Muslim Commercial Bank (Internship) 2 Chapter -8

INTERPRETATION:

The return on equity has decreased to 33.61% in 2007 as compared to 34.05% in 2006. The return on equity replicates the net profit margin trends with the Bank registering good performance because of better efficiency. Due to increase in shares the ratio decreases in 2006.

8.1.5 RETURN ON ASSETS:

Return on Assets         =          Profit After Taxation x 100

                                                            Total Assets

Return on Assets (2007) = 15265562 x 100 = 3.72%

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Return on Assets (2006) = 12142398 x 100 = 3.54%

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INTERPRETATION:

The return on assets has improved to 3.72% in 2007 as compared to 3.54% in 2006. This indicates the success of management to utilize the assets of the Bank efficiently.

8.1.6 LOAN-DEPOSIT RATIO:

Loan Deposit Ratio     =          Loans x 100

                                                Deposits

Loan Deposit Ratio (2007) = 218960598 x 100 = 74.96%

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Loan Deposit Ratio (2006) = 198239155 x 100 =76.99%

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