The Earnings Quality of Banks and Non-Banking Financial Institutions

in Bangladesh

Submitted to:

Dr. Mizanur Rahman

Associate Professor
Department of Accounting & Information Systems
Faculty of Business Studies

University of Dhaka

Submitted By:

Md. Shahadat Hossen

ID: 14122

Sec: A

MBA-14 Batch

Department of Accounting &Information Systems.

University of Dhaka

Date of Submission: September 02, 2013.

 Declaration

This document is a working paper version and can be used by the author(s) as a partial fulfillment to the
degree requirement in the Department of Accounting & Information Systems, University of Dhaka. The
paper is an output of the research project entitled The Role of Accounting for Capital Market
Development in Bangladesh, administered under the Higher Education Quality Enhancement Project
(HEQEP) of the World Bank and the University Grants Commission (UGC) of Bangladesh. The paper has
not been peer-reviewed or been subject to review by the editorial board of the sub-project management.
The views expressed herein are those of the author(s) and do not represent the views of the sub-project
management or any of the institutions related to this sub-project (Contract# 47/2012). Responsibility for all
errors and misrepresentations rests with the author(s).

Copyright 2013 by Accounting for Capital Market Development (ACMD). All rights reserved. No part
of this working paper may be reproduced or utilized in any form or by any means, electronic or mechanical,
including photocopying, recording, or by information storage or retrieval system, without permission from
the sub-project management.
 Letter of Transmittal

Date: September 02, 2013

Dr. Mizanur Rahman

Associate Professor

Department of Accounting & Information Systems

Faculty of Business Studies

University of Dhaka

Sub: Submission of Internship report on Earnings Quality of Listed Commercial Banks and Non-
Banking Financial Institutions (NBFI) in Bangladesh.
Dear Sir,

With due respect and great pleasure I am submitting my research report on Earnings Quality of Listed
Commercial Banks and Non-Banking Financial Institutions (NBFI) in Bangladesh. The twelve-week
internship program was a great experience to me as it provided me with wide exposure to the research
environment and procedures. My key focus of the study is to assess the quality of the earnings conveyed
by the Listed Commercial Banks and Non-Banking Financial Institutions (NBFI) in Bangladesh. This topic
has given me a great opportunity to combine the theoretical knowledge with practical experience.

The report is prepared under your supervision and respectfully acknowledges of your guidance and
assistance. I believe the analysis done here will be helpful for further future research in this area. I will be
glad to clarify any queries regarding this report.

Thank you very much for your kind supervision and great co-operation.

Sincerely yours

(Md. Shahadat Hossen)

BBA ID: 14122, MBA ID: 470
MBA 14th Batch, Section: A
Department of Accounting & Information Systems
Faculty of Business Studies
University of Dhaka
 Acknowledgement

First and foremost I would like to thank my Creator for everything I belong. One requires a number of
assistance and guidance from reliable sources to prepare a research report. This report also stands on such
efforts.

At the very outset, I would like to express my sincere thanks and gratitude towards Dr. Mizanur Rahman,
Associate Professor, Department of Accounting & Information Systems, University of Dhaka for allowing
me to gather experience in his World Bank Research project as an intern. I am profoundly indebted to his
supervision and kind cooperation. He guided me a lot in the right direction that helped me immensely in
understanding research report and preparing this report efficiently. He provided me with all required
information, guidance, support and assistance to the development of work plan and report outline, data
analysis, and writing of this report. He made valuable comments and suggestions that were very helpful for
reorganizing and finalizing the report. I acknowledge his contribution and convey thanks to him.

I am also extremely grateful to the Dr Mahmuda Akter, Tanzina Haque, Asirus Salat who have
sacrificed their valuable time in providing me necessary information and made detailed comments that have
contributed to the planning of this report and internship program.

I am also thankful to the in charge of the Computer Lab and staff of the World Bank Project for supporting
me to be able to accomplish the report properly.
 Table of Contents
Chapter Particulars Page
No.
01. Introduction 1. Introduction 02
1.1 Origin of the Report 03
1.2 Objectives of the Report 04
1.3 Methodology of the 04
Report
02. Literature Review A review of related 05
literature
03. Fundamental of 3.1 Earnings 07
Earnings Quality and 3.2 Earnings Quality 07
Earnings Management 3.3 Earnings Management 11
04. Conceptual Persistence 14
Framework of the Predictability 15
research Smoothness 15
Accruals 16
05. Analysis and Findings of Banking 17
Findings Industry
Findings of Non-Banking 23
Financial Institutions
06. Conclusion Conclusion 26
References 27
Appendix 29
Abstract: The aim of this paper is testing the earnings quality of the listed commercial banks and non-
banking financial institutions of Bangladesh. Earnings provide a clue of effectiveness of firms
performance, decisions and policies. Higher quality earnings provide more information about the features
of a rms nancial performance that are relevant to a specic decision made by a specic decision-
maker. Various measures as indications of earnings quality including persistence, accruals,
smoothness, predictability, variability are being used in this report to assess earnings quality. For banking
industry it is found that Social Islami Bank Limited, Islami Bank Bangladesh Limited and Dutch Bangla
Bank Ltd have good quality of earnings and The Premier Bank Ltd, Rupali Bank Limited and Dhaka
Bank Limited have very poor quality earnings reported during the sample period. On the other hand, for
non-banking financial institutions it is found that the earnings quality of IPDC (Industrial Prom. & Dev.
Co. of BD Ltd), Uttara Finance and Investment and Phoenix Leasing Company are very good. But the
quality of earnings for Islamic Finance & Investment Ltd, Bay Leasing & Investment Limited and GSP
Finance Company (Bangladesh) Limited are low.
Key words: Earnings quality, persistence, predictability, smoothing, accruals, operating cash flows,
comprehensive net income.

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 Chapter One: Introduction

1 Introduction
The measurement of business and economic activity is vital to the assessment of the performance
of the entity. The publication of financial information has provided a means of producing an
account of the way in which resources have been utilized within business. In modern and
sophisticated capital markets, financial reporting has become a key material, for large companies
at least, whose goal is supplying demands and informational needs of users (IFRS: Certificate
Manual by ICAEW, 2012). Fundamental financial statement is regarded as major tool for
transferring information to outer organizational users and persons. Statement of
Comprehensive Income, one of the fundamental statements, covers return obtained from
resources controlled by management of the entity and determines performance of the entity
during desired period (Hamidreza Kordlouie et al, 2012).

Accounting profit that is reported and measured based on commitment offers more exact
evaluation of the entity and its financial status which is regarded as most important
information while making decision (Hamidreza Kordlouie et al, 2012). But reported earnings
alone may not communicate all the information in accounting data for evaluating the
performance properly. This is because of measurement and estimation errors, the integrity of the
matching process, the correspondence between a particular event and the firms normal
operations, and the likelihood of recurrence of an event or transaction (Patricia M. Fairfield et al,
1996).Earnings management or creative accounting can distort the decision usefulness of
earnings. Thus the earnings reported by the organization should be of high quality to be useful
for decision making. This paper evaluates the earnings quality of listed commercial banks and
non-banking financial institutions of Bangladesh.

The financial performance of banks and non-banking financial institutions has a colossal
economy of Bangladesh. Banks are commercial institutions that take deposits and extend loans.
Banks are concerned mainly with making and receiving payments on behalf of their customers,
accepting deposits, and making short-term loans to private individuals, companies, and other
organizations. However, they also provide money transmission services and in recent years have
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diversified into many areas of financial services. The commercial banking system dominates
Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief
regulatory authority in the sector. The banking system is composed of four state-owned
commercial banks, five specialized development banks, thirty eight private commercial Banks
and nine foreign commercial banks. On the other hand, NBFIs are a special type of financial
institutions provides a host financial service like; credit guarantee in international business,
export-import loans, project finance and consultancy, foreign exchanges etc. besides
arranging long term loans for the industry. I have worked on 30 listed commercial banks and
22 listed non-banking financial institutions of Bangladesh. However, the contribution of these
two sectors towards the economy across the globe and particularly in Bangladesh increased
many folds and generated curiosity amongst the investors.

As the empirical studies suggest numbers of research works have already been accomplished
on financial performance aspect and earnings quality to some extend either of banking sector
or non-banking financial institutions but research work in respect of earnings quality of both
the banks and NBFIs in Bangladesh in the post financial crisis regime is at a nascent stage.

1.1 Origin of the report

The Internship Paper titled as Earnings Quality of Listed Commercial Banks and Non-Banking
Financial Institutions (NBFI) in Bangladesh has been prepared as a practical fulfillment of
MBA program of Department of Accounting & Information Systems (AIS), University of
Dhaka. Duration of the internship program was for three months, commencing on May 15, 2013
and finishing on August 15, 2013. I have completed my internship program working in the
project named Higher Education Quality Enhancement Project (HEQEP) administrated by
University Grants Commission (UGC) and World Bank. During my internship tenure, I had to
prepare a report under the supervision of Dr. Mizanur Rahman, Associate Professor, Department
of Accounting & Information Systems (AIS), University of Dhaka. Thus this report is the
outcome of the requirement of MBA Internship Program.

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1.2 Objectives of the Report

The objectives of my internship paper are as follows:

a) To identify the major determinants affecting the earnings quality of a firm.

b) To evaluate the earnings quality of listed commercial banks and NBFIs of Bangladesh
using several measures as indications of earnings quality including persistence,
predictability, accruals, smoothness, etc.
c) To make a recommendation based on the analysis to enhance the earnings quality of these
sectors.

1.3 Methodology

The study requires a systematic procedure from selection of the topic to final report presentation.
To perform the study, data sources are to be identified and collected, they are to be classified,
analyzed, interpreted and presented in systematic manner and key points are to be found out. In
fact, correct & smooth completion of any paper depends on some rules, techniques &
methodologies. Rules are followed to make the data collection procedure easier. Accuracy of
the report depends on right information &accurate data analysis.
(a) Data Source: Since this paper is descriptive and qualitative in nature, I have relied on
secondary data with own insights. The data for this study was gathered from the audited
annual financial reports published by the listed 30 commercial banks and 22 non-banking
financial institutions for the period from 2007 to 2012. . Further, other sources like annual
report, magazines, brochures, journals, newspapers, websites, etc. were considered where
found necessary.

(b) Tools for Analyzing: For processing the data, descriptive statistics, simple correlation
and regression analysis in some cases were used for better understanding of
interrelationship and effectiveness of variables. Statistical tests with the help of SPSS were
conducted at 5% level of significance.

(d) Limitations of the Report: Every research has its own limitation. Few limitations are faced
while reaching the objectives of this report. Limited access to the data is the prime limitation of
this report, as the prime sources of data is the annual reports. Besides, scarcity of relevant
literature is major hindrance of the report. Lack of technical knowledge needed for such work is
worth mentioning.

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 Chapter Two: A Review of Related Literature

Several studies both in the country and abroad were undertaken to assess the decision usefulness
of earnings i.e., quality of earnings. But the fact remains that, most of the researches have been
conducted either on banking industry or non-banking financial institutions. So, literature
regarding earnings quality of banks and NBFIs in Bangladesh in particular is at embryonic stage.
An attempt is made hereunder to high light the contextual references for the area under study.

P. Dechow et al. (2010) demonstrated that because all of the proxies for earnings quality that
involve earnings (i.e., properties such as persistence, timely loss recognition, smoothness and
small profits) have at their core the reported accrual-based earnings number, these proxies are
affected both by the firms fundamental performance and by the measurement of performance.
But the proxies are not equally affected by these two factors. Therefore, the proxies do not
measure the same underlying construct.

Fairfield et al. (1996) reports that the disaggregation on the income statement is useful in
forecasting future performance (profitability) that means the accounting classification enhances
the quality of earnings . These forecasting improvements go beyond separating extra-ordinary
items and discontinued operations from the other components of earnings. Extra-ordinary items
and discontinued operations are uninformative regarding future earnings; these transactions may
have large measurement errors, may violate the matching principle, and are less likely to be
representative of normal operations or to recur in the future.

Penman and Zhang (2002) identify poor-quality earnings that result from changes in investment
coupled with conservative accounting.

S. H. Khandoker et al. reports that the profitability is influenced by Total Asset, Term Deposit,
Operating Revenue, and Operating Expenses When an NBFI has huge Operating Revenue
and Total Equity the investors feel more secured and approach to this NBFI for their investment.

Jian Zhou and Ken Y. Chen (2004) identify that banks with more active audit committees, audit
committees with better governance expertise, and more active boards are associated with less
income-increasing earnings management by banks. They also find that the number of audit

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committee meetings, audit committee members governance expertise, and the number of board
meetings play an important role in constraining earnings management for low earnings
management banks.

J. N. Myers et al. find that the earnings of firms reporting earnings strings are less variable than
those of a control sample with similar overall earnings growth, and that this lower earnings
volatility is not explained by lower cash flow volatility. They also show that there is an unusually
strong negative correlation between firms cash flows and their accounting accruals, consistent
with these accruals being used to smooth reported earnings. They further find that managers of
the sample firms exercise their discretion over the reporting of special items to smooth reported
EPS, reporting relatively more positive special items when changes in operating income are low
and relatively more negative special items when changes in operating income are high. Finally,
they provide evidence that managers strategically increase their firms stock repurchases to
increase EPS when it would otherwise decline, and that these firms effective tax rates vary
inversely with the magnitude of their earnings changes in a manner consistent with income
smoothing.

Shah-Noor Rahman and Tazrina Farah (2012), in their research paper Non-Bank Financial
Institutions Profitability Indicators: Evidence from Bangladesh examined the indicators of
the profitability of firms in the Non-Banking Financial Institution (NBFIs) industry of
Bangladesh. The study established a relationship between independent variables like; Current
Assets, operating expenses, Long term liability, Interest Income, and Operating revenue and
dependent variable; Net Profit (NP). It was observed that firms Liquidity and operational
efficiency has significant impact on Profitability of Non-Bank financial sector in Bangladesh.

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 Chapter Three: Fundamentals of Earnings Quality & Earnings Management

3.1 Earnings: Earnings is the net income or profit of a business (Oxford Dictionary of
Accounting, 2010, p.148). Earnings are usually calculated as all revenues (sales) minus cost of
sales, operating expenses, and taxes, over a given period of time. Earnings are an important
measure for public companies, because investors base investment decisions on earnings, and
stock price is based on earnings. Besides, dividends are paid based on annual earnings.

3.2 Earnings Quality: Earnings Quality refers to the degree to which the net profit of an
organization reflects accurately its operating performance. It is particularly important to ensure
that creative accounting has not taken place and that no events have occurred to distort the profit
figure (Oxford Dictionary of Finance and Banking).Earnings quality indicates the decision
usefulness of earnings (Patricia Dechow et al. 2010.)

Earnings quality, in accounting, refers to the overall reasonableness of reported earnings. The
extent to which a firm's reported earnings accurately reflect income for that period. Firms using
conservative accounting practices tend to penalize current earnings and are said to have high
earnings quality. At least over the short run, the earnings reported by a firm are as much a
function of its accounting methods as they are a measure of its business success (American
Heritage Dictionary of Business Terms, 2010).

Earnings quality is critical to the efficient allocation of resources in capital markets. Reports of
earnings that do not reflect the underlying economic performance of a firm inflicts losses on
individual investors, employees, other companies, and the economy as a whole. It is worth
mentioning that earnings quality is closely related with creative accounting or earnings
management. Earnings quality may be poor or good due to earnings management.

3.2.1Determinants of Earnings Quality: Patricia Dechow et al. 2010identified six categories of

determinants: (1) rm characteristics, (2) nancial reporting practices, (3) governance and
controls, (4) auditors, (5) equity market incentives, and (6) external factors. Brief description of
these categories with characteristics of each factors and the research findings of different
research papers are furnished in the next page. It should be noted that the Exhibit 1is the
summarized highlights of the heading Determinants of earnings quality of the research paper
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titled Understanding earnings quality: A review of the proxies, their determinants and their
consequences authored by Patricia Dechow, WeiliGe, and Catherine Schrand published in
Journal of Accounting and Economics, 2010.

Exhibit 1 Determinants of Earnings Quality

Determinants Characteristics Research Findings

Firm Weak performance provides incentives to engage in
performance earnings managementthus lowers earnings quality (Petroni,
1992; Keating and Zimmerman, 1999; Doyle et al., 2007;
Kinney and McDaniel, 1989).
Managers in more highly levered rms could be taking
Debt action to boost income or manipulate the nancial
statements so as to avoid violating a covenant (Watts and
(1) Firm Zimmerman, 1986).
Characteristics Growth and When growth is measured in terms of sales growth or net
Investment operating asset growth, then it appears that high growth
rms have lower earnings persistence ( Nissim and
Penman, 2001; Penman and Zhang, 2002)
Firm size is positively associated with earnings quality
Size because of xed costs associated with maintaining
adequate internal control procedures over nancial
reporting (Ball and Foster, 1982).
Choice of No evidence on the relation of specic accounting methods
Accounting to earnings smoothness and to earnings in formativeness
Methods (Gonedes, 1969; Bareeld and Comiskey, 1971;
Beidleman, 1973; Moses, 1987).
Financial Firms opportunistically use discretion over income
Statement statement classication to shift expenses into categories
Classication that might be perceived as less persistent (special items) to
&Interim meet analyst forecasts(McVay, 2006).The kink in earnings
(2) Financial Reporting is strongest for scal years for which the incentives for
Reporting Practices earnings management are greatest relative to annual
periods ending at the rst three scal quarters(Kerstein and
Rai, 2007 and Jacob and Jorgensen, 2007)
Principles Mixed evidence. Principles-based standards likely will not
based versus diminish opportunistic earnings management (Cuccia et
Rules based al., 1995; Nelson et al., 2002). Accounting standards with
methods more rule-based characteristics are associated with a
greaterdollar magnitude of misstatements using a sample of
GAAP violation rms (Mergenthaler, 2009).
Internal Control Internal control procedures are associated with less
Procedures earnings management (Doyle et al., 2007; Ashbaugh-Skaife
et al., 2008).

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 Independent boards (measured by a greater proportion of
Government outsiders), and higher audit committee quality (measured
mechanisms by independence and meeting frequency) are associated
with less earnings management (Abbott et al., 2004;
(3) Governance and Krishnan,
Controls 2005; Vafeas, 2005; Farber, 2005 )
Greater managerial ownership has an entrenchment effect
Managerial controlling shareholders extrapolate private benets at the
Ownership expense of minority shareholders through accounting
method choice (Smith, 1976; Dhaliwal et al., 1982) and
less conservatism (LaFond and Roychowdhury, 2008).
Audit firm size Firms with Big Audit firm have signicantly lower
discretionary accruals than rms with non-Big audit firm
(Beckeret al., 1998; Francis et al., 1999; Kim et al., 2003).
Audit fees The relation between audit fees and accruals quality is
mixed and depends heavily on the type of fees (e.g., audit
(4)Auditors versus non-audit), sample rms, and specic measure of
accruals quality (Gul and Srinidhi, 2007; Francis and Ke,
2006; Ruddock et al., 2006; Ferguson et al., 2004).
Auditor Tenure The relation between auditor tenure as a proxy for
effort/effectiveness and discretionary accruals is mixed
(Johnson et al., 2002; Chen et al., 2008).
Incentives Incentives to inuence equity market valuations affect
when rms rms accounting choices, in particular their accrual
(5) Equity Market raise capital choices (Teoh et al., 1998; Morseld and Tan, 2006).
Incentives
Earnings-based Sufficient evidence of earnings management to meet or
targets beat earnings targets (Kasznik, 1999; Das and Zhang,
2003; Roychowdhury, 2006).
Regulatory Firms engage in income-decreasing earnings management,
Intervention commonly measured by discretionary accruals, across a
/Political wide variety of settings in which prots would generate
Outcomes costly regulatory intervention or political outcomes
(6) External factors (Navissi, 1999; Monem, 2003; Johnston and Rock, 2005).
Tax Rule The LIFO conformity rule in the U.S. tax system has
impact on accounting method choice ( Lee and Hsieh,
1985; Hunt, 1985; Dopuch and Pincus, 1988)

3.2.2Consequences of Earnings Quality: Nine categories of consequences of earnings quality

have been identified by Patricia Dechow et al. 2010 in their research paper Understanding
earnings quality: A review of the proxies, their determinants and their consequences. These are
(1) litigation propensity, (2) audit opinions, (3) market valuations, (4) real activities including
disclosure,(5) executive compensation, (6) labor market outcomes, (7) a rms cost of equity
capital,(8) a rms cost of debt capital, and (9) analyst forecast accuracy. These factors with the
related research findings of different research works are provided in Exhibit 2.

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Exhibit 2 Consequences of Earnings Quality
Consequences Research Findings
Restatements that change the previous pattern of reported earnings increase
(1) Litigation litigation propensity (Palmrose and Scholz, 2004; and Lev et al.,
propensity 2008).Other studies also find a negative relation between earnings quality
and litigation propensity ( Gong et al., 2008; Ducharme et al., 2004).
High-accrual rms are more likely to get modied audit opinions
(2) Audit opinions (Francis and Krishnan, 1999), but abnormally high working capital accruals
are not associated with adverse audit opinions or auditor turnover (Bradshaw
et al., 2001).
Firms that consistently meet or beat prior period earnings targets or analyst
expectations are rewarded with higher valuations (Barth et al., 1999;
Kasznik and McNichols, 2002; Myers et al., 2007), even if there is evidence
(3) Market valuations of earnings management to achieve the results (Myers et al., 2007).
However, rms that manage earnings through discretionary loss reserves are
not rewarded with higher valuations (Petroni et al., 2000; Beaver and
McNichols, 1998; Beaver and Engel, 1996).
High accounting quality (i.e., conservatism, loss avoidance, and earnings
smoothing) reduces information asymmetry between managers and outside
(4) Real Activities suppliers of capital and therefore improves investment efciency (Biddle
including disclosure and Hilary (2006). Voluntary disclosure decisions are endogenously
determined by earnings quality ( Lougee and Marquardt, 2004; Chen et al.,
2002; Lennox and Park, 2006 )
Pay-for-performance sensitivities, on average, are positively associated with
various measures of earnings persistence (Balsam, 1998; Baber et al., 1998;
Nwaeze et al., 2006).Special items, which are most frequently negative, are
(5) Executive ltered out when determining executive compensation(Dechow et
Compensation al.1994).Expected earnings quality, measured primarily by timeliness, is
associated with ex ante compensation contract design, while changes in
earnings quality, measured by the incidence of restatement, are associated
with ex post re-contracting (Bushman et al., 2004; Cheng and Farber, 2008
).
Suggestion of signicant negative labor market consequences for individuals
(6) Labor Market at rms with low earnings quality (Desai et al., 2006; Karpoff et al., 2008;
Outcomes Srinivasan, 2005; Menon and Williams, 2008).Provision of evidence on the
turnover consequences of earnings informativeness rather than extreme,
publicly reported earnings management(Engel et al. 2003).
Earnings persistence is negatively associated with the implied cost of equity
capital, but earnings predictability is not (Francis et al., 2004).
Earnings predictability, however, is associated with bid-ask spreads (Afeck-
(7) Firms cost of Graves et al., 2002). Smoothness is associated with the implied cost of
equity capital equity capital at the rm level and country level (Francis et al., 2004;
Bhattacharya et al., 2003).Actually each study provides statistically
signicant evidence of a negative association between one or more
earnings quality proxies and a rms cost of capital,
Firms with lower quality accruals have a higher ratio of interest expense to
interest-bearing outstanding debt (Francis et al. 2005). Firms with higher
(8) Firms cost of debt board independence, higher audit committee independence, and larger board
capital size have lower costs of debt measured as the yield spread (Anderson et al.

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 2004). Banks use tighter loan contracting terms following their client rms
restatements (Graham et al. 2008).
IAS is of higher quality than a rms home country GAAP (Ashbaugh and
(9) Analyst forecast Pincus (2001). Pro forma earnings are of higher quality than GAAP
accuracy operating earnings(Bhattacharya et al. 2003).Analysts are not misled by
discretionary accruals that managers use to maximize bonus
compensation(Kim and Schroeder 1990).

3.3 Earnings Management: The popular and more extensive definitions of earnings
management have been furnished in Exhibit 3with proper references.

Exhibit 3 Defining Earnings Management

Earnings management occurs when managers use judgment in financial reporting and in
structuring transactions to alter financial reports to either mislead some stakeholders about
the underlying economic performance of the company or to influence contractual
outcomes that depend on accounting numbers (Healy and Wahlen (1999).

Earnings management is the active manipulation of accounting results for the purpose of creating
an altered impression of business performance (C. Mulford and E. Comiskey.1996)

Given that managers can choose accounting policies from a set (e.g., GAAP), it is natural to
expect that they will choose policies so as to maximize their own utility and/or the market value
of the firm. This is called earnings management (W. Scott, 1997)

3.3.1 Incentives and Conditions for Earnings Management

The desire to meet or exceed consensus earnings estimates is a powerful earnings-management

incentive. It is important to distinguish between the conditions that motivate earnings
management from the underlying incentives to manage earnings for better understanding of the
quality of earnings reported by an entity. The following Exhibit 4contains a summary of
significant conditions and incentives of earnings management.

Exhibit 4 Earnings Management: Conditions and Incentives

Conditions Incentives
Earnings are somewhat short of the consensus To avoid a potentially sharp drop in share
earnings forecast in the market. price.
A firm is preparing for an initial public offering To present the best possible earnings picture so
of its shares. as to maximize the price at which the issue is
sold.

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Earnings are just above the minimum level To cause earnings to remain between the
required to earn incentive compensation, or minimum and maximum earnings level so as
close to exceeding the maximum beyond which to maximize incentive compensation.
no additional incentive compensation is earned.
A firm is close to violation of an earnings- To avoid the potential adverse effects of or a
related financial covenant in a credit debt covenant violation, for example, an interest
agreement. rate increase, a demand for security or
immediate repayment.
Earnings are either somewhat above or below a To avoid an improper market response to
long-term trend believed by management to be earnings being temporarily off trend
sustainable.
Earnings volatility is induced by a series of To reduce earnings volatility so that a
nonrecurring items. valuation penalty, associated with a perceived
higher level of risk, is not assessed.
A change in the top management of the firm To take large write-offs immediately upon the
has taken place. arrival of new management, relieving future
results of the charges and permitting blame to
be assigned to outgoing management.
Large losses associated with restructuring and To reverse any overstated portion of the
related charges have been accrued in the past. accruals in order to achieve earnings goals in
later periods.
Source: The Financial Numbers Game: Detecting Creative Accounting Practices. New York: John Wiley & Sons, p.61.

3.3.2 Earnings Management Techniques

The most common class of earnings management techniques involves simply using the flexibility
that exists in GAAP. A sampling of possible earnings management techniques or accounting
activities that might be used for earnings-management purposes is provided in Exhibit 5.
Exhibit 5 Potential Earnings Management Techniques or Activities
1. Changing depreciation methods, (e.g., accelerated to straight-line)
2. Changing the useful lives used for depreciation purposes
3. Changing estimates of salvage value used for depreciation purposes
4. Determining the allowance required for uncollectible accounts or loans receivable
5. Determining the allowance required for warranty obligations
6. Deciding on the valuation allowance required for deferred tax assets
7. Determining the presence of impaired assets and any necessary loss accrual
8. Estimating the stage of completion of percentage-of-completion contracts
9. Estimating the likelihood of realization of contract claims
10. Estimating write-downs required for certain investments

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11. Estimating the amount of a restructuring accrual
12. Judging the need for and the amount of inventory write-downs
13. Estimating environmental obligation accruals
14. Making or changing pension actuarial assumptions
15. Determining the portion of the price of a purchase transaction to be assigned to
acquired in-process research and development
16. Determining or changing the amortization periods for intangibles
17. Deciding the extent to which various costs such as landfill development, direct-response
advertising, and software development should be capitalized
18. Deciding on the proper hedge-classification of a financial derivative
19. Determining whether an investment permits the exercise of significant influence over
the investee company
20. Deciding whether a decline in the market value of an investment is other than
temporary
Source: The Financial Numbers Game: Detecting Creative Accounting Practices. New York: John Wiley & Sons, p.65.

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 Chapter Four: Conceptual Framework of the Research

Earnings is the indicator of the effectiveness of asset-liability management, policies and

procedures of the entity, and most significantly the performance of the firm. Thus earnings can
be expressed as a function of firms nancial performance during a reporting period.
Reported Earnings = ( )
The function f represents the accounting system that converts the unobservable X into observable
earnings and X is the enterprises nancial performance during a reporting period. According to
this equation it is clear that earnings and the decision usefulness of earnings is a function of
performance itself, and not just the measurement of X. So the quality of a reported earnings
number depends on whether it is informative about the rms nancial performance.

Both the firms financial performance and the accounting systems that measure earnings are the
contributory factors for earnings quality. As good quality earnings depends on the performance
of the firm, different performance highlighting ratios such as ROCE, RNOA, ROA and Earning
Per Share (EPS) are used to evaluate the profitability so as to assess the performance of the
firms.

Analysis of earnings quality: Researchers have used various measures as indications of

earnings quality including persistence, predictability, accruals, smoothness, timeliness, loss
avoidance, investor responsiveness, value relevance, and external indicators. For the purpose of
this report some commonly used metrics for earnings quality (or earnings attributes) such as
persistence, smoothness, accruals and predictability are performed to evaluate the quality of
earnings.

1. Persistence: Persistence measures the extent current earnings persist or recur in the future.
High persistence is regarded a desirable earnings attribute by investors, and of high earnings
quality, since it suggests a stable, sustainable and low-risk earnings process. Persistence is
commonly estimated by the slope coefficient from a regression of current earnings on lagged
earnings.(Ralf, E., and Wagenhofer,A., 2010)P. Dechow et al. (2010)use the slope coefficient
from regressing expected second-period earnings (Earningst+1) on first-period earnings

14 | P a g e
(Earningst)that shows how expected second-period earnings are affected by first-period earnings.
They provide a simple model that estimates earnings persistence and I also follow this model.

Earningst+1 = + Earningst+ t

Earnings are scaled, for the purpose of this report, by comprehensive net income (net profit after
tax). A higher implies a more persistent earnings stream and a greater persistence is supposed
to indicate higher earnings quality. Intuitively, the logic behind earnings persistence being a
quality metric is as follows: If rm A has a more persistent earnings stream than rm B, in
perpetuity, then (i) in rm A, current earnings is a more useful summary measure of future
performance; and (ii) annuitizing current earnings in rm A will give smaller valuation errors
than annuitizing current earnings in rm B. Thus higher earnings persistence is of higher quality
when the earnings is also value-relevant. (P. Dechow et al. 2010)

2. Predictability: Predictability encompasses the notion that earnings are of high quality the
more useful they are to predict itself. Similar to persistence, predictability is generally viewed as
a desirable attribute of earnings because it reduces the variability of forecasts of earnings. There
are several ways to empirically estimate predictability. One is using the same regression of
current earnings on lagged earnings, as for estimating persistence, but taking R2as the proxy for
predictability. Another way is taking the standard deviation of the residuals from the same
regression. (Ralf, E., and Wagenhofer,A., 2010)

Ralf and Wagenhofer use the variance of second-period earnings Earningst+1conditional on the
earnings report in the first period Earningst, that is, Var(Earningst+1 Earningst). A lower
conditional variance implies that investors have more precise information for forecasting second-
period earnings. To retain the convention that a higher value of the metric is indicative of higher
earnings quality, they define predictability as the negative value of the conditional variance of
second-period earnings Earningst+1, that is,

Predictability = Var (Earningst+1 Earningst)

3. Smoothness: The smoothness of earnings can be considered either as a favorable or an
unfavorable earnings attribute. Consistent with persistence and predictability, a smoother
earnings series is less volatile and allows for better forecasting. For example, managers can use

15 | P a g e
their private information to smooth out nonrecurring effects. Smoothness is then the converse of
volatility and, therefore, smoother earnings are indicative of higher earnings quality. On the other
hand, smoothness can be considered as reducing the information content in earnings and mask
the firms true performance. Under this view, smoothness is a measure for earnings
management, and since earnings management is considered undesirable, smoother earnings are
associated with a lower earnings quality. (Ralf, E., and Wagenhofer,A., 2010)

One metric of smoothness is the ratio of the standard deviation of earnings and the standard
deviation of operating cash flows, that is,

Smoothness = (Earnings) (Cash ows).

A lower ratio indicates more smoothing of the earnings stream relative to cash ows. For the
purpose of this paper, cash flows are scaled by Operating cash flow before changes in operating
assets and liabilitiesfor both banks and NBFIs.

4. Accruals: The accrual quality specifically seeks to capture the quality of the accounting
system, rather than the quality of the accounting and the operating environment. The idea is that
high accrual quality also proxies for high earnings quality, holding the operating environment
constant (Ralf, E., and Wagenhofer,A., 2010).To estimate the accrual quality the following
metric, suggested by, P. Dechow et al., is used in this paper.

Accruals = Earningst CFt

For this metric earnings are scaled by operating income and Operating cash flow before changes
in operating assets and liabilities are treated as cash flows as usual.Extreme accruals are low
quality because they represent a less persistent component of earnings.

16 | P a g e
 Chapter Five: Analysis and Findings
Banking Industry:Table 2 of the Appendix represents industry average of the banking sector for
operating income, comprehensive net income, operating cash flows before changes in operating
assets and liabilities, ROCE, RONA, ROA, EPS, accruals etc. It is found that earning per share
(EPS) and comprehensive net income has an increasing trend from 2007 to 2010. But there is a
significant decrease in these figures during 2011 and 2012. Operating income and the amount of
accruals are increasing significantly during the sample period 2007-2012. However, operating
cash flows before changes in operating assets and liabilities and return on common equity
(ROCE) are fluctuating where return on net operating assets(RNOA) and return on operating
assets (ROA) are stable during the period at 6%.
Exhibit 6: Earnings Quality Proxies for Banks (Sample Period: 2007-2012)
No Company Name Persistence Predictabi- Smooth Accruals Standard
Significance lity -ness * Deviation
1. ABBANK 0.172 0.159 0.799 0.18 0.71 2316.8 1069.26
2. CITYBANK 0.361 0.402 0.502 0.60 0.66 1114.7 738.62
3. IFIC -0.051 -0.042 0.947 0.35 0.50 56.5 414.57
4. ISLAMIBANK 0.816 0.950 0.013*** 0.10 0.49 3638.82 1513.24
5. NBL 0.201 0.204 0.742 1.13 1.87 3523.03 2569.10
6. PUBALIBANK 0.257 0.289 0.637 0.14 0.69 1045.9 678.41
7. RUPALIBANK 0.003 0.029 0.963 0.84 3.37 -2165.5 4898.33
8. UTTARABANK 0.229 0.452 0.445 0.65 0.55 1595.7 439.22
9. ICIBANK 0.151 0.306 0.617 2.02 4.92 -1173.5 949.67
10. EBL 0.698 0.868 0.057*** 0.22 0.69 1548.6 930.54
11. ALARABANK 0.729 0.801 0.103*** 0.26 0.52 1153.2 679.13
12 PRIMEBANK 0.506 0.605 0.280 0.38 0.50 2740.9 1059.47
13. SOUTHEASTB 0.397 0.560 0.326 0.56 0.66 3128.3 837.13
14. DHAKABANK 0.104 0.107 0.864 0.26 1.43 3359.1 619.72
15. NCCBANK 0.455 0.581 0.304 0.24 0.84 2417.9 684.50
16. SIBL 1.378 0.990 0.001* 0.10 0.71 1277.3 511.71
17. DUTCHBANGLA 0.831 0.918 0.028** 0.11 0.62 1541.5 771.33
18. MTBL 0.226 0.245 0.692 0.99 0.57 1241.2 316.62
19. STANBANKL 0.579 0.763 0.133 0.21 0.47 2051.9 417.34
20. ONEBANKL 0.347 0.393 0.512 0.62 0.92 1428.1 571.63
21. BANKASIA 0.298 0.320 0.600 0.31 0.536 1275.1 620.14
22. MERCANBANK 0.648 0.737 0.155 0.13 1.19 2775.9 498.05
23. EXIMBANK 0.215 0.249 0.686 0.31 0.85 3229.2 905.96
24. JAMUNABANK 0.579 0.950 0.013** 3.50 1.28 2516.8 419.74
25. BRACBANK 0.222 0.232 0.707 0.26 0.40 699.3 597.80
26. SHAHJABANK 0.240 0.262 0.670 0.22 0.49 1986.8 548.38
27. PREMIERBANK 0.065 0.080 0.898 10.29 0.91 2290.2 581.55
28. TRUSTBANK 0.140 0.134 0.830 0.66 0.99 967.6 427.58
29. FIRSTSBANK 0.952 0.939 0.018** 1.17 0.66 2205.4 287.89
30. UCBL 0.417 0.455 0.442 0.45 0.69 2271.5 881.03
*Accruals are the average figures during the sample period.

17 | P a g e
By analyzing Exhibit 6: Earnings Quality Proxies for Banks, another table can be structured by
ranking the banks according to their earnings quality into two broad headings- High Quality
Earnings and Poor Quality Earnings.
No. High Quality Earnings No. Low Quality Earnings
1. Social Islami Bank Limited 1. The Premier Bank Ltd
2. Islami Bank Bangladesh Limited 2. Rupali Bank Limited
3. Dutch Bangla Bank Ltd 3. Dhaka Bank Limited
4. Eastern Bank Limited 4. ICB Islamic Bank Limited
5. Al-Arafah Islami Bank Ltd 5. National Bank limited

Arab Bangladesh Bank (AB Bank): The persistence result of Arab Bangladesh Bank ( =
0.159) implies that its earnings are not stable and sustainable. The low refers a less persistent
earnings stream which indicates lower earnings quality. But investors of this bank have more
precise information for forecasting following year earnings as it indicated by lower conditional
variance of 0.18. The amount of accruals and the variability of earnings, 2316.8 and 1069.26
respectively, are also high for this bank further indicating its lower earnings quality. If we look at
ROCE, RNOA and ROA of this bank over the years 2007 through 2012, we can easily dictate
that the performance of this organization is also poor because all these variables highlight a
deceasing trend during the sample period. The earning per share (EPS) is fluctuating from 3.30
to 26.61. Poor performance may act as a factor for earning management here.

The City Bank Limited: The earnings quality of City Bank Limited is also poor as per the result
of persistence (0.402), conditional variance or predictability (0.60) and earnings smoothing
(0.66) although its accruals and standard deviation of earnings are of lower amounts. The return
on net operating assets (RNOA) and return on operating assets (ROA) are almost stable over the
years but earning per share (EPS) and return on equity (ROCE) show much fluctuation from year
2007 to year 2012. These results suggest an unstable, unsustainable and high-risk earnings
process. So earnings conveyed by City bank Limited are more volatile and less informative for
forecasting.

International Finance Investment And Commerce Bank Limited (IFIC Bank): Though the
amount of accruals of IFIC is so minimum (56.5) compared to the industry average (1735.26)
and lower variability of earnings (414.57), the quality of earnings is not good enough. The
earnings are not persistent during the sample period as indicated by negative of 0.042. Besides,
its earnings are moderately predictable (conditional variance of 0.35). The EPS and ROCE from
18 | P a g e
2007 to 2012 are not stable rather fluctuating. The performance of the bank is becoming poor in
recent years. Poor quality earnings may be associated with poor performance.

Islami Bank Bangladesh Limited: The earnings quality of Islami Bank Bangladesh is very
good. In fact, I rank this bank 2nd for high quality of earnings. Though it has the highest accruals
in the industry during the sample period, the result of persistence, predictability and smoothing
suggest that its earnings are stable, sustainable and of low-risk. Besides, it also refers that its
earnings are so informative for forecasting and investors can easily rely on that earnings.

National Bank limited: National Bank Limited is being ranked as 5th for low quality of
earnings. It has low persistent earnings that fail to predict future earnings and investors will not
have precise information for forecasting. Extreme accruals of that bank (3523.03) are also
representative of low earnings quality because they present a less persistent component of
earnings. Besides, its Earnings Per Share (EPS) are gradually decreasing over the years which
may also be considered for earnings management factor that further lowers the quality of
earnings.

Pubali bank limited: The persistence result of Pubali Bank Limited ( = 0.289) implies that its
earnings are not stable and sustainable. The low refers a less persistent earnings stream which
indicates lower earnings quality. But investors of this bank have more precise information for
forecasting following year earnings as it indicated by lower conditional variance of 0.14. The
amount of accruals and the variability of earnings, 1045.9 and 678.41 respectively, are low for
this bank compared to the other banks. Finally it can be inferred that the earnings quality of
Pubali Bank Limited is moderately good.

Rupali Bank Limited: This bank is the 2nd worst performer regarding poor earnings quality. It
has the highest standard deviation (4898.33) in the industry during the sample period. It has low
persistent earnings that fail to predict future earnings and investors will not have precise
information for forecasting. Besides lower persistent earnings is supposed to indicate lower
earnings quality. The smoothing of the earnings stream relative to cash flows is also high of this
bank.

Uttara Bank Limited: The earnings quality of Uttara Bank Limited is also poor as per the result
of persistence (0.452), conditional variance or predictability (0.65) and earnings smoothing

19 | P a g e
(0.55) although its accruals and standard deviation of earnings are of lower amounts. The return
on net operating assets (RNOA) and return on operating assets (ROA) are almost stable over the
years but earning per share (EPS) and return on equity (ROCE) show much fluctuation from year
2007 to year 2012. These results suggest an unstable, unsustainable and high-risk earnings
process. So earnings conveyed by Uttara bank Limited are more volatile and less informative for
forecasting.

ICB Islamic Bank Limited: The smoothing of the earnings stream relative to cash flows is the
highest (4.92) of this bank. The conditional variance (2.02) of this bank is also higher. But the
of this bank is low. All these measures indicate that the earnings quality of this bank is not good.
The EPS and accruals are negative for the years 2008 to 2012.

Eastern Bank Limited: The earnings quality of Eastern Bank Limited is good. In fact, I rank
this bank 4th for high quality of earnings. The result of persistence, predictability and smoothing
suggest that its earnings are stable, sustainable and of low-risk. Besides, it also refers that its
earnings are so informative for forecasting and investors can easily rely on that earnings. But the
amount of accruals show an increasing trend for the sample period.

Al-Arafah Islami Bank Ltd: Al-Arafah Islami Bank Ltd is one of the banks having good
earnings quality. It reserves the 5th position for high quality of earnings. The earnings metrics for
this bank are all ( = 0.801, conditional variable = 0.26, smoothness = 0.52) indicating good
quality of earnings. Its variability of earnings is also low (679.13). Besides it has a decreasing
accruals trend. The bank has EPS on an average 3.68 which is better comparing to the industry
average of 4.5.

Prime Bank Ltd: The amount of accruals, earning per share (EPS), return on equity (ROCE) all
are fluctuating over the years significantly. The amount of operating income and comprehensive
net income are also increasing from 2007 to 2012. The earnings quality of Prime Bank limited is
relatively good as indicated by persistence, predictability, smoothness etc.

Southeast Bank Limited: The operating income of this bank presents a significantly increasing
trend. The net comprehensive income is also increasing from 2007 to 2010 but slightly reduced
in the years of 2011 and 2012. The average EPS of the bank is 3.08 which is lower compared to
the industry average of 4.5. Though the accruals are increasing year to year, the bank has more

20 | P a g e
persistent earnings. Having high conditional variance it fails to provide informative earnings to
for cast the future earnings.

Dhaka Bank Limited: Dhaka Bank is one of the five banks having very poor quality of
earnings. I have ranked this bank as 3rd considering the metrics of persistence, predictability,
smoothness, accruals etc. Operating income, comprehensive net income, EPS, accruals all the
variables are having an increasing trend. The average ROCE is 20% which is higher comparing
to the industry average of 18%. The bank is having higher EPS on an average (4.6) compared to
industry average of 4.5. Considering the overall factors it can be said that its earnings are of
moderately poor quality.

National Credit and Commerce Bank Limited: Operating income, comprehensive net income,
EPS, accruals all the variables are having an increasing trend. The average ROCE is 20% which
is higher comparing to the industry average of 18%. The bank is having higher EPS on an
average (4.6) compared to industry average of 4.5. Considering the overall factors it can be said
that its earnings are of moderately poor quality.

Social Islami Bank Limited: Social Islami bank Limited is the best among all the listed
commercial banks regarding its earnings quality. It has the highest (0.990) and the lowest
conditional variance (0.10). The variability of earnings is also low here (511.71). It has been
ranked 1st for having high quality earnings. During 2007 to 2010 its accruals were stable but
significantly increased in year 2011 and 2012. It has EPS on an average 1.75 which is much
lower than that of industry average (4.5). In a nutshell, the earnings quality of this bank is high.

Dutch Bangla Bank Ltd: The earnings quality of Dutch Bangla Bank Ltd is also good. In fact, I
rank this bank 3rd for high quality of earnings. The result of persistence, predictability and
smoothing suggest that its earnings are stable, sustainable and of low-risk. Besides, it also refers
that its earnings are so informative for forecasting and investors can easily rely on that earnings.
However, the operating income, net comprehensive income, operating cash flows before changes
in operating cash flows are increasing gradually. The return on common equity (ROCE), return
on net operating assets (RNOA) and return on assets (ROA) all are almost stable.

21 | P a g e
Mutual Trust Bank Ltd: The earnings conveyed by the MTBL can be categorized under poor
quality considering the metrics of persistence (0.245), predictability (0.99), smoothness (0.57),
standard deviation, and accruals.

Standard Bank Limited: The earnings conveyed by the SBL can be categorized under good
quality considering the metrics of persistence (0.763), predictability (0.21), smoothness (0.47),
standard deviation, and accruals (2051.9).

One Bank Limited: The earnings conveyed by the One Bank can be categorized under poor
quality considering the metrics of persistence (0.393), predictability (0.62), smoothness (0.92),
standard deviation, and accruals.

Bank Asia Limited: The earnings conveyed by the Bank Asia can be categorized under
relatively poor quality considering the metrics of persistence (0.320), predictability (0.13),
smoothness (0.54), standard deviation, and accruals (1275.1).

Mercantile Bank Limited: The earnings conveyed by the Mercantile Bank Limited can be
categorized under good quality considering the metrics of persistence (0.737), predictability
(1.19), smoothness (0.47), standard deviation, and accruals (2775.9).

Export Import Bank Of Bd. Ltd: The earnings conveyed by the EXIM bank can be categorized
under relatively low quality considering the metrics of persistence (0.249), predictability (0.31),
smoothness (0.85), standard deviation, and accruals (3229.2).

Jamuna Bank Ltd: The quality of the earnings reported by the Jamuan Bank Limited is of low
quality considering predictability (3.50), smoothness (1.28) and the amount of accruals. But it
has high slope coefficient (= 0.950) which indicates more persistent earnings over the years.
The RONA, ROA are relatively stable where EPS and ROCE are moderately fluctuating during
the sample period.

Brac Bank Ltd: The Brac Bank has the lowest smoothing result (0.40) and also lower
conditional variance (0.26) both aggregately state its earnings quality. But the value of
persistence is not good that also presents poor quality of earnings. Both the operating income and
net comprehensive income are increasing rapidly.

22 | P a g e
Shahjalal Islami Bank Ltd: The earnings conveyed by the Shahjalal Islami Bank Ltd bank can
be categorized under relatively slightly good quality considering the metrics of persistence
(0.262), predictability (0.22), smoothness (0.49), standard deviation, and accruals (1986.8) and
standard deviation (548.38). These results suggest a relatively stable, sustainable and low-risk
earnings process. So earnings conveyed by Shahjalal Islami Bank Ltd are less volatile and more
informative for forecasting.

The Premier Bank Ltd: The Premier Bank is the worst bank for having the lowest earnings
quality among all listed commercial banks. It has been ranked 1st under the category of poor
quality of earnings. It has the highest conditional variance of 10.29 and the lowest of 0.080 that
fail to predict future earnings and investors will not have precise information for forecasting.
Besides lower persistent earnings is supposed to indicate lower earnings quality. The smoothing
of the earnings stream relative to cash flows is also high of this bank.

Trust Bank Limited: The earnings conveyed by the Trust Bank Limited can be categorized
under poor quality considering the metrics of persistence (0.134), predictability (0.66),
smoothness (0.99), standard deviation, and accruals.

First Security Islami Bank Limited: The earnings conveyed by the First Security Islami Bank
Limited bank can be categorized under moderately good quality considering the metrics of
persistence (0.939), predictability (1.17), smoothness (0.66), standard deviation, and accruals
(2205.4) and it has the lowest standard deviation (287.89) compared to other banks.

United Commercial Bank Ltd: The earnings conveyed by the United Commercial Bank Ltd
can be categorized under moderately quality considering the metrics of persistence (0.455),
predictability (0.45), smoothness (0.69), standard deviation (881.03), and accruals. (2271.5).

Non-Banking Financial Institutions (NBFIs): Table 10 of the Appendix represents

industry average of the non-banking financial institutions for operating income, comprehensive
net income, operating cash flows before changes in operating assets and liabilities, ROCE,
RONA, ROA, EPS, accruals etc. It is found that earning per share (EPS) and comprehensive net
income has an increasing trend from 2007 to 2010. But there is a significant decrease in these
figures during 2011 and 2012. Operating income is increasing significantly during the sample
23 | P a g e
period 2007-2012. However, operating cash flows before changes in operating assets and
liabilities, accruals and return on common equity (ROCE) are fluctuating where return on net
operating assets (RNOA) and return on operating assets (ROA) are stable during the period
2007-2010 but sharply reduced in 2011 and 2012.
Exhibit 7: Earnings Quality Proxies for NBFIs (Sample period: 2007-2012)
No Company Name Persistence Predictab Smooth- Accru- Standard
Significance -ility ness als Deviatio
n
1. MIDAS 0.193 0.085 0.891 2.49 1.75 31.2 94.95
2. IDLC 0.054 0.062 0.921 0.37 0.38 250.4 371.21
3. ULC -0.026 -0.028 0.964 0.44 0.97 378.0 87.71
4. UTTARAFIN 0.724 0.816 0.092 0.14 0.32 769.48 272.83
5. FIRSTLEASE -1.628 -0.913 0.030 0.34 0.39 78.14 33.47
6. PLFS 0.151 0.162 0.795 1.01 0.47 315.2 319.36
7. PRIMEFIN 0.158 0.164 0.792 1.05 0.85 293.8 572.87
8. PREMIERFIN 0.140 0.125 0.842 0.43 0.33 183.4 38.98
9. ISLAMICFIN -2.402 -0.617 0.267 58.67 2.70 85.3 177.17
10. LANKABANFIN 0.154 0.162 0.795 0.87 0.66 906.9 597.90
11. BIFC 0.187 0.148 0.813 1.04 1.45 255.2 68.61
12 IPDC -0.510 -0.560 0.327 0.04 0.13 152.8 12.94
13. UNIONCAP -0.003 -.003 0.996 1.77 1.17 283.6 194.12
14. BFIC -0.313 -.300 0.624 2.80 0.57 107.7 82.54
15. ILFS 0.119 0.106 0.865 0.46 0.31 827.3 100.75
16. PHOENIXFIN 0.859 0.839 .076 0.13 1.12 672.7 81.33
17. FAS 0.164 0.148 0.812 1.11 0.54 67.1 33.23
18. BAYLEASING -0.080 -0.084 0.916 3.74 1.12 363.6 229.47
19. ICB 0.758 0.827 0.084 0.99 0.63 1962.8 1841.45
20. GSPF* -1.545 -1.00 3.29 0.70 112.0 33.37
21. DBH** 0.480 0.584 0.416 0.12 0.64 501.0 130.67
22. NATIONALH 0.102 0.078 0.901 0.22 0.36 146.0 40.80
*Data available for 2010-2012
**Data available for 2008-2012
Accruals are the average figures during the sample period.

By analyzing Exhibit 7: Earnings Quality Proxies for NBFIs, a table can be structured by ranking
the banks according to their earnings quality into two broad headings- High Quality Earnings and
Poor Quality Earnings.

No. High Quality Earnings No. Low Quality Earnings

1. IPDC (Industrial Prom. & Dev. Co. of BD 1. Islamic Finance & Investment Ltd
Ltd)
2. Uttara Finance and Investment 2. Bay Leasing & Investment Limited
3. Phoenix Leasing Company 3. GSP Finance Company (Bangladesh) Limited
4. National Housing Finance and Investment 4. Bangladesh Finance and Investment
Co.Ltd (BFIC)
5. Premier Finance 5. Union Capital Ltd.
24 | P a g e
The exhibit 7 represents that IPDC (Industrial Prom. & Dev. Co. of BD Ltd), Uttara Finance and
Investment, Phoenix Leasing Company, National Housing Finance and Investment and Premier
Finance are the best earnings quality reporting companies in Bangladesh. IPDC has the best
value for predictability and smoothness. It has also the lowest standard deviation of earnings
(12.94) during the sample period. Though its slope coefficient () is negative (-0.560),
considering all other earnings quality proxies it is found that its earnings are of good quality.
Uttara Finance and Investment and Phoenix Leasing Company have a high value of , 0.816 and
0.839 that suggest a stable, sustainable and low-risk earning process. National Housing Finance
and Investment Premier Finance grab the 4th and 5th position for having good quality earnings.
From the exhibit 7 it is also clear that investors have more precise information for forecasting
earnings for this companies. Their low accruals are also indicating about their earnings quality.

The exhibit 7 also represents that Islamic Finance & Investment Ltd, Bay Leasing & Investment
Limited , GSP Finance Company (Bangladesh) Limited , Bangladesh Finance and Investment
Co.Ltd (BFIC) and Union Capital Ltd. Are ranked from 1 st to 5th for having low quality earnings.
Islamic Finance & Investment Ltd has the highest value for conditional variance (58.67) and
smoothing of earnings (2.70) indicating that its earnings are not informative and persistent for
forecasting and more volatile among the industry. The earnings quality proxies for Bay Leasing
& Investment Limited, GSP Finance Company (Bangladesh) Limited, Bangladesh Finance and
Investment Co.Ltd (BFIC) and Union Capital Ltd highlight that their earnings are not persistent
thus have less predictive value. Besides, it can also be inferred that there is more smoothing of
earnings stream relative to cash flows. The earnings of other non-banking financial institutions
can be categorized as moderately poor or moderately good. However, it is notable that MIDAS
Company has the lowest accruals (31.2) where ICB has the highest accruals (1962.8). ICB has
also the highest variability of earnings (1841.45).

25 | P a g e
 Chapter Six: Conclusion

Banks and Non- Banking Financial Institutions (NBFIs) are the major players in the economic
development of a country in this global age and competitive market. In a developing country like
ours the role of these institutions cant be described in words. Now they have become the
backbone for the financial strength of Bangladesh. For ensuring the proper role played by banks
and NBFIs, the effectiveness of their policies, procedures and reported accounts shall be judged
for the benefit of the investors. Because investors are the main contributor in any stock market.
However, the quality of earnings is a relative matter and can be evaluated by different measures
as suggested by different scholars. In this paper I have used persistence, predictability,
smoothness, variability, accruals as the earnings quality proxies for evaluating the earnings
quality of banks and NBFIs in Bangladesh during the period of 2007-2012. All of the proxies are
based on reported earnings and affected by both fundamental performance of a company and its
measurement.

The earnings of banks and NBFIs are on average of good quality. Though some of the banks and
NBFIs have very poor quality earnings, the overall condition regarding earnings quality of these
two industry is hopeful. But for ensuring the benefits of the investors, creditors and other users of
financial information reported by the organizations, all these companies should practice properly
and the relevant authority should have come forward to monitor reporting practices and policies
of the organization. Some rules, regulations should be imposed so that the management retain
themselves from creative accounting for highlighting rosy pictures of the entity but the quality of
earnings is low in fact.

26 | P a g e
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Fairfield, P.M., Sweeney, R.J., and Yohn, T.L., 1996. Accounting Classification and the
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Penman, S., Zhang, X., 2002. Accounting conservatism, the quality of earnings, and stock
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Khandoker, S.H.,Raul, R.K., and Rahman, S.M. Determinants of profitability of Non-Bank

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Appendix
Listed Commercial Banks
ABBANK( AB Bank Limited )
ALARABANK( Al-Arafah Islami Bank )
BANKASIA( Bank Asia Ltd. )
BRACBANK( BRAC Bank Ltd. )
CITYBANK( City Bank )
DHAKABANK( Dhaka Bank )
DUTCHBANGL( Dutch-Bangla Bank )
EBL( Eastern Bank )
EXIMBANK( Export Import (Exim) Bank of
Bangladesh )
FIRSTSBANK( First Security Islami Bank
Limited )
ICBIBANK( ICB Islamic Bank Limited )
IFIC( IFIC Bank )
ISLAMIBANK( Islami Bank )
JAMUNABANK( Jamuna Bank Ltd. )
MERCANBANK( Mercantile Bank Ltd. )
MTBL( Mutual Trust Bank Ltd. )
NBL( NBL )
NCCBANK( NCCBL )
ONEBANKLTD( One Bank Limited )
PREMIERBAN( The Premier Bank Ltd. )
PRIMEBANK( Prime Bank )
PUBALIBANK( Pubali Bank )
RUPALIBANK( Rupali Bank )
SHAHJABANK( Shahjalal Islami Bank Ltd. )
SIBL( Social Islami Bank Limited )
SOUTHEASTB( Southeast Bank )
STANDBANKL( Standard Bank Limited )
TRUSTBANK( Trust Bank Limited )
UCBL( United Commercial Bank Ltd. )
UTTARABANK( Uttara Bank )
Codification:
oi= operating income, cni= comprehensive net income, ocfbcoal= operating cash flows before
changes in operating assets and liabilities, roce= return on common equity, rnoa= return on net
operating assets, roa= return on operating assets, eps= earnings per share.
Listed Non-Banking Financial Institutions
BAYLEASING( Bay Leasing & Investment Limited )
BDFINANCE( Bangladesh Finance and Investment
Co.Ltd )
BIFC (Bangladesh Industrial Fin. Co. Ltd.)
DBH (Delta Brac Housing Finance Corp. Ltd.)
FASFIN( FAS Finance & Investment Limited )
FLEASEINT (First Lease Finance and Investment
Ltd.)
GSPFINANCE( GSP Finance Company
(Bangladesh) Limited )
ICB( ICB )
IDLC (IDLC Finance Ltd.)
ILFSL( International Leasing & Financial
Serv.Ltd )
IPDC( Industrial Prom. & Dev. Co. of BD Ltd. )
ISLAMICFIN( Islamic Finance & Investment
Ltd. )
LANKABAFIN( LankaBangla Finance ltd. )
MIDASFIN( MIDAS Financing Ltd. )
NHFIL( National Housing Fin. and Inv. Ltd. )
PHOENIXFIN( Phoenix Finance and Investments
Ltd. )
PLFSL( Peoples Leasing and Fin. Services Ltd. )
PREMIERLEA( Premier Leasing & Finance
Limited )
PRIMEFIN( Prime Finance & Investment Ltd. )
ULC( United Leasing )
UNIONCAP( Union Capital Limited )
UTTARAFIN( Uttara Finance )
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Table 1: Data Set for Listed Commercial Banks (Sample Period: 2007-2012)
Bank year oi cni ocfbcoal roce rnoa roa eps accruals
ABBANK 2007 4491.0 1903.5 3284.0 0.422 0.085 0.082 25.610 1207.0
ABBANK 2008 5708.7 2300.0 2851.0 0.342 0.081 0.079 10.310 2857.7
ABBANK 2009 7402.6 3417.2 4715.0 0.332 0.081 0.077 13.330 2687.6
ABBANK 2010 7711.2 3989.5 6709.0 0.282 0.069 0.067 12.450 1002.2
ABBANK 2011 5583.3 1390.4 2859.0 0.093 0.045 0.045 3.770 2724.3
ABBANK 2012 6766.2 1461.8 3344.0 0.090 0.049 0.049 3.300 3422.2
CITYBANK 2007 1718.1 343.5 505.0 0.119 0.050 0.048 2.890 1213.1
CITYBANK 2008 1639.7 398.1 1569.0 0.094 0.038 0.038 2.910 70.7
CITYBANK 2009 2984.4 818.7 1886.0 0.140 0.055 0.052 5.210 1098.4
CITYBANK 2010 4040.3 1870.2 3605.0 0.162 0.056 0.055 4.810 435.3
CITYBANK 2011 4973.0 2056.1 3124.0 0.115 0.054 0.055 4.070 1849.0
CITYBANK 2012 4160.5 794.5 2139.0 0.044 0.041 0.042 1.260 2021.5
IFIC 2007 2214.1 964.9 1833.0 0.369 0.080 0.074 14.390 381.1
IFIC 2008 1828.3 657.3 1622.0 0.206 0.053 0.053 4.900 206.3
IFIC 2009 2410.0 899.5 1635.0 0.214 0.057 0.052 5.160 775.0
IFIC 2010 2981.1 1647.1 3617.0 0.286 0.055 0.053 7.560 -635.9
IFIC 2011 2771.2 831.8 2860.0 0.124 0.039 0.040 3.000 -88.8
IFIC 2012 2599.6 416.8 2898.0 0.060 0.031 0.032 1.200 -298.4
ISLAMIBANK 2007 4980.3 1427.4 3323.0 0.127 0.031 0.031 3.750 1657.3
ISLAMIBANK 2008 7799.6 2674.8 6596.0 0.190 0.043 0.043 5.630 1203.6
ISLAMIBANK 2009 10232.5 3403.6 4952.0 0.169 0.046 0.045 5.510 5280.5
ISLAMIBANK 2010 12131.6 4485.5 7158.0 0.219 0.045 0.044 6.050 4973.6
ISLAMIBANK 2011 13001.7 4624.6 10594.0 0.166 0.041 0.042 4.620 2407.7
ISLAMIBANK 2012 17491.2 5616.8 11181.0 0.142 0.044 0.045 4.490 6310.2
NBL 2007 2961.9 1238.1 1970.0 0.271 0.068 0.066 10.250 991.9
NBL 2008 3455.4 1524.0 2949.0 0.214 0.059 0.058 8.140 506.4
NBL 2009 4995.5 2083.0 2117.0 0.233 0.065 0.063 7.320 2878.5
NBL 2010 11137.2 6871.6 4683.0 0.359 0.096 0.094 15.570 6454.2
NBL 2011 12055.7 6113.0 5336.0 0.284 0.085 0.084 7.110 6719.7
NBL 2012 7431.5 1430.8 3844.0 0.064 0.042 0.043 1.010 3587.5
PUBALIBANK 2007 2310.2 1353.5 2183.0 0.215 0.040 0.040 6.450 127.2
PUBALIBANK 2008 2875.7 1515.2 1914.0 0.191 0.041 0.042 5.150 961.7
PUBALIBANK 2009 4239.1 2092.2 4086.0 0.212 0.049 0.047 5.470 153.1
PUBALIBANK 2010 5693.7 3233.1 4204.0 0.219 0.054 0.054 6.510 1489.7
PUBALIBANK 2011 5181.1 2265.8 3848.0 0.135 0.041 0.043 3.380 1333.1
PUBALIBANK 2012 5544.4 1761.9 3334.0 0.094 0.037 0.039 2.100 2210.4
RUPALIBANK 2007 11017.5 476.0 1.044 88.140 -11493.5
RUPALIBANK 2008 874.1 1417.6 0.107 6.990 -543.5
RUPALIBANK 2009 1668.5 2125.0 0.299 13.350 -456.5
RUPALIBANK 2010 2058.8 600.3 2342.0 0.042 0.022 0.024 4.800 -283.2
RUPALIBANK 2011 3345.8 1091.0 4802.0 0.072 0.030 0.033 7.930 -1456.2
RUPALIBANK 2012 3925.7 439.2 2686.0 0.030 0.032 0.038 2.660 1239.7
UTTARABANK 2007 1081.3 409.5 899.0 0.167 0.025 0.025 10.260 182.3
UTTARABANK 2008 2332.6 1138.5 1494.0 0.309 0.048 0.049 14.250 838.6
UTTARABANK 2009 2514.1 1105.2 1994.0 0.178 0.041 0.040 6.920 520.1

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UTTARABANK 2010 3191.3 1551.9 2053.0 0.181 0.047 0.047 6.480 1138.3
UTTARABANK 2011 3926.8 1650.3 2240.0 0.171 0.051 0.052 5.740 1686.8
UTTARABANK 2012 5378.8 1244.4 171.0 0.127 0.052 0.053 3.760 5207.8
ICIBANK 2007 610.9 0.7 0.074 11.770 610.2
ICIBANK 2008 -776.7 488.0 0.255 -1.170 -1264.7
ICIBANK 2009 -2063.2 -7.0 0.465 -3.100 -2056.2
ICIBANK 2010 -1360.0 17.0 0.234 -2.050 -1377.0
ICIBANK 2011 -1796.2 81.0 0.236 -2.700 -1877.2
ICIBANK 2012 -1061.0 1171.0 0.122 -1.600 -1076.0
EBL 2007 1234.8 419.1 1561.0 0.109 0.037 0.036 4.050 63.8
EBL 2008 2319.2 797.8 2362.0 0.169 0.053 0.052 5.750 758.2
EBL 2009 3636.4 1454.5 2901.0 0.173 0.065 0.063 5.830 1274.4
EBL 2010 4968.7 2514.2 4711.0 0.205 0.072 0.070 8.610 2067.7
EBL 2011 6426.9 2520.7 3832.0 0.175 0.065 0.065 5.570 1715.9
EBL 2012 7243.8 2392.7 421.0 0.139 0.060 0.061 3.910 3411.8
ALARABANK 2007 1317.8 347.3 1447.0 0.170 0.061 0.058 3.010 896.8
ALARABANK 2008 1846.8 668.2 1424.0 0.247 0.066 0.065 4.830 399.8
ALARABANK 2009 2300.7 859.0 3168.0 0.241 0.062 0.058 4.770 876.7
ALARABANK 2010 3932.5 1816.1 3860.0 0.188 0.071 0.070 3.880 764.5
ALARABANK 2011 3995.2 1697.7 2889.0 0.141 0.049 0.050 2.880 135.2
ALARABANK 2012 6735.0 1945.4 1474.0 0.138 0.060 0.060 2.730 3846.0
PRIMEBANK 2007 4540.8 1398.8 3930.0 0.266 0.066 0.065 6.150 3066.8
PRIMEBANK 2008 4838.4 1249.0 5583.0 0.186 0.050 0.050 4.390 908.4
PRIMEBANK 2009 8007.0 2848.5 6206.0 0.241 0.074 0.072 8.010 2424.0
PRIMEBANK 2010 8172.2 3642.8 6954.0 0.209 0.060 0.059 6.310 1966.2
PRIMEBANK 2011 10481.2 3689.0 6954.0 0.191 0.060 0.060 4.730 3527.2
PRIMEBANK 2012 11506.5 2700.4 1171.0 0.129 0.056 0.056 2.890 4552.5
SOUTHEASTB 2007 2355.7 374.2 1608.0 0.061 0.042 0.041 1.640 747.7
SOUTHEASTB 2008 4359.3 909.9 2402.0 0.124 0.060 0.060 3.190 1957.3
SOUTHEASTB 2009 5964.1 1870.2 2347.0 0.165 0.059 0.058 5.460 3617.1
SOUTHEASTB 2010 7021.7 2763.9 2127.0 0.160 0.061 0.060 3.990 4894.7
SOUTHEASTB 2011 7107.3 1912.2 5175.0 0.099 0.051 0.051 2.300 1932.3
SOUTHEASTB 2012 8649.5 1648.7 3029.0 0.083 0.053 0.053 1.890 5620.5
DHAKABANK 2007 2565.2 703.8 903.0 0.225 0.060 0.057 4.550 1662.2
DHAKABANK 2008 3184.8 838.8 1445.0 0.212 0.060 0.059 4.340 1739.8
DHAKABANK 2009 3455.6 959.4 1248.0 0.193 0.062 0.056 4.510 2207.6
DHAKABANK 2010 4524.3 1679.0 1597.0 0.256 0.068 0.065 6.310 2927.3
DHAKABANK 2011 6772.9 2242.6 536.0 0.241 0.079 0.078 6.250 6236.9
DHAKABANK 2012 6031.6 788.6 651.0 0.081 0.056 0.056 1.690 5380.6
NCCBANK 2007 2530.7 677.2 1389.0 0.230 0.068 0.066 5.010 1141.7
NCCBANK 2008 2904.3 882.3 1908.0 0.218 0.058 0.057 5.020 996.3
NCCBANK 2009 4894.6 1719.5 2099.0 0.285 0.085 0.081 7.530 2795.6
NCCBANK 2010 5645.4 2371.7 2973.0 0.253 0.078 0.077 5.270 2672.4
NCCBANK 2011 7049.7 2199.0 3500.0 0.190 0.077 0.077 3.700 3549.7
NCCBANK 2012 6448.6 1450.0 3097.0 0.119 0.059 0.060 2.090 3351.6
SIBL 2007 1104.7 150.0 381.0 0.090 0.064 0.063 1.340 723.7
SIBL 2008 1382.0 202.1 667.0 0.108 0.064 0.064 1.540 715.0
SIBL 2009 1656.5 431.5 943.0 0.120 0.058 0.056 1.600 713.5
31 | P a g e
SIBL 2010 2014.8 640.1 1380.0 0.153 0.050 0.050 2.140 634.8
SIBL 2011 3566.6 1032.5 2161.0 0.110 0.057 0.057 1.610 1405.6
SIBL 2012 5451.1 1465.2 1980.0 0.144 0.065 0.065 2.290 3471.1
DUTCHBANGLA 2007 2211.4 479.8 1154.0 0.266 0.064 0.062 23.740 1057.4
DUTCHBANGLA 2008 2504.0 821.7 153.0 0.260 0.053 0.053 8.220 2351.0
DUTCHBANGLA 2009 3300.6 1137.7 2111.0 0.261 0.056 0.054 7.580 1189.6
DUTCHBANGLA 2010 3848.9 2002.3 3017.0 0.271 0.048 0.048 10.010 831.9
DUTCHBANGLA 2011 4535.6 2154.9 3190.0 0.241 0.049 0.050 10.770 1345.6
DUTCHBANGLA 2012 5638.2 2314.1 3165.0 0.213 0.053 0.054 11.570 2473.2
MTBL 2007 1432.3 210.8 294.0 0.103 0.055 0.054 2.110 1138.3
MTBL 2008 1830.1 305.0 1306.0 0.123 0.055 0.055 2.040 524.1
MTBL 2009 2830.6 820.6 1493.0 0.223 0.066 0.063 4.650 1337.6
MTBL 2010 3168.9 988.4 1344.0 0.226 0.065 0.065 4.660 1824.9
MTBL 2011 2564.0 404.2 1965.0 0.084 0.038 0.039 1.590 599.0
MTBL 2012 3130.3 327.9 1107.0 0.068 0.039 0.039 1.290 2023.3
STANBANKL 2007 1333.8 346.7 157.0 0.125 0.069 0.068 1.760 1176.8
STANBANKL 2008 2021.0 656.6 94.0 0.192 0.068 0.068 2.980 1927.0
STANBANKL 2009 2758.2 764.2 1209.0 0.181 0.065 0.063 2.890 1549.2
STANBANKL 2010 3746.0 1369.0 1943.0 0.243 0.065 0.064 4.310 1803.0
STANBANKL 2011 4620.4 1296.5 2249.0 0.189 0.073 0.072 3.190 2371.4
STANBANKL 2012 4899.0 1251.2 1415.0 0.102 0.063 0.063 2.570 3484.0
ONEBANKL 2007 1546.0 404.9 764.0 0.221 0.065 0.064 3.900 782.0
ONEBANKL 2008 1717.7 422.0 1023.0 0.182 0.063 0.063 3.250 694.7
ONEBANKL 2009 2784.9 726.7 1647.0 0.237 0.073 0.070 4.660 1137.9
ONEBANKL 2010 4136.9 1887.5 2182.0 0.388 0.084 0.082 9.180 1954.9
ONEBANKL 2011 4077.2 1271.0 2191.0 0.206 0.073 0.073 3.990 1886.2
ONEBANKL 2012 4183.8 1120.2 2071.0 0.153 0.060 0.061 2.700 2112.8
BANKASIA 2007 1965.5 659.8 1281.0 0.249 0.064 0.061 4.730 684.5
BANKASIA 2008 2513.2 686.7 1930.0 0.206 0.058 0.057 3.940 583.2
BANKASIA 2009 3938.4 1327.2 1691.0 0.268 0.069 0.065 6.190 2247.4
BANKASIA 2010 4851.7 1929.6 3588.0 0.273 0.055 0.054 6.430 1263.7
BANKASIA 2011 6195.7 2043.3 4151.0 0.162 0.062 0.061 3.890 2044.7
BANKASIA 2012 4078.0 849.9 3251.0 0.065 0.035 0.035 1.350 827.0
MERCANBANK 2007 1964.9 540.5 1365.0 0.185 0.053 0.051 3.610 599.9
MERCANBANK 2008 2560.1 615.9 1671.0 0.177 0.054 0.054 3.420 889.1
MERCANBANK 2009 3117.1 807.5 1690.0 0.189 0.056 0.053 3.740 1427.1
MERCANBANK 2010 4453.9 1425.3 2119.0 0.198 0.059 0.058 3.500 2334.9
MERCANBANK 2011 6397.1 1755.7 1592.0 0.180 0.063 0.063 3.530 4805.1
MERCANBANK 2012 7452.4 1369.8 853.0 0.125 0.056 0.057 2.240 6599.4
EXIMBANK 2007 2993.6 930.8 1279.0 0.230 0.075 0.071 4.350 1714.6
EXIMBANK 2008 3746.3 1096.6 2257.0 0.220 0.067 0.067 4.100 1489.3
EXIMBANK 2009 5266.6 1683.0 2412.0 0.251 0.075 0.074 4.990 2854.6
EXIMBANK 2010 7392.5 3458.0 4433.0 0.278 0.076 0.075 5.060 2959.5
EXIMBANK 2011 7344.2 2017.7 2790.0 0.139 0.070 0.070 2.190 4554.2
EXIMBANK 2012 9132.0 2083.1 3329.0 0.126 0.073 0.073 1.980 5803.0
JAMUNABANK 2007 479.5 89.1 176.0 0.054 0.022 0.022 0.730 303.5
JAMUNABANK 2008 1765.1 479.4 79.0 0.222 0.069 0.068 3.650 1686.1
JAMUNABANK 2009 2628.9 923.1 120.0 0.232 0.065 0.063 5.690 2508.9
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JAMUNABANK 2010 2988.3 1066.0 875.0 0.166 0.048 0.048 4.780 2113.3
JAMUNABANK 2011 3703.5 1101.2 256.0 0.151 0.051 0.051 3.020 3447.5
JAMUNABANK 2012 5041.5 1110.3 0.133 0.054 0.054 2.470 5041.5
BRACBANK 2007 1875.7 618.3 1677.0 0.201 0.052 0.050 5.150 198.7
BRACBANK 2008 3314.1 973.5 3242.0 0.179 0.057 0.056 6.150 72.1
BRACBANK 2009 5118.6 1373.4 2754.0 0.156 0.071 0.066 6.670 2364.6
BRACBANK 2010 5594.0 2073.1 5673.0 0.196 0.059 0.057 7.740 -79.0
BRACBANK 2011 6687.3 1812.4 4965.0 0.173 0.062 0.062 5.640 1722.3
BRACBANK 2012 4141.9 699.8 4225.0 0.061 0.031 0.032 1.820 -83.1
SHAHJABANK 2007 1689.6 647.0 935.0 0.232 0.081 0.078 3.460 754.6
SHAHJABANK 2008 2364.7 817.7 1361.0 0.227 0.071 0.070 3.640 1003.7
SHAHJABANK 2009 3575.5 1070.6 1516.0 0.217 0.077 0.075 3.910 2059.5
SHAHJABANK 2010 5731.1 2072.3 3368.0 0.307 0.091 0.090 6.050 2363.1
SHAHJABANK 2011 4971.6 1290.2 3437.0 0.158 0.059 0.059 2.900 1534.6
SHAHJABANK 2012 7206.5 1746.2 3001.0 0.174 0.069 0.069 3.140 4205.5
PREMIERBANK 2007 454.8 78.8 481.0 0.032 0.018 0.017 0.470 -26.2
PREMIERBANK 2008 2190.8 650.7 483.0 0.209 0.069 0.067 3.850 1707.8
PREMIERBANK 2009 3232.3 1088.3 589.0 0.235 0.084 0.079 4.850 2643.3
PREMIERBANK 2010 4207.5 1772.0 2074.0 0.282 0.078 0.076 6.080 2133.5
PREMIERBANK 2011 3938.2 510.9 1174.0 0.076 0.065 0.065 1.340 2764.2
PREMIERBANK 2012 5066.9 603.4 548.0 0.084 0.077 0.077 1.300 4518.9
TRUSTBANK 2007 1041.6 239.0 638.0 0.111 0.046 0.046 2.050 403.6
TRUSTBANK 2008 1615.4 463.1 1074.0 0.148 0.050 0.050 3.010 541.4
TRUSTBANK 2009 2263.6 610.9 1111.0 0.163 0.055 0.053 3.310 1152.6
TRUSTBANK 2010 3187.1 1294.4 1689.0 0.257 0.063 0.062 5.840 1498.1
TRUSTBANK 2011 3577.2 933.4 1788.0 0.159 0.057 0.057 3.510 1789.2
TRUSTBANK 2012 1484.8 182.7 1064.0 0.027 0.021 0.021 0.530 420.8
FIRSTSBANK 2007 1144.9 30.6 0.027 0.056 0.054 0.310 1144.9
FIRSTSBANK 2008 1721.2 104.3 189.0 0.068 0.070 0.069 0.450 1532.2
FIRSTSBANK 2009 2011.2 326.8 770.0 0.114 0.051 0.049 1.420 1241.2
FIRSTSBANK 2010 2849.8 548.6 840.0 0.136 0.052 0.052 1.810 2009.8
FIRSTSBANK 2011 3752.2 580.2 1086.0 0.128 0.051 0.051 1.710 2666.2
FIRSTSBANK 2012 5992.0 761.9 1354.0 0.135 0.059 0.060 2.040 4638.0
UCBL 2007 2147.9 815.1 1574.0 0.260 0.053 0.051 27.240 573.9
UCBL 2008 2720.0 764.7 1775.0 0.174 0.055 0.055 25.560 945.0
UCBL 2009 3563.7 932.9 2426.0 0.164 0.050 0.048 7.810 1137.7
UCBL 2010 5562.3 2179.8 4020.0 0.279 0.052 0.051 7.490 1542.3
UCBL 2011 8755.1 2945.2 4765.0 0.185 0.066 0.065 4.050 3990.1
UCBL 2012 7821.0 1585.2 2381.0 0.087 0.048 0.049 1.890 5440.0
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 2: Banking Industry Average Data (From 20072012)
Year OI cni ocfbcoal roce rona roa eps accruals
2007 2060.29 981.01 1292.00 0.20 0.06 0.054 3.55 456.19
2008 2823.52 823.71 1777.62 0.18 0.06 0.06 5.35 941.95
2009 3967.26 1238.67 2131.8 0.20 0.06 0.06 5.51 1654.69
2010 4979.18 2012.36 3076.43 0.23 0.06 0.06 6.49 1789.29
2011 5770.96 1787.91 3213.00 0.16 0.06 0.06 3.84 2244.05
2012 6228.7 1350.06 2426.03 0.11 0.05 0.05 2.42 3325.44
Source: Accounting for Capital Market Development (ACMD, 2013)

Table 3: Data Set for Listed Commercial Banks 2007

Company OI cni ocfbcoal roce rona roa eps accruals
ABBANK 5583.3 1390.4 2859 0.093 0.045 0.045 3.77 1207.0
CITYBANK 4973 2056.1 3124 0.115 0.054 0.055 4.07 1213.1
IFIC 2771.2 831.8 2860 0.124 0.039 0.04 3 381.1
ISLAMIBANK 13001.7 4624.6 10594 0.166 0.041 0.042 4.62 1657.3
NBL 12055.7 6113 5336 0.284 0.085 0.084 7.11 991.9
PUBALIBANK 5181.1 2265.8 3848 0.135 0.041 0.043 3.38 127.2
RUPALIBANK 3345.8 1091 4802 0.072 0.03 0.033 7.93 -11493.5
UTTARABANK 3926.8 1650.3 2240 0.171 0.051 0.052 5.74 182.3
ICIBANK -1796 81 0.236 -2.7 610.2
EBL 6426.9 2520.7 3832 0.175 0.065 0.065 5.57 63.8
ALARABANK 3995.2 1697.7 2889 0.141 0.049 0.05 2.88 896.8
PRIMEBANK 10481.2 3689 6954 0.191 0.06 0.06 4.73 3066.8
SOUTHEASTB 7107.3 1912.2 5175 0.099 0.051 0.051 2.3 747.7
DHAKABANK 6772.9 2242.6 536 0.241 0.079 0.078 6.25 1662.2
NCCBANK 7049.7 2199 3500 0.19 0.077 0.077 3.7 1141.7
SIBL 3566.6 1032.5 2161 0.11 0.057 0.057 1.61 723.7
DUTCHBANGLA 4535.6 2154.9 3190 0.241 0.049 0.05 10.77 1057.4
MTBL 2564 404.2 1965 0.084 0.038 0.039 1.59 1138.3
STANBANKL 4620.4 1296.5 2249 0.189 0.073 0.072 3.19 1176.8
ONEBANKL 4077.2 1271 2191 0.206 0.073 0.073 3.99 782.0
BANKASIA 6195.7 2043.3 4151 0.162 0.062 0.061 3.89 684.5
MERCANBANK 6397.1 1755.7 1592 0.18 0.063 0.063 3.53 599.9
EXIMBANK 7344.2 2017.7 2790 0.139 0.07 0.07 2.19 1714.6
JAMUNABANK 3703.5 1101.2 256 0.151 0.051 0.051 3.02 303.5
BRACBANK 6687.3 1812.4 4965 0.173 0.062 0.062 5.64 198.7
SHAHJABANK 4971.6 1290.2 3437 0.158 0.059 0.059 2.9 754.6
PREMIERBANK 3938.2 510.9 1174 0.076 0.065 0.065 1.34 -26.2
TRUSTBANK 3577.2 933.4 1788 0.159 0.057 0.057 3.51 403.6
FIRSTSBANK 3752.2 580.2 1086 0.128 0.051 0.051 1.71 1144.9
UCBL 8755.1 2945.2 4765 0.185 0.066 0.065 4.05 573.9
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 4: Data Set for Listed Commercial Banks 2008
Company OI cni ocfbcoal roce rona roa eps accruals
ABBANK 5708.7 2300 2851 0.342 0.081 0.079 10.31 2857.7
CITYBANK 1639.7 398.1 1569 0.094 0.038 0.038 2.91 70.7
IFIC 1828.3 657.3 1622 0.206 0.053 0.053 4.9 206.3
ISLAMIBANK 7799.6 2674.8 6596 0.19 0.043 0.043 5.63 1203.6
NBL 3455.4 1524 2949 0.214 0.059 0.058 8.14 506.4
PUBALIBANK 2875.7 1515.2 1914 0.191 0.041 0.042 5.15 961.7
RUPALIBANK 874.1 1417.6 -0.11 6.99 -543.5
UTTARABANK 2332.6 1138.5 1494 0.309 0.048 0.049 14.25 838.6
ICIBANK -776.7 488 0.255 -1.17 -1264.7
EBL 2319.2 797.8 2362 0.169 0.053 0.052 5.75 758.2
ALARABANK 1846.8 668.2 1424 0.247 0.066 0.065 4.83 399.8
PRIMEBANK 4838.4 1249 5583 0.186 0.05 0.05 4.39 908.4
SOUTHEASTB 4359.3 909.9 2402 0.124 0.06 0.06 3.19 1957.3
DHAKABANK 3184.8 838.8 1445 0.212 0.06 0.059 4.34 1739.8
NCCBANK 2904.3 882.3 1908 0.218 0.058 0.057 5.02 996.3
SIBL 1382 202.1 667 0.108 0.064 0.064 1.54 715.0
DUTCHBANGLA 2504 821.7 153 0.26 0.053 0.053 8.22 2351.0
MTBL 1830.1 305 1306 0.123 0.055 0.055 2.04 524.1
STANBANKL 2021 656.6 94 0.192 0.068 0.068 2.98 1927.0
ONEBANKL 1717.7 422 1023 0.182 0.063 0.063 3.25 694.7
BANKASIA 2513.2 686.7 1930 0.206 0.058 0.057 3.94 583.2
MERCANBANK 2560.1 615.9 1671 0.177 0.054 0.054 3.42 889.1
EXIMBANK 3746.3 1096.6 2257 0.22 0.067 0.067 4.1 1489.3
JAMUNABANK 1765.1 479.4 79 0.222 0.069 0.068 3.65 1686.1
BRACBANK 3314.1 973.5 3242 0.179 0.057 0.056 6.15 72.1
SHAHJABANK 2364.7 817.7 1361 0.227 0.071 0.07 3.64 1003.7
PREMIERBANK 2190.8 650.7 483 0.209 0.069 0.067 3.85 1707.8
TRUSTBANK 1615.4 463.1 1074 0.148 0.05 0.05 3.01 541.4
FIRSTSBANK 1721.2 104.3 189 0.068 0.07 0.069 0.45 1532.2
UCBL 2720 764.7 1775 0.174 0.055 0.055 25.56 945.0
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 5: Data Set for Listed Commercial Banks 2009
Company OI cni ocfbcoal roce rona roa eps accruals
ABBANK 7402.6 3417.2 4715 0.332 0.081 0.077 13.33 2687.6
CITYBANK 2984.4 818.7 1886 0.14 0.055 0.052 5.21 1098.4
IFIC 2410 899.5 1635 0.214 0.057 0.052 5.16 775.0
ISLAMIBANK 10232.5 3403.6 4952 0.169 0.046 0.045 5.51 5280.5
NBL 4995.5 2083 2117 0.233 0.065 0.063 7.32 2878.5
PUBALIBANK 4239.1 2092.2 4086 0.212 0.049 0.047 5.47 153.1
RUPALIBANK 1668.5 2125 -0.30 13.35 -456.5
UTTARABANK 2514.1 1105.2 1994 0.178 0.041 0.04 6.92 520.1
ICIBANK -2063 -7 0.465 -3.1 -2056.2
EBL 3636.4 1454.5 2901 0.173 0.065 0.063 5.83 1274.4
ALARABANK 2300.7 859 3168 0.241 0.062 0.058 4.77 876.7
PRIMEBANK 8007 2848.5 6206 0.241 0.074 0.072 8.01 2424.0
SOUTHEASTB 5964.1 1870.2 2347 0.165 0.059 0.058 5.46 3617.1
DHAKABANK 3455.6 959.4 1248 0.193 0.062 0.056 4.51 2207.6
NCCBANK 4894.6 1719.5 2099 0.285 0.085 0.081 7.53 2795.6
SIBL 1656.5 431.5 943 0.12 0.058 0.056 1.6 713.5
DUTCHBANGLA 3300.6 1137.7 2111 0.261 0.056 0.054 7.58 1189.6
MTBL 2830.6 820.6 1493 0.223 0.066 0.063 4.65 1337.6
STANBANKL 2758.2 764.2 1209 0.181 0.065 0.063 2.89 1549.2
ONEBANKL 2784.9 726.7 1647 0.237 0.073 0.07 4.66 1137.9
BANKASIA 3938.4 1327.2 1691 0.268 0.069 0.065 6.19 2247.4
MERCANBANK 3117.1 807.5 1690 0.189 0.056 0.053 3.74 1427.1
EXIMBANK 5266.6 1683 2412 0.251 0.075 0.074 4.99 2854.6
JAMUNABANK 2628.9 923.1 120 0.232 0.065 0.063 5.69 2508.9
BRACBANK 5118.6 1373.4 2754 0.156 0.071 0.066 6.67 2364.6
SHAHJABANK 3575.5 1070.6 1516 0.217 0.077 0.075 3.91 2059.5
PREMIERBANK 3232.3 1088.3 589 0.235 0.084 0.079 4.85 2643.3
TRUSTBANK 2263.6 610.9 1111 0.163 0.055 0.053 3.31 1152.6
FIRSTSBANK 2011.2 326.8 770 0.114 0.051 0.049 1.42 1241.2
UCBL 3563.7 932.9 2426 0.164 0.05 0.048 7.81 1137.7
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 6: Data Set for Listed Commercial Banks 2010
Company OI cni ocfbcoal roce rona roa eps accruals
ABBANK 7711.2 3989.5 6709 0.282 0.069 0.067 12.45 12.45
CITYBANK 4040.3 1870.2 3605 0.162 0.056 0.055 4.81 4.81
IFIC 2981.1 1647.1 3617 0.286 0.055 0.053 7.56 7.56
ISLAMIBANK 12131.6 4485.5 7158 0.219 0.045 0.044 6.05 6.05
NBL 11137.2 6871.6 4683 0.359 0.096 0.094 15.57 15.57
PUBALIBANK 5693.7 3233.1 4204 0.219 0.054 0.054 6.51 6.51
RUPALIBANK 2058.8 600.3 2342 0.042 0.022 0.024 4.8 4.8
UTTARABANK 3191.3 1551.9 2053 0.181 0.047 0.047 6.48 6.48
ICIBANK -1360 17 0.234 -2.05 -2.05
EBL 4968.7 2514.2 4711 0.205 0.072 0.07 8.61 8.61
ALARABANK 3932.5 1816.1 3860 0.188 0.071 0.07 3.88 3.88
PRIMEBANK 8172.2 3642.8 6954 0.209 0.06 0.059 6.31 6.31
SOUTHEASTB 7021.7 2763.9 2127 0.16 0.061 0.06 3.99 3.99
DHAKABANK 4524.3 1679 1597 0.256 0.068 0.065 6.31 6.31
NCCBANK 5645.4 2371.7 2973 0.253 0.078 0.077 5.27 5.27
SIBL 1104.7 150 381 0.09 0.064 0.063 1.34 1.34
DUTCHBANGLA 2211.4 479.8 1154 0.266 0.064 0.062 23.74 23.74
MTBL 3168.9 988.4 1344 0.226 0.065 0.065 4.66 4.66
STANBANKL 3746 1369 1943 0.243 0.065 0.064 4.31 4.31
ONEBANKL 4136.9 1887.5 2182 0.388 0.084 0.082 9.18 9.18
BANKASIA 4851.7 1929.6 3588 0.273 0.055 0.054 6.43 6.43
MERCANBANK 4453.9 1425.3 2119 0.198 0.059 0.058 3.5 3.5
EXIMBANK 7392.5 3458 4433 0.278 0.076 0.075 5.06 5.06
JAMUNABANK 2988.3 1066 875 0.166 0.048 0.048 4.78 4.78
BRACBANK 5594 2073.1 5673 0.196 0.059 0.057 7.74 7.74
SHAHJABANK 5731.1 2072.3 3368 0.307 0.091 0.09 6.05 6.05
PREMIERBANK 4207.5 1772 2074 0.282 0.078 0.076 6.08 6.08
TRUSTBANK 3187.1 1294.4 1689 0.257 0.063 0.062 5.84 5.84
FIRSTSBANK 2849.8 548.6 840 0.136 0.052 0.052 1.81 1.81
UCBL 5562.3 2179.8 4020 0.279 0.052 0.051 7.49 7.49
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 7: Data Set for Listed Commercial Banks 2011
Company OI cni ocfbcoal roce rona roa eps accruals
ABBANK 5583.3 1390.4 2859 0.093 0.045 0.045 3.77 2724.3
CITYBANK 4973 2056.1 3124 0.115 0.054 0.055 4.07 1849.0
IFIC 2771.2 831.8 2860 0.124 0.039 0.04 3 -88.8
ISLAMIBANK 13001.7 4624.6 10594 0.166 0.041 0.042 4.62 2407.7
NBL 12055.7 6113 5336 0.284 0.085 0.084 7.11 6719.7
PUBALIBANK 5181.1 2265.8 3848 0.135 0.041 0.043 3.38 1333.1
RUPALIBANK 3345.8 1091 4802 0.072 0.03 0.033 7.93 -1456.2
UTTARABANK 3926.8 1650.3 2240 0.171 0.051 0.052 5.74 1686.8
ICIBANK -1796 81 0.236 -2.7 -1877.2
EBL 6426.9 2520.7 3832 0.175 0.065 0.065 5.57 1715.9
ALARABANK 3995.2 1697.7 2889 0.141 0.049 0.05 2.88 135.2
PRIMEBANK 10481.2 3689 6954 0.191 0.06 0.06 4.73 3527.2
SOUTHEASTB 7107.3 1912.2 5175 0.099 0.051 0.051 2.3 1932.3
DHAKABANK 6772.9 2242.6 536 0.241 0.079 0.078 6.25 6236.9
NCCBANK 7049.7 2199 3500 0.19 0.077 0.077 3.7 3549.7
SIBL 3566.6 1032.5 2161 0.11 0.057 0.057 1.61 1405.6
DUTCHBANGLA 4535.6 2154.9 3190 0.241 0.049 0.05 10.77 1345.6
MTBL 2564 404.2 1965 0.084 0.038 0.039 1.59 599.0
STANBANKL 4620.4 1296.5 2249 0.189 0.073 0.072 3.19 2371.4
ONEBANKL 4077.2 1271 2191 0.206 0.073 0.073 3.99 1886.2
BANKASIA 6195.7 2043.3 4151 0.162 0.062 0.061 3.89 2044.7
MERCANBANK 6397.1 1755.7 1592 0.18 0.063 0.063 3.53 4805.1
EXIMBANK 7344.2 2017.7 2790 0.139 0.07 0.07 2.19 4554.2
JAMUNABANK 3703.5 1101.2 256 0.151 0.051 0.051 3.02 3447.5
BRACBANK 6687.3 1812.4 4965 0.173 0.062 0.062 5.64 1722.3
SHAHJABANK 4971.6 1290.2 3437 0.158 0.059 0.059 2.9 1534.6
PREMIERBANK 3938.2 510.9 1174 0.076 0.065 0.065 1.34 2764.2
TRUSTBANK 3577.2 933.4 1788 0.159 0.057 0.057 3.51 1789.2
FIRSTSBANK 3752.2 580.2 1086 0.128 0.051 0.051 1.71 2666.2
UCBL 8755.1 2945.2 4765 0.185 0.066 0.065 4.05 3990.1
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 8: Data Set for Listed Commercial Banks 2012
Company OI cni ocfbcoal roce rona roa eps accruals
ABBANK 6766.2 1461.8 3344 0.09 0.049 0.049 3.3 3422.2
CITYBANK 4160.5 794.5 2139 0.044 0.041 0.042 1.26 2021.5
IFIC 2599.6 416.8 2898 0.06 0.031 0.032 1.2 -298.4
ISLAMIBANK 17491.2 5616.8 11181 0.142 0.044 0.045 4.49 6310.2
NBL 7431.5 1430.8 3844 0.064 0.042 0.043 1.01 3587.5
PUBALIBANK 5544.4 1761.9 3334 0.094 0.037 0.039 2.1 2210.4
RUPALIBANK 3925.7 439.2 2686 0.03 0.032 0.038 2.66 1239.7
UTTARABANK 5378.8 1244.4 171 0.127 0.052 0.053 3.76 5207.8
ICIBANK -1061 1171 0.122 -1.6 -1076.0
EBL 7243.8 2392.7 421 0.139 0.06 0.061 3.91 3411.8
ALARABANK 6735 1945.4 1474 0.138 0.06 0.06 2.73 3846.0
PRIMEBANK 11506.5 2700.4 1171 0.129 0.056 0.056 2.89 4552.5
SOUTHEASTB 8649.5 1648.7 3029 0.083 0.053 0.053 1.89 5620.5
DHAKABANK 6031.6 788.6 651 0.081 0.056 0.056 1.69 5380.6
NCCBANK 6448.6 1450 3097 0.119 0.059 0.06 2.09 3351.6
SIBL 5451.1 1465.2 1980 0.144 0.065 0.065 2.29 3471.1
DUTCHBANGLA 5638.2 2314.1 3165 0.213 0.053 0.054 11.57 2473.2
MTBL 3130.3 327.9 1107 0.068 0.039 0.039 1.29 2023.3
STANBANKL 4899 1251.2 1415 0.102 0.063 0.063 2.57 3484.0
ONEBANKL 4183.8 1120.2 2071 0.153 0.06 0.061 2.7 2112.8
BANKASIA 4078 849.9 3251 0.065 0.035 0.035 1.35 827.0
MERCANBANK 7452.4 1369.8 853 0.125 0.056 0.057 2.24 6599.4
EXIMBANK 9132 2083.1 3329 0.126 0.073 0.073 1.98 5803.0
JAMUNABANK 5041.5 1110.3 0.133 0.054 0.054 2.47 5041.5
BRACBANK 4141.9 699.8 4225 0.061 0.031 0.032 1.82 -83.1
SHAHJABANK 7206.5 1746.2 3001 0.174 0.069 0.069 3.14 4205.5
PREMIERBANK 5066.9 603.4 548 0.084 0.077 0.077 1.3 4518.9
TRUSTBANK 1484.8 182.7 1064 0.027 0.021 0.021 0.53 420.8
FIRSTSBANK 5992 761.9 1354 0.135 0.059 0.06 2.04 4638.0
UCBL 7821 1585.2 2381 0.087 0.048 0.049 1.89 5440.0
Source: Accounting for Capital Market Development (ACMD, 2013)

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 Table 9: Data Set for Listed Non-Banking Financial Institutions -Sample Period: 2007-2012
Company year oi cni ocfbcoal roce rnoa roa eps accruals
MIDAS 2007 91.4 55.2 101.29 0.14824 0.076 0.072 1.9 -9.9
MIDAS 2008 162.5 81.9 120.6 0.186309 0.086 0.083 2.6 41.9
MIDAS 2009 174.5 70.5 0.142499 0.075 0.070 2.0 174.5
MIDAS 2010 311.9 171.5 209.19 0.26087 0.086 0.084 4.2 102.8
MIDAS 2011 186.7 66.4 204.26 0.091736 0.031 0.031 1.2 -17.5
MIDAS 2012 -119.4 104.63 -0.19758 -2.0 -104.6
IDLC 2007 1005 303.3 482.13 0.243162 0.092 0.082 15.2 522.8
IDLC 2008 1298 406.4 598.21 0.2522 0.094 0.088 16.3 699.8
IDLC 2009 1910 821.9 896.36 0.343452 0.112 0.097 27.4 1014.2
IDLC 2010 2563 1327.1 2680.55 0.359619 0.145 0.124 22.1 -117.4
IDLC 2011 1472 500.3 2265.69 0.12568 0.064 0.061 5.1 -793.1
IDLC 2012 2479 712.8 2303.37 0.151881 0.088 0.086 5.8 175.8
ULC 2007 533.7 144.5 414.02 0.139571 0.086 0.081 6.9 119.6
ULC 2008 699.7 153.0 197.4 0.133485 0.108 0.103 6.6 502.3
ULC 2009 684.9 162.1 271.47 0.12842 0.108 0.093 6.1 413.4
ULC 2010 767.1 378.3 356.79 0.233377 0.118 0.104 7.2 410.3
ULC 2011 567.3 213.3 189.42 0.118872 0.084 0.080 2.3 377.9
ULC 2012 785.0 229.0 340.71 0.117181 0.100 0.097 2.1 444.3
UTTARAFIN 2007 891.1 259.2 796.29 0.17633 0.118 0.112 8.2 94.81
UTTARAFIN 2008 837.8 292.1 553.43 0.175193 0.103 0.095 9.2 284.37
UTTARAFIN 2009 1165 495.4 -850.54 0.239616 0.127 0.104 15.6 2015.74
UTTARAFIN 2010 1607 846.0 490.18 0.255589 0.139 0.120 16.0 1117.52
UTTARAFIN 2011 1829 811.3 769.07 0.196884 0.155 0.138 11.0 1060.23
UTTARAFIN 2012 1841 815.0 1796.32 0.165113 0.134 0.126 7.9 44.18
FIRSTLEASE 2007 102.8 198.4 0.176282 5.9 -95.6
FIRSTLEASE 2008 179 111.6 290.02 0.151083 0.135 0.130 5.3 -110.72
FIRSTLEASE 2009 159 104.2 145.06 0.15937 0.131 0.109 4.5 13.44
FIRSTLEASE 2010 231.6 138.7 138.18 0.175057 0.134 0.123 3.4 93.42
FIRSTLEASE 2011 200.5 82.3 66.52 0.0941 0.072 0.073 1.6 133.98
FIRSTLEASE 2012 491.7 176.7 57.39 0.168114 0.120 0.119 2.9 434.31
PLFS 2007 363.7 179.4 236.64 0.260345 0.103 0.101 4.0 127.0
PLFS 2008 348.5 185.7 250.62 0.212347 0.073 0.071 3.1 97.8
PLFS 2009 675.2 355.8 343.5 0.289111 0.097 0.087 4.9 331.7
PLFS 2010 1564 1031.4 1850.85 0.305887 0.128 0.121 9.5 -287.0
PLFS 2011 1205 525.3 702.76 0.134785 0.091 0.089 2.8 502.5
PLFS 2012 1119 323.8 0.078499 0.080 0.080 1.5 1119.3
PRIMEFIN 2007 569.6 197.0 362.26 0.315955 0.159 0.146 6.0 207.3
PRIMEFIN 2008 641.9 286.1 516.71 0.310475 0.145 0.138 6.2 125.2
PRIMEFIN 2009 1182 683.1 647.27 0.374036 0.133 0.123 10.6 534.9
PRIMEFIN 2010 2433 1729.6 2178.41 0.444207 0.231 0.209 19.2 254.6
PRIMEFIN 2011 1588 772.8 1172.66 0.164975 0.128 0.122 4.8 415.4
PRIMEFIN 2012 916.0 300.2 690.4 0.058785 0.073 0.076 1.3 225.6
PREMIERFIN 2007 45.1 45.1 0.115509 0.018 0.020 1.5 45.1
PREMIERFIN 2008 220.7 46.3 51.06 0.106187 0.063 0.062 1.4 169.6
PREMIERFIN 2009 302.3 73.7 108.24 0.142133 0.075 0.070 2.0 194.0

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PREMIERFIN 2010 464.3 136.9 211.96 0.208803 0.107 0.102 3.2 252.4
PREMIERFIN 2011 272.8 72.3 203.71 0.057233 0.050 0.050 0.7 69.0
PREMIERFIN 2012 298.7 25.4 -71.74 0.020425 0.052 0.053 0.2 370.4
ISLAMICFIN 2007 215.4 51.2 28.99 0.81076 0.240 0.228 1.9 186.4
ISLAMICFIN 2008 63.4 77.57 0.168725 2.3 -14.2
ISLAMICFIN 2009 141.6 197.53 0.273556 4.4 -55.9
ISLAMICFIN 2010 355.4 123.9 188.78 0.133542 0.100 0.096 2.1 166.7
ISLAMICFIN 2011 172.8 27.6 149.26 0.028711 0.042 0.042 0.4 23.5
ISLAMICFIN 2012 316.8 502.1 111.46 0.066215 0.070 0.070 0.8 205.3
LANKABANFI 2007 505.8 210.5 369.44 0.434048 0.113 0.109 6.0 136.4
LANKABANFI 2008 943.2 377.6 240.33 0.630766 0.156 0.150 9.8 702.8
LANKABANFI 2009 1512 744.1 901.02 0.354223 0.144 0.128 16.8 610.5
LANKABANFI 2010 2641 1839.3 2147.68 0.358332 0.186 0.163 34.6 493.4
LANKABANFI 2011 1779 859.1 698.06 0.141126 0.100 0.097 10.4 1081.0
LANKABANFI 2012 1813 348.0 -604.51 0.052204 0.085 0.085 1.8 2417.1
BIFC 2007 277.4 77.3 108.25 0.304331 0.158 0.150 2.6 169.1
BIFC 2008 309.2 47.5 43.45 0.10297 0.098 0.096 1.5 265.7
BIFC 2009 506.8 124.1 53.51 0.224449 0.126 0.119 3.4 453.3
BIFC 2010 672.7 206.2 41.43 0.271521 0.126 0.121 4.7 631.3
BIFC 2011 160.0 117.8 161.37 0.01937 0.026 0.026 0.3 -1.4
BIFC 2012 111.1 9.8 97.64 0.008252 0.016 0.016 0.2 13.5
IPDC 2007 133.5 245.98 0.079811 2.1 -112.5
IPDC 2008 103.9 -4.35 0.059565 1.5 108.3
IPDC 2009 390.7 110.7 228.39 0.059964 0.082 0.072 1.4 162.3
IPDC 2010 325.3 132.9 224.62 0.067155 0.070 0.066 1.5 100.7
IPDC 2011 457.2 111.7 218.97 0.058827 0.094 0.093 1.2 238.2
IPDC 2012 661.2 128.6 241.63 0.063437 0.115 0.116 1.2 419.6
UNIONCAP 2007 173.3 73.1 71.44 0.030868 0.079 0.079 2.7 101.9
UNIONCAP 2008 290.8 84.8 44.06 0.173243 0.086 0.082 2.4 246.8
UNIONCAP 2009 410.5 163.2 228.39 0.249939 0.084 0.074 3.9 182.1
UNIONCAP 2010 867.5 570.9 464.95 0.330162 0.136 0.118 10.5 402.5
UNIONCAP 2011 458.8 178.3 161.1 0.093468 0.060 0.058 1.9 297.7
UNIONCAP 2012 492.8 56.7 22.23 0.030338 0.060 0.062 0.5 470.6
BFIC 2007 304.6 94.6 117.36 0.223958 0.211 0.211 3.1 187.2
BFIC 2008 259.8 64.3 76.94 0.136431 0.137 0.132 1.9 182.9
BFIC 2009 249.2 80.5 157.98 0.145805 0.103 0.096 2.2 91.2
BFIC 2010 471.0 246.1 453.44 0.263929 0.143 0.133 5.6 17.6
BFIC 2011 9.9 76.44 0.010542 0.2 -66.5
BFIC 2012 353.1 39.9 119.06 0.041764 0.069 0.068 0.7 234.1
ILFS 2007 887.3 117.8 75.31 0.170642 0.111 0.108 5.1 812.0
ILFS 2008 1121 111.4 183.87 0.169477 0.114 0.113 4.4 937.2
ILFS 2009 1163 205.1 395.97 0.221852 0.100 0.094 7.0 766.6
ILFS 2010 1080 343.1 705.48 0.27072 0.079 0.076 6.7 374.2
ILFS 2011 873.8 129.7 -279.68 0.065867 0.064 0.064 1.6 1153.5
ILFS 2012 1089 59.3 168.82 0.028433 0.078 0.077 0.3 920.1
PHOENIXFIN 2007 492.3 104.7 168.36 0.182404 0.088 0.084 3.1 324.0
PHOENIXFIN 2008 476.2 107.4 178.94 0.176903 0.078 0.075 3.2 297.3
PHOENIXFIN 2009 510.7 124.1 148.29 0.191944 0.069 0.063 3.7 362.4
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PHOENIXFIN 2010 907.9 233.2 281.55 0.14526 0.102 0.095 4.4 626.4
PHOENIXFIN 2011 1230 269.6 53.87 0.143989 0.126 0.121 3.8 1176.5
PHOENIXFIN 2012 1423 271.1 173.02 0.126568 0.136 0.132 2.9 1249.5
FAS 2007 61.3 53.7 0.113693 0.067 0.065 1.4 61.3
FAS 2008 90.5 47.7 57.27 0.091587 0.083 0.081 1.2 33.3
FAS 2009 136.9 85.6 110.63 0.153049 0.118 0.103 2.2 26.2
FAS 2010 179.4 91.7 98.45 0.093096 0.079 0.077 2.0 81.0
FAS 2011 35.2 7.9 -39.42 0.008194 0.016 0.016 0.2 74.7
FAS 2012 146.1 22.8 19.61 0.023327 0.056 0.059 0.4 126.5
BAYLEASING 2007 0.0
BAYLEASING 2008 453.6 45.0 -206.23 0.106607 0.128 0.127 4.4 659.8
BAYLEASING 2009 499.3 156.6 148.16 0.194971 0.105 0.101 7.7 351.1
BAYLEASING 2010 955.5 614.8 347.84 0.247013 0.212 0.194 10.0 607.7
BAYLEASING 2011 563.2 263.2 127.85 0.089057 0.098 0.098 2.8 435.3
BAYLEASING 2012 333.7 82.1 206.16 0.028226 0.056 0.059 0.7 127.5
ICB 2007 1688 460.7 0.247109 0.246 0.171 9.2 1688.2
ICB 2008 3005 1571.5 0.559329 0.531 0.308 31.4 3004.7
ICB 2009 3160 1658.3 838.07 0.314042 0.342 0.198 16.6 2322.3
ICB 2010 4437 3056.7 1637.02 0.369532 0.385 0.221 15.3 2800.1
ICB 2011 6615 5099.5 6618.13 0.169806 0.157 0.147 20.4 -3.3
ICB 2012 7736 4625.9 5771.16 0.178008 0.181 0.171 13.7 1964.5
GSPF 2010 208.7 75.5 113.89 0.106654 0.089 0.083 3.5 94.8
GSPF 2011 172.9 32.9 38.87 0.044427 0.073 0.071 1.2 134.1
GSPF 2012 234.7 98.7 127.54 0.073656 0.082 0.081 1.9 107.2
DBH 2008 724.8 176.5 379.11 0.209322 0.071 0.071 4.2 345.7
DBH 2009 937.7 233.9 620.01 0.219213 0.068 0.068 4.6 317.7
DBH 2010 1050 307.4 757.44 0.235664 0.060 0.058 7.6 292.6
DBH 2011 1498 502.1 933.45 0.285853 0.074 0.073 10.0 564.9
DBH 2012 1713 404.2 728.62 0.187921 0.077 0.076 4.0 984.2
NATIONALH 2007 252.6 74.4 401.01 0.119861 0.087 0.081 1.9 -148.4
NATIONALH 2008 415.9 88.1 135.64 0.125907 0.133 0.124 1.7 280.3
NATIONALH 2009 331.9 104.1 81.46 0.138071 0.095 0.088 2.0 250.4
NATIONALH 2010 394.3 162.0 238.66 0.200087 0.100 0.095 3.1 155.7
NATIONALH 2011 370.5 116.2 161.93 0.125649 0.091 0.087 2.0 208.6
NATIONALH 2012 290.1 41.4 160.81 0.045281 0.071 0.070 0.6 129.3
Source: Accounting for Capital Market Development (ACMD)

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Table 10: Non-Banking Financial Institutions Average Data (From 20072012)
Year OI cni ocfbcoal roce rona roa eps accruals
2007 491.62 144.11 261.07 0.23 0.12 0.11 4.67 232.46
2008 656.74 212.00 189.23 0.20 0.13 0.11 5.74 421.9452
2009 936.12 390.49 318.03 0.22 0.13 0.10 7.52 595.3943
2010 1113.07 625.6 718.97 0.24 0.13 0.12 8.93 394.1518
2011 1033.7 489.52 666.10 0.10 0.08 0.08 3.90 321.1459
2012 1173.52 416.09 598.30 0.069 0.09 0.08 2.25 549.0132
Source: Accounting for Capital Market Development (ACMD, 2013)

Table 11: Data Set for Listed Non-Banking Financial Institutions -2007
Company OI cni ocfbcoal roce rona roa eps accruals
MIDAS 91.4 55.2 101.29 0.14824 0.076 0.072 1.9 -9.9
IDLC 1005 303.3 482.13 0.24316 0.092 0.082 15.2 522.8
ULC 533.7 144.5 414.02 0.13957 0.086 0.081 6.9 119.6
UTTARAFIN 891.1 259.2 796.29 0.17633 0.118 0.112 8.2 94.81
FIRSTLEASE 102.8 198.4 0.17628 5.9 -95.6
PLFS 363.7 179.4 236.64 0.26035 0.103 0.101 4 127
PRIMEFIN 569.6 197 362.26 0.31596 0.159 0.146 6 207.3
PREMIERFIN 45.1 45.1 0.11551 0.018 0.02 1.5 45.1
ISLAMICFIN 215.4 51.2 28.99 0.81076 0.24 0.228 1.9 186.4
LANKABANFI 505.8 210.5 369.44 0.43405 0.113 0.109 6 136.4
BIFC 277.4 77.3 108.25 0.30433 0.158 0.15 2.6 169.1
IPDC 133.5 245.98 0.07981 2.1 -112.5
UNIONCAP 173.3 73.1 71.44 0.03087 0.079 0.079 2.7 101.9
BFIC 304.6 94.6 117.36 0.22396 0.211 0.211 3.1 187.2
ILFS 887.3 117.8 75.31 0.17064 0.111 0.108 5.1 812
PHOENIXFIN 492.3 104.7 168.36 0.1824 0.088 0.084 3.1 324
FAS 61.3 53.7 0.11369 0.067 0.065 1.4 61.3
BAYLEASING
ICB 1688 460.7 0.24711 0.246 0.171 9.2 1688.2
GSPF
DBH
NATIONALH 252.6 74.4 401.01 0.11986 0.087 0.081 1.9 -148.4
Source: Accounting for Capital Market Development (ACMD, 2013)

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Table 12: Data Set for Listed Non-Banking Financial Institutions -2008
Company OI cni ocfbcoal roce rona roa eps accruals
MIDAS 162.5 81.9 120.6 0.18631 0.086 0.083 2.6 41.9
IDLC 1298 406.4 598.21 0.2522 0.094 0.088 16.3 699.8
ULC 699.7 153 197.4 0.13349 0.108 0.103 6.6 502.3
UTTARAFIN 837.8 292.1 553.43 0.17519 0.103 0.095 9.2 284.37
FIRSTLEASE 179 111.6 290.02 0.15108 0.135 0.13 5.3 -110.72
PLFS 348.5 185.7 250.62 0.21235 0.073 0.071 3.1 97.8
PRIMEFIN 641.9 286.1 516.71 0.31048 0.145 0.138 6.2 125.2
PREMIERFIN 220.7 46.3 51.06 0.10619 0.063 0.062 1.4 169.6
ISLAMICFIN 63.4 77.57 0.16873 2.3 -14.2
LANKABANFI 943.2 377.6 240.33 0.63077 0.156 0.15 9.8 702.8
BIFC 309.2 47.5 43.45 0.10297 0.098 0.096 1.5 265.7
IPDC 103.9 -4.35 0.05957 1.5 108.3
UNIONCAP 290.8 84.8 44.06 0.17324 0.086 0.082 2.4 246.8
BFIC 259.8 64.3 76.94 0.13643 0.137 0.132 1.9 182.9
ILFS 1121 111.4 183.87 0.16948 0.114 0.113 4.4 937.2
PHOENIXFIN 476.2 107.4 178.94 0.1769 0.078 0.075 3.2 297.3
FAS 90.5 47.7 57.27 0.09159 0.083 0.081 1.2 33.3
BAYLEASING 453.6 45 -206.23 0.10661 0.128 0.127 4.4 659.8
ICB 3005 1571.5 0.55933 0.531 0.308 31.4 3004.7
GSPF
DBH 724.8 176.5 379.11 0.20932 0.071 0.071 4.2 345.7
NATIONALH 415.9 88.1 135.64 0.12591 0.133 0.124 1.7 280.3
Source: Accounting for Capital Market Development (ACMD, 2013)

Table 13: Data Set for Listed Non-Banking Financial Institutions -2009
Company OI cni ocfbcoal roce rona roa eps accruals
MIDAS 174.5 70.5 0.1425 0.075 0.07 2 174.5
IDLC 1910 821.9 896.36 0.34345 0.112 0.097 27.4 1014.2
ULC 684.9 162.1 271.47 0.12842 0.108 0.093 6.1 413.4
UTTARAFIN 1165 495.4 -850.54 0.23962 0.127 0.104 15.6 2015.74
FIRSTLEASE 159 104.2 145.06 0.15937 0.131 0.109 4.5 13.44
PLFS 675.2 355.8 343.5 0.28911 0.097 0.087 4.9 331.7
PRIMEFIN 1182 683.1 647.27 0.37404 0.133 0.123 10.6 534.9
PREMIERFIN 302.3 73.7 108.24 0.14213 0.075 0.07 2 194
ISLAMICFIN 141.6 197.53 0.27356 4.4 -55.9
LANKABANFI 1512 744.1 901.02 0.35422 0.144 0.128 16.8 610.5
BIFC 506.8 124.1 53.51 0.22445 0.126 0.119 3.4 453.3
IPDC 390.7 110.7 228.39 0.05996 0.082 0.072 1.4 162.3
UNIONCAP 410.5 163.2 228.39 0.24994 0.084 0.074 3.9 182.1
BFIC 249.2 80.5 157.98 0.14581 0.103 0.096 2.2 91.2
ILFS 1163 205.1 395.97 0.22185 0.1 0.094 7 766.6
PHOENIXFIN 510.7 124.1 148.29 0.19194 0.069 0.063 3.7 362.4
FAS 136.9 85.6 110.63 0.15305 0.118 0.103 2.2 26.2
BAYLEASING 3160 1658.3 838.07 0.31404 0.342 0.198 16.6 2322.3
ICB 3160 1658.3 838.07 0.31404 0.342 0.198 16.6 2322.3
GSPF
DBH 937.7 233.9 620.01 0.21921 0.068 0.068 4.6 317.7
NATIONALH 331.9 104.1 81.46 0.13807 0.095 0.088 2 250.4
Source: Accounting for Capital Market Development (ACMD, 2013)

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Table 14: Data Set for Listed Non-Banking Financial Institutions -2010
Company OI cni ocfbcoal roce rona roa eps accruals
MIDAS 311.9 171.5 209.19 0.26087 0.086 0.084 4.2 102.8
IDLC 2563 1327.1 2680.55 0.35962 0.145 0.124 22.1 -117.4
ULC 767.1 378.3 356.79 0.23338 0.118 0.104 7.2 410.3
UTTARAFIN 1607 846 490.18 0.25559 0.139 0.12 16 1117.52
FIRSTLEASE 231.6 138.7 138.18 0.17506 0.134 0.123 3.4 93.42
PLFS 1564 1031.4 1850.85 0.30589 0.128 0.121 9.5 -287
PRIMEFIN 2433 1729.6 2178.41 0.44421 0.231 0.209 19.2 254.6
PREMIERFIN 464.3 136.9 211.96 0.2088 0.107 0.102 3.2 252.4
ISLAMICFIN 355.4 123.9 188.78 0.13354 0.1 0.096 2.1 166.7
LANKABANFI 2641 1839.3 2147.68 0.35833 0.186 0.163 34.6 493.4
BIFC 672.7 206.2 41.43 0.27152 0.126 0.121 4.7 631.3
IPDC 325.3 132.9 224.62 0.06716 0.07 0.066 1.5 100.7
UNIONCAP 867.5 570.9 464.95 0.33016 0.136 0.118 10.5 402.5
BFIC 471 246.1 453.44 0.26393 0.143 0.133 5.6 17.6
ILFS 1080 343.1 705.48 0.27072 0.079 0.076 6.7 374.2
PHOENIXFIN 907.9 233.2 281.55 0.14526 0.102 0.095 4.4 626.4
FAS 179.4 91.7 98.45 0.0931 0.079 0.077 2 81
BAYLEASING 955.5 614.8 347.84 0.24701 0.212 0.194 10 607.7
ICB 4437 3056.7 1637.02 0.36953 0.385 0.221 15.3 2800.1
GSPF 208.7 75.5 113.89 0.10665 0.089 0.083 3.5 94.8
DBH 1050 307.4 757.44 0.23566 0.06 0.058 7.6 292.6
NATIONALH 394.3 162 238.66 0.20009 0.1 0.095 3.1 155.7
Source: Accounting for Capital Market Development (ACMD, 2013)

Table 15: Data Set for Listed Non-Banking Financial Institutions -2011
Company OI cni ocfbcoal roce rona roa eps accruals
MIDAS 186.7 66.4 204.26 0.09174 0.031 0.031 1.2 -17.5
IDLC 1472 500.3 2265.69 0.12568 0.064 0.061 5.1 -793.1
ULC 567.3 213.3 189.42 0.11887 0.084 0.08 2.3 377.9
UTTARAFIN 1829 811.3 769.07 0.19688 0.155 0.138 11 1060.23
FIRSTLEASE 200.5 82.3 66.52 0.0941 0.072 0.073 1.6 133.98
PLFS 1205 525.3 702.76 0.13479 0.091 0.089 2.8 502.5
PRIMEFIN 1588 772.8 1172.66 0.16498 0.128 0.122 4.8 415.4
PREMIERFIN 272.8 72.3 203.71 0.05723 0.05 0.05 0.7 69
ISLAMICFIN 172.8 27.6 149.26 0.02871 0.042 0.042 0.4 23.5
LANKABANFI 1779 859.1 698.06 0.14113 0.1 0.097 10.4 1081
BIFC 160 117.8 161.37 0.01937 0.026 0.026 0.3 -1.4
IPDC 457.2 111.7 218.97 0.05883 0.094 0.093 1.2 238.2
UNIONCAP 458.8 178.3 161.1 0.09347 0.06 0.058 1.9 297.7
BFIC 9.9 76.44 0.01054 0.2 -66.5
ILFS 873.8 129.7 -279.68 0.06587 0.064 0.064 1.6 1153.5
PHOENIXFIN 1230 269.6 53.87 0.14399 0.126 0.121 3.8 1176.5
FAS 35.2 7.9 -39.42 0.00819 0.016 0.016 0.2 74.7
BAYLEASING 563.2 263.2 127.85 0.08906 0.098 0.098 2.8 435.3
ICB 6615 5099.5 6618.13 0.16981 0.157 0.147 20.4 -3.3
GSPF 172.9 32.9 38.87 0.04443 0.073 0.071 1.2 134.1
DBH 1498 502.1 933.45 0.28585 0.074 0.073 10 564.9
NATIONALH 370.5 116.2 161.93 0.12565 0.091 0.087 2 208.6
Source: Accounting for Capital Market Development (ACMD, 2013)

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Table 16: Data Set for Listed Non-Banking Financial Institutions -2012
Company OI cni ocfbcoal roce rona roa eps accruals
MIDAS -119.4 104.63 -0.1976 -2 -104.6
IDLC 2479 712.8 2303.37 0.15188 0.088 0.086 5.8 175.8
ULC 785 229 340.71 0.11718 0.1 0.097 2.1 444.3
UTTARAFIN 1841 815 1796.32 0.16511 0.134 0.126 7.9 44.18
FIRSTLEASE 491.7 176.7 57.39 0.16811 0.12 0.119 2.9 434.31
PLFS 1119 323.8 0.0785 0.08 0.08 1.5 1119.3
PRIMEFIN 916 300.2 690.4 0.05879 0.073 0.076 1.3 225.6
PREMIERFIN 298.7 25.4 -71.74 0.02043 0.052 0.053 0.2 370.4
ISLAMICFIN 316.8 502.1 111.46 0.06622 0.07 0.07 0.8 205.3
LANKABANFI 1813 348 -604.51 0.0522 0.085 0.085 1.8 2417.1
BIFC 111.1 9.8 97.64 0.00825 0.016 0.016 0.2 13.5
IPDC 661.2 128.6 241.63 0.06344 0.115 0.116 1.2 419.6
UNIONCAP 492.8 56.7 22.23 0.03034 0.06 0.062 0.5 470.6
BFIC 353.1 39.9 119.06 0.04176 0.069 0.068 0.7 234.1
ILFS 1089 59.3 168.82 0.02843 0.078 0.077 0.3 920.1
PHOENIXFIN 1423 271.1 173.02 0.12657 0.136 0.132 2.9 1249.5
FAS 146.1 22.8 19.61 0.02333 0.056 0.059 0.4 126.5
BAYLEASING 333.7 82.1 206.16 0.02823 0.056 0.059 0.7 127.5
ICB 7736 4625.9 5771.16 0.17801 0.181 0.171 13.7 1964.5
GSPF 234.7 98.7 127.54 0.07366 0.082 0.081 1.9 107.2
DBH 1713 404.2 728.62 0.18792 0.077 0.076 4 984.2
NATIONALH 290.1 41.4 160.81 0.04528 0.071 0.07 0.6 129.3
Source: Accounting for Capital Market Development (ACMD, 2013)

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