Given the following information on Bank A and on its peer group, comment on the strengths and weaknesses of the bank. Wh
Posted: Sun Jun 05, 2022 7:31 am
Given the following information on Bank A and on its peer group,
comment on the strengths and weaknesses of the bank.
What additional information would you want in order to conduct a
more in-depth analysis?
Bank A
Peer Group
For the Year Ended
12/31/xx
12/31/xx
Profitability
ROA
0,01%
0,75%
ROE
0,24%
14,63%
Earning assets / Total assets
89,03%
92,34%
Noninterest expenses/Average assets
1,90%
1,72%
Yield on interest earning assets
7,28%
8,27%
Yield on interest bearing liabilities
4,54%
3,86%
Gross interest spread
2,72%
4,21%
Interest income/Total average assets
6,44%
7,64%
Interest expense/Total average liabilities & equity
4,23%
3,66%
Net interest spread
2,21%
3,98%
Capital position
Equity/Total assets
4,63%
6,82%
comment on the strengths and weaknesses of the bank.
What additional information would you want in order to conduct a
more in-depth analysis?
Bank A
Peer Group
For the Year Ended
12/31/xx
12/31/xx
Profitability
ROA
0,01%
0,75%
ROE
0,24%
14,63%
Earning assets / Total assets
89,03%
92,34%
Noninterest expenses/Average assets
1,90%
1,72%
Yield on interest earning assets
7,28%
8,27%
Yield on interest bearing liabilities
4,54%
3,86%
Gross interest spread
2,72%
4,21%
Interest income/Total average assets
6,44%
7,64%
Interest expense/Total average liabilities & equity
4,23%
3,66%
Net interest spread
2,21%
3,98%
Capital position
Equity/Total assets
4,63%
6,82%