...Lincoln University By Jiyun Xu Lincoln University, Canterbury, New Zealand 2011 I Abstract of a thesis submitted in partial fulfillment of the requirements for the Degree of M. C. M. An Empirical Analysis of China Big Four State-Owned Banks’ Performance: A Data Envelopment Analysis By Jiyun Xu Banks are becoming more international, disintermediation, concentrated and contestable in the financial market in providing services to foreign enterprises and individuals. There is also a shift from the traditional bank lending activities towards investment banking activities. Competition in financial markets encourages consolidation of banks and other financial institutions through mergers and acquisitions in order to increase contestability (Bikker & Bos, 2005). Hence, it is important to determine whether the bank is performing well under constant changes in the financial markets. This study examines the efficiency and performance of the Big four state-owned commercial bank...
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...the company 3 2. Industry Analysis 5 2.1 Porter’s Five Force Analysis 6 2.1.1 Bargaining Power of customers 6 2.1.2 Bargaining Power of Supplier 7 2.1.3 Risk of Entry by Potential competitors 7 2.1.4 Threat of substitutes 7 2.2 Competitor Analysis 8 3. Comparison of Financial Performance 10 3.1 Competitor Introduction 10 3.2 Ratio analysis 10 3.2.1 Net Interest Margin 11 3.2.2 Operating profit margin 12 3.2.3 Return on Equity ratio 13 3.2.4 Return on Capital Employed 14 3.2.5 Asset Turnover 15 3.2.6 Gearing ratio 16 3.2.7 Interest Cover 17 3.2.8 Earnings per Share Ratio 17 4 Analysis of the financing sources 18 4.1 Purchase of Ordinary share 19 4.2 Purchase of Debentures 20 5 Recommendation 21 6 Conclusion 22 References 23 Book references 23 Web references 24 1. Introduction With the increase of trading activities within the people the banks came to play with a major importance. The below report consist of an analysis of one of the major commercial banks in Sri Lanka, which is Bank of Ceylon , popularly known as BOC. The report analyses the role and function of Financial Information within the company and the importance of carrying out a competitor analysis. In doing so the first part of the report consists of an analysis of the company as well as the industry. This further extends to identifying and analysing the financial data and how its performance has been carried out over the past years considering...
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...------------------------------------------------- Chapter 9 ------------------------------------------------- Financial Planning and Forecasting Financial Statements ------------------------------------------------- ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS We like to use discussion questions along with relatively simple and easy to follow calculations for our lectures. Unfortunately, forecasting is by its very nature relatively complex, and it simply cannot be done in a realistic manner without using a spreadsheet. Accordingly, our primary “question” for Chapter 9 is really a problem, but one that can be discussed. Therefore, we base our lecture primarily on the BOC model and we use the class period to discuss forecasting and Excel modeling. We cover the chapter in about 2 hours, and then our students work a case on the subject later in the course. 9-1 The major components of the strategic plan include the firm’s purpose, the scope of its operations, its specific (quantified) objectives, its operating strategies, its operating plan, and its financial plan. Engineers, economists, marketing experts, human resources people, and so on all participate in strategic planning, and development of the plan is a primary function of the senior executives. Regional and world economic conditions, technological changes, competitors’ likely moves, supplies of resources, and the like must all be taken into account, along with the firm’s own R&D activities...
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...Individuals (Buyer) * Sellers (Companies * Market Equilibrium * Market structure - Industry Macro * Aggregate * Household * Business Sector * Government Goals in Macro Economic Policy 1. Price Stability – Inflation → Increase in general price level → Money Supply ↑ 2. Sustainable Economic Growth 3. Full Employment Price Stability * To measure success, inflation rate must e kept at single digit (less than 10%) * An increase in price levels will reduce the value of money * Inflation rate is measured every month * Inflation rate – measures the overall increase in price level in a given time period Tao – Bank – Company – Price 10 % wage vs. 0% inflation ↓Demand -↓Price-↑Demand Deflation in Japan 1990 Life Expectancy Saving vs. Spending Saving → Government 66 % Dependent 34 % 18-64 ↓Demand = ↓Price = ↓Q Supply = ↓ # of worker = ↑unemployment = ↑ Government Rely = ↓Interest Rate 0.000001% Iceland – 7 to 8 % Economy Collapsed Largest Denominated Note Zimbabwe – One Hundred Trillion Dollars 2 World Bank – Long term loans International Monetary Fund – Short term loans * Interest * Policy Recommendation * Economic Policies How do we measure inflation rate? Government uses a “basket of goods” to determine the increase in price level Basket of goods is composed of different commodities such as food, clothing, oil, transport, utilities etc. Ex. May 2013 – P100 2014 – P110 Inflation 10% Basket of Goods | 2000 | 2006 | Food, Beverage &...
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...Chapter 15 Monetary Policy Xingfei Liu, Ryerson University Interest Rates and Monetary Policy 15 LEARNING OBJECTIVES LO15.1 Discuss how the equilibrium interest rate is determined in the market for money. LO15.2 List and explain the main functions of the Bank of Canada. LO15.3 List and explain the goals and tools of monetary policy. LO15.4 Describe the overnight lending rate and how the Bank of Canada directly influences it. LO15.5 Identify the mechanisms by which monetary policy affects GDP and the price level. LO15.6 Explain the effectiveness of monetary policy and its shortcomings. LO15.7 Describe the effects of the international economy on the operation of monetary policy. 2 15.1 The Market for Money and the Determination of Interest Rates 3 KEY GRAPH - The Demand for Money, the Supply of Money, and the Equilibrium Interest Rate FIGURE 15-1 (a) Transactions demand for money, Dt (c) Total demand for money, Dm and supply (b) Asset demand for money, Da Rate of interest, i percent 10 7.5 Sm 5 + 2.5 = 5 0 Dt 50 100 150 Da 200 Amount of money demanded (billions of dollars) 50 100 150 200 Amount of money demanded (billions of dollars) Dm 50 100 150 200 250 300 Amount of money demanded and supplied (billions of dollars) ...
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...[pic] |1.1 PRELUDE | Financial Structure is the framework of various types of financing employed by a Oil company to acquire and support resources necessary for its operations, commonly, it comprises of stockholders’ investments, long- term loans, short-term loans and short-term liabilities as reflected on the right hand side of the Oil company balance sheet. Financial Structure is different from capital structure in the sense that it also includes current liabilities. Therefore, financial structure is the combination of two main components 1) Capital structure and 2) Current liabilities. To provide an understanding of the concept of financial structure in Oil sector specifically capital structure of Padma Oil Company Limited, the balance sheet, debt and equity, working capital, cost of capital and opportunity cost are need to be explained. The capital structure is how an Oil company finances its overall operations and growth by using different sources of funds. It is a mix of a company’s long-term debt, specific short-term debt, common equity and preferred equity. Debt comes in the form of bond issues or long-term notes payable, while equity is classified as common stock, preferred stock or retained earnings. Short-term debt such as working capital requirements is also considered part of the capital structure...
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...mobilization and pooling of savings; and easing the exchange of goods and service. Usually the financial development level is primarily determined by the local institutional quality, the extent of government police, geographic elements, native income level and cultural tradition. These factors formed the economic environment in which the banks and other financial firms to make decision for investment project and exogenous financing, furthermore, the customers decide whether consumption or saving, moreover, the financial intermediaries finance the fund in which approach from savers to borrowers. The well financial system can perfect the effect of information, enforcement and transaction cost on the saving rate, investment decision and technological innovation, and steady state growth rate. Financial market channel the fund to investment opportunities to get the profit, so if the financial system cannot work well, the economic growth also more or less affected. The essay mainly gives a brief introduction on the points of financial development and economic growth based on the area of Chinese. The essay mainly talks about the theories relate to the relationship of financial development and economic growth, the determining elements to accelerate the financial development, reform in financial sector in China, and the positive relationship between financial development...
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...Country Profiles Forex Traders' Guide to Major Economies Today we're going to take a trip around the world, but it ain't gonna take 80 days. If you're fast enough to keep up, we can probably get around in just 80 seconds! ...Not! In any case, we'll make sure you learn about the nitty-gritty of each major economy and what makes its engine go. For each country that we will be touring, we'll start off with a quick peek at the important facts and figures, followed by an overview of its economy. Once that's out of the way, we'll visit the country's central bank to find out some of their secrets. In this section, we will explore the powerful monetary policy tools central banks employ to control the country's economy. Hopefully, we'll stumble into the room where they keep their printing plates and we can sneak out the back door and sell it on the black market. We're kidding - we're here to teach you how to trade forex the legal way. After that, we'll discuss the important characteristics that differentiate that country's local currency from all the rest, as well as hard-hitting economic indicators for that country. To keep the trip interesting, we'll be dishing some trivia every now and trading tactics that will prove useful later on when you go off on your pip-catching adventure! And as we promised, this very exclusive field trip is covered by your scholarship. No need for travel visas and no need to buy a travel fanny. Although if you're paranoid like Huck, then go...
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...04 05 Year at a glance. Contents. Rupees in ‘000 Net sales Cost of sales Gross profit Distribution and marketing expenses Administrative expenses Other operating expenses Other operating income Operating profit before reorganization/restructuring cost Reorganization/restructuring cost Operating profit after reorganization/restructuring cost Finance costs Profit before taxation Taxation Profit for the year Earnings per share – basic and diluted in Rupees Number of permanent employees at year end 2012 3,739,405 (2,785,235) 954,170 (231,066) (193,676) (33,811) 68,635 564,252 (204,572) 359,680 (44,266) 315,414 (39,125) 276,289 11.03 162 2011 3,044,800 (2,275,591) 769,209 (211,490) (171,376) (40,554) 58,850 404,639 – 404,639 (1,916) 402,723 (139,848) 262,875 10.50 262 06 07 08 09 10 12 15 16 17 18 20 22 23 26 30 35 36 40 42 44 83 84 86 About Linde Pakistan Company information Our vision Our mission Code of Ethics Business divisions, products and services Business Business locations Key facilities around Pakistan Ten-year financial review Vertical & horizontal analysis Key financial data Statement of value added Profile of Directors Directors‘ report Country Leadership Team (CLT) Corporate governance Statement of compliance with the Code of Corporate Governance Review report to the members on Statement of Compliance Financial Statements of the Company Shareholders‘ information Pattern of shareholdings Notice of Annual General Meeting Form of proxy Turnover...
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...that would result in brokerage costs and possibly capital gains taxes. If you owned a high payout stock and wanted less dividends, you could (1) sell out and switch to a low dividend stock, (2) try to get the company to lower its payout (while possibly starting a stock repurchase program), or (3) join a dividend reinvestment plan. Selling would involve brokerage costs and possibly capital gains taxes. The dividend reinvestment plan would avoid brokerage fees, but you would have to pay taxes currently even if you reinvest the dividends. You would have a good chance of getting the company to follow your advice under Point 2 if your name were Warren Buffett. 17-2 Here are the three theories, which are illustrated in the BOC model. They should be thought of as applying to investors in the aggregate and not to each individual investor, because, obviously, different individuals will certainly have different preferences. MM Indifference. Investors in the aggregate don’t care. Those who like dividends are offset by those who do not want them. Bird in hand, or dividend preference. Most investors prefer cash dividends to retained earnings and possible future growth. Tax...
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...Performance evaluation of Commercial bank of Ceylon Limited: Bangladesh Performance Evaluation Commercial bank of Ceylon Limited Bangladesh Submitted to: Nazir Ahmed Khan School of Business United International University Submitted by: Md. Fakhrul Islam | 111093072 | Ararat Hossain | 111093015 | Syed Ahmed Sadee | 111093130 | Md. Omar Faruk | 111093145 | Rashed Abdullah Rumen | 111092105 | Section: A Course: Principles of Banking and Insurance Submission date: July 29, 2013 United International University Letter Of Transmittal July 29, 2013 Nazir Ahmed Khan School of Business United International University Subject: For the Acceptance of the Report. It is a great pleasure and privilege for us to submit this Report “Performance Evaluation of Commercial Bank of Ceylon in Bangladesh” prepared in accordance to the guidelines provided by you, as a requirement of the course “Principles of Banking and insurance”. We have tried our best to fulfill the requirements of this Report. By preparing this report, we have learned a great deal of knowledge. Therefore, pray and hope that you would be kind enough to accept this report and oblige thereby. Sincerely Md Fakhrul Islam | 111093072 | Ararat Hossain | 111093015 | Syed Ahmed Sadee | 111093130 | Md. Omar Faruk | 111093145 | Rashed Abdullah Rumen | 111092105 | Acknowledgement It is a great pleasure for us to express our deep sense of gratitude to our honorable course...
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...The Eurozone crisis (often referred to as the Euro crisis) is an ongoing crisis that has been affecting the countries of the Eurozone since late 2009. It is a combined sovereign debt crisis, a banking crisis and a growth and competitiveness crisis.[8] The crisis made it difficult or impossible for some countries in the euro area to repay or re-finance their government debt without the assistance of third parties. Moreover, banks in the Eurozone are undercapitalized and have faced liquidity problems. Additionally, economic growth is slow in the whole of the Eurozone and is unequally distributed across the member states.[8] In 1992, members of the European Union signed the Maastricht Treaty, under which they pledged to limit their deficit spending and debt levels. However, in the early 2000s, a number of EU member states were failing to stay within the confines of the Maastricht criteria and turned to securitising future government revenues to reduce their debts and/or deficits. Sovereigns sold rights to receive future cash flows, allowing governments to raise funds without violating debt and deficit targets, but sidestepping best practice and ignoring internationally agreed standards.[9] This allowed the sovereigns to mask (or "Enronize") their deficit and debt levels through a combination of techniques, including inconsistent accounting, off-balance-sheet transactions as well as the use of complex currency and credit derivatives structures.[9] From late 2009, fears of...
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...Annual Report 2009 Important Statement The Board of Directors of China Everbright Bank hereby undertakes that all information included in this Report does not contain any false information, misleading statement or material omission. Annual Report 2009 of China Everbright Bank was deliberated and passed at the third meeting of the Fifth Board of Directors of the Bank on March 24th, 2010. KPMG Huazhen audited the Bank’s Annual Financial Statements in accordance with China Standards on Auditing for Certified Public Accountants and issued an unqualified auditor’s report. Board of Directors China Everbright Bank Corporation Limited Contents Message from the Chairman of the Board of Directors 6 Message from the President 8 Message from the Chairman of the Board of Supervisors 10 Major Financial Information 12 Organizational Chart 14 Corporate Governance 18 Meetings of the Board of Directors and Board of Supervisors 21 Directors, Supervisors, Senior Management and Staff 24 Shareholders Profile and Related-Party Transactions 42 Management Report 45 Risk Management 48 Material Issues 57 Social Responsibility Report 58 Public Awards and Honors 60 Report of the Auditors 64 Financial Statements 66 Notes to Financial Statements 76 Address Book of Head Office and Branches 166 Message from the Chairman of the Board of Directors 6 Message...
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...Chapter 7 Analysis of Financial Statements ANSWERS TO BEGINNING-OF-CHAPTER QUESTIONS The answers to these questions are all contained in the BOC Excel model for this chapter, where they are illustrated with actual data and the ratios are calculated. ANSWERS TO END-OF-CHAPTER QUESTIONS 7-1 a. A liquidity ratio is a ratio that shows the relationship of a firm’s cash and other current assets to its current liabilities. The current ratio is found by dividing current assets by current liabilities. It indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future. The quick, or acid test, ratio is found by taking current assets less inventories and then dividing by current liabilities. b. Asset management ratios are a set of ratios which measure how effectively a firm is managing its assets. The inventory turnover ratio is sales divided by inventories. Days sales outstanding is used to appraise accounts receivable and indicates the length of time the firm must wait after making a sale before receiving cash. It is found by dividing receivables by average sales per day. The fixed assets turnover ratio measures how effectively the firm uses its plant and equipment. It is the ratio of sales to net fixed assets. Total assets turnover ratio measures the turnover of all the firm’s assets; it is calculated by dividing sales by total assets. c. Financial leverage...
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...Foreign Direct Investment in Bangladesh and articles related to Foreign Direct Investment in Bangladesh. I furnished the full contents of the report in eight chapters. I concentrated on arranging and putting the data in such a way that the report progressively anchors to a desired destination of understanding. Introduction Part-1 Investment has acquired considerable emotive force in any country. It is viewed as beneficial on employment creator-as it brings about economic development. It can termed capital flowing from a firm or individual within the country or in one country to a business or businesses in another country involving a share of at least 10%. So the significance of investment in a country is: 1. It increases the economic growth by sustain increase in real, per capita, national product. This brings -National income effect, Balance of payment effect & Public revenue effect. 2. Accelerate the industrial innovation this develops in integrations take a variety form which is not necessarily mutually...
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