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Project•Compare financial result of two banks from the same country•financial data from last 5 years, •BankScope•7 minutes of presentation (21.11), only 10 groups (email before 19.11)•Report (21.11): printed presentation, names of group member, conclusions, additional information •3 people in one group.
Assets:• Loan Loss Provision: Loan Loss Provision is an expense set aside as an allowance for bad loans (as a way to cover for anticipated loan losses).• Noninterest Income: ‐Non-interest income gives a measure of the revenue side of the bank’s performance relative to the assets invested.• Noninterest Expense: ‐Non-interest expense or overhead plus provisions gives a measure of the cost side of the bank’s performance relative to the assets invested.
Assets:• Pretax Income‐: This is a measure of the operating performance of the bank before tax and unusual items. This is a good measure of profitability unaffected by non-trading activities.• Taxes (& nonoperatng items): ‐This ratio measures costs and tax as a percentage of assets.• Net Income: “Net Income” is equal to “Pre-tax Income” minus “Taxes”.
CREDIT QUALITY:Net ChargeOfs as % of Avg Gross Loans: ‐Net charge off or the amount writenof from loan loss reserves less recoveries is measured at a ‐percentage of the gross loans. It indicates what percentage of today’s loans have been finally been written off the books. The lower this figure,