Fundamental Analysis of DSE Listed Islamic Banks in Bangladesh

Abstract

Fundamental Analysis provides more pertinent information regarding the profitability and growth of the firm which assists the investors to make informative investment decisions. The aim of this study is to conduct fundamental analysis of some DSE-listed Islamic banks in Bangladesh and to find out the significant differences among selected variables. EPS, P/E Ratio, P/B Ratio, ROE, Dividend Yield, and Dividend Payout Ratio are the chosen variables to conduct fundamental analysis. Secondary data from the annual reports of the selected Islamic Banks in Bangladesh from 2013 to 2020 have been used. Collected data have been analyzed using descriptive statistics and inferential statistics such as Mean, Standard Deviation, and ANOVA analysis. The outcome of the study reveals that Al-Arafah Islami Bank has better ROE followed by Shajalal Islami Bank and EXIM Bank. Al-Arafah Islami Bank
has the highest average dividend yield and dividend payout ratio followed by EXIM Bank, First Security Islami bank. Shajalal Islami Bank holds the highest average P/B ratio followed by Al-Arafah Islami Bank. Islami bank has the highest average EPS of 2.92. Lastly, Shajalal Islami Bank has the highest average P/E ratio. The study also reveals that there are the momentous differences among
selected variables. This study will help the investors to adopt the relevant investment decisions and the selected Islamic Banks management will be able to improve their performance through adopting the suggested recommendations.