Return on Equity SBL

 

Return on Equity

ROE is expressed as a percentage and can be calculated for any company if net income and equity are both positive numbers. Net income is calculated before dividends paid to common shareholders and after dividends to preferred shareholders and interest to lenders.

Formula: 

Return on Equity Sonali Bank Limited
FY2019	FY2018	FY2017	FY2016	FY2015
3.92%	3.32%	10.63%	2.18%	0.99%

 

Fig: ROE of Sonali Bank for 2015-19

 

 

In the graph, the researcher finds; up-down return on equity. Hare in 2015 and 16 the return on equity was consistently 0.99% and 2.18% then the next year in 2017 it moved to the top at 10.63%. Then in 2018 and 19 the return on equity consistently was 3.32% and   3.93%. In general eyes, it is an up-down graph. But the researcher focused deeply and fined it, the return on equity of Sonali Bank gradually moved upward from 2015 to 2019 except in 2017 ( 0.99% → 2.18% →3.32% → 2.92%). And in 2017 there was an economic benefit. 

  

Earnings per Share

The earnings per share value are calculated as the net income divided by the available shares.

Formula:

Earnings Per Share Sonali Bank Limited
FY2019	FY2018	FY2017	FY2016	FY2015
5.98	5.47	18.50	3.96	1.53

 

 

Fig: EPS of Sonali Bank for 2015-19

Earnings per Share represents the earning capacity of a company. It unfolds, how much profit earn by using per share. On the above graph, in 2019 the EPS is 5.98 that means Sonali Bank limited earns 5.98 Taka agents a share price. Here the research compares the last five years’ EPS horizontally to show the actual ability, growth, and long-term earning capability of Sonali Bank Limited.

In In this above graph, the researcher shows in 2015 the EPS was 1.53 then in 2016 the EPS was 3.96, and the same way the EPS of Sonali Bank Limited is growing until in 2019 at 5.98 except 2017. In 2017 the EPS was very high because at that time SBL had gotten an economic benefit.