,307 6,528 4,497 2,727 1,319

Five-Year Progression of EBL

BDT Million

57

stakeholders information

PARTICULARS 2013 2012 2011 2010 2009

Effi ciency / Productivity Ratios

Return on average equity (ROE) 14.44% 14.44% 19.03% 23.64% 22.10%

Return on average assets (ROA) 1.68% 1.72% 2.52% 3.19% 2.34%

Cost to income ratio 38.87% 37.39% 34.44% 32.10% 35.62%

Yield on average loan 13.67% 13.79% 13.40% 12.75% 13.69%

Cost of average deposit 8.24% 9.11% 8.40% 6.74% 8.55%

Net interest margin ratio 3.88% 4.30% 3.76% 4.44% 4.25%

Statutory liquidity reserve ratio 29.87% 22.93% 24.98% 19.93% 23.17%

Cash reserve ratio 6.10% 5.98% 6.00% 5.84% 5.51%

Operating profi t per employee 3.86 4.07 4.21 4.53 3.39

Operating profi t per branch 81.52 81.55 86.57 89.99 76.41

Share Distribution Metric

Earnings per share (EPS) in BDT 4.20 3.72 4.12 5.36 5.00

Operating profi t per share in BDT 9.47 8.94 8.36 15.10 10.24

Price earning ratio (times) 6.93 8.52 15.97 24.16 12.89

Market price per share (BDT) as on close of the year at DSE 29.10 31.70 65.80 129.40 64.43

NAV (book value) per share in BDT 30.19 27.99 31.82 41.37 33.76

Dividend cover ratio: (EPS/DPS) 2.10 1.86 1.18 0.97 1.35

Dividend (%) 20 20 35 55 37

Cash (%) (proposed for 2013) 20 20 - - 20

Stock (%) - - 35 55 17

Market capitalization (at close of year) 17,785 19,374 29,789 37,795 16,083

Market price to net assets ratio (times) 0.96 1.13 2.07 3.13 1.91

Other Information (Actual Figure)

No of branches 71 67 59 49 39

No of employees (regular) 1,498 1,343 1,214 973 878

No of deposit accounts 352,627 305,363 218,239 194,351 176,080

No of loan accounts 178,896 132,238 88,375 65,656 35,125

No of foreign correspondents 715 663 660 644 665

Number of ATM 175 160 125 74 57

EBL 365 161 147 104 71 57

SME center 55 50 40 33 23

No of bills pay machine 42 42 27 10 8

No of priority center 11 8 7 6 6

BDT Million

EASTERN BANK LIMITED A N N U A L R E P O R T 2 0 1 3

Market Price Information

Month

DSE CSE Total Volume on DSE & CSEMonth High Month Low

Total Volume

Month High Month LowTotal

Volume

Jan-13 32.60 30.90 3,051,800 32.50 31.20 190,898 3,242,698

Feb-13 33.50 31.80 4,061,400 33.70 31.40 347,980 4,409,380

Mar-13 33.10 25.40 4,695,200 32.60 26.80 425,662 5,120,862

Apr-13 27.40 24.90 2,001,800 27.20 24.60 326,782 2,328,582

May-13 28.70 26.70 2,350,800 28.10 26.40 874,846 3,225,646

Jun-13 27.90 26.40 4,234,000 28.00 26.50 574,529 4,808,529

Jul-13 27.50 26.10 5,632,200 27.50 25.80 191,259 5,823,459

Aug-13 27.00 25.50 2,996,400 26.80 25.30 106,739 3,103,139

Sep-13 26.80 25.50 2,974,200 26.50 25.20 191,992 3,166,192

Oct-13 27.20 26.00 2,949,000 27.00 25.20 260,855 3,209,855

Nov-13 32.40 26.80 4,844,800 30.90 26.00 425,970 5,270,770

Dec-13 29.40 27.50 1,949,600 29.00 26.70 105,020 2,054,620

DSE Price Volume Chart of EBL Share: 2013

59

stakeholders information

Vital GraphsKey Performance Indicators: Per Share

EASTERN BANK LIMITED A N N U A L R E P O R T 2 0 1 3

Vital GraphsYear-end Financial Position 2013

61

stakeholders information

Vital GraphsPerformance during the year 2013

EASTERN BANK LIMITED A N N U A L R E P O R T 2 0 1 3

Value added is the wealth accretion made by Eastern Bank Limited through providing banking and other fi nancial services in 2013 for it’s employees, directors, government and shareholders in the form of salaries & allowances, remuneration, duties & taxes, net profi t after tax respectively and also indicates value of use of fi xed assets through depreciation.

Value Added for the year ended 31 December

Particulars2013 2012

Taka Taka

Wealth creation:Revenue from Banking services 19,339,742,807 17,559,254,496

Less: Cost of services & supplies (11,302,397,778) (10,096,354,197)

8,037,345,029 7,462,900,299

Non-banking income 45,228,403 51,838,834

Provision for loans & other assets (952,509,071) (1,244,305,686)

Total wealth creation 7,130,064,362 6,270,433,448

Wealth distribution:Employees & Directors

Employees as salaries & allowances 1,963,508,938 1,750,682,613

Directors as remuneration & fees 19,158,517 17,711,880

Government 2,348,830,401 2,027,720,346

Corporate tax 2,267,883,136 1,944,513,381

Service tax/ Value added tax 79,122,032 81,906,916

Municipalties/ local taxes 889,786 533,669

Excise duties 935,446 766,380

Shareholders

Dividend to shareholders 1,222,359,570 1,222,359,570

Retention for future business growth

Retained earnings 1,345,504,261 1,052,741,140

Depreciation and amortization 230,702,675 199,217,899

Total Wealth Distribution 7,130,064,362 6,270,433,448

Value Added Statement

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stakeholders information

Economic Value Added StatementEconomic Value Added (EVA) is the measure of fi nancial performance of an organization. It is based on the principle that since a company’s management employs equity capital to earn a profi t, it must pay for the use of this equity capital. This management tool is useful to shareholders in particular and other stakeholders in general to take decision for increasing wealth.

EVA is equal to Profi t after Tax (PAT) plus the provision for loans & other assets less written off during the year minus cost of equity where cost of equity is the opportunity cost that the shareholders forego. This cost of equity is calculated considering the risk free rate based on weighted average rate of 10 years treasury bond issued by Bangladesh Government plus 2% risk premium. EBL management is deeply concerned for maximization of wealth of its shareholders and other equity providers.

EVA statement for the year ended 31 December

Figures in BDT

Particulars 2013 2012

Shareholders equity 18,450,498,173 17,109,339,472

Add: Accumulated provision for loans & advances and other assets 4,481,469,159 3,695,777,983

Capital employed 22,931,967,333 20,805,117,455

Average capital employed / shareholders' equity 21,868,542,394 18,950,598,168

Earnings:

Profi t after tax 2,567,863,831 2,275,100,710

Add: Provision for loans & advances and other assets charged during the year 952,509,071 1,244,305,685

Less: Written off loans during the year 322,366,338 385,918,914

Net earnings 3,198,006,564 3,133,487,481

Cost of equity:

Average cost of equity (based on weighted average rate of 10 years treasury bond issued by the Bangladesh Government) Plus 2% risk premium

14.16% 13.80%

Capital charge (cost of average equity) 3,096,585,603 2,615,182,547

Economic value added 101,420,961 518,304,934

EASTERN BANK LIMITED A N N U A L R E P O R T 2 0 1 3

Market Value Added (MVA) StatementMarket value added statement refl ects the company’s performance evaluated by the market through the share price. This amount is derived from the difference between market capitalization and book value of the shares outstanding. It signifi es the enhancement of fi nancial solvency as perceived by the market.

Market Value Added statement as at 31 December

Particulars 2013 2012

Face value per share (BDT) 10.00 10.00

Market value per share (BDT) 29.10 31.70

Number of shares outstanding 611,179,785 611,179,785

Total market capitalization (BDT million) 17,785.33 19,374.40

Book value of paid up capital (BDT million) 6,111.80 6,111.80

Market value added (BDT million) 11,673.53 13,262.60

Financial Goals and Performance (Bank)

Particulars Goals 2014 Goals 2013 Actual 2013 Actual 2012

Capital adequacy ratio (CAR) % 11% Plus 11% Plus 11.95% 12.05%

Return on average equity (ROE) % 20% Plus 20% Plus 14.44% 14.44%

Return on average assets (ROA) % 2.5% plus 2.5% plus 1.68% 1.72%

Cost to income ratio (%) Less than 35% Less than 35% 38.87% 37.39%

NPL to total loans and advance (%) Less than 3% Less than 3% 3.59% 3.17%

Weighted average credit risk grade (Number) 4.50 4.50 4.93 4.83

Deposits (BDT million) 126,085 109,524 117,102 91,781

Loans and advances (BDT million) 124,663 107,873 102,910 96,720

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stakeholders information