Credit Report : NIB, HBL and DIBPL

Abstract

This project is based on the dupont analysis of three private sector banks of Pakistan which are NIB, DUBAI ISLAMIC, and HBL. I have applied all the ratios of dupont analytical approach in order to check the performance of the bank. Dupont Analysis is a method of performance measurement that was started by the DuPont Corporation in the 1920s. With this method, assets are measured at their gross book value rather than at net book value in order to produce a higher return on equity (ROE). It is also known as "DuPont identity". DuPont analysis tells us that ROE is affected by three things: - Operating efficiency, which is measured by profit margin - Asset use efficiency, which is measured by total asset turnover - Financial leverage, which is measured by the equity multiplier