Profitability Analysis of Mobile Financial Service Providers in Bangladesh: Empirical Study on bKash

Abstract

Mobile financial service is an important tool of financial inclusion. It plays significant role to the national economy of Bangladesh. The study aims to analyze the profitability performance of mobile financial service providers in Bangladesh with special reference to bKash. The study covers a period of 08 (eight) financial and operational years from 2013 to 2020. Data collected for the purpose from secondary sources and used descriptive statistical tools like mean, standard deviation, coefficient of variation, F statistics, related financial ratios, and least square method to fit straight line trend to evaluate the profitability performance. The ratio analysis shows that profitability performance during the year 2014 to 2017 was sound but rest of the years under study period were negative. The trend analysis results that trend in income and expenditure of bKash are upward but trend in profit and profitability are downward during the study period. The study finds that there is no significant difference of profitability performance between first four years and last four years. The study recommends that bKash should increase diversified income level to improve profitability performance and healthy financial position in the long run.