Banku2019s Analysis (1) - Banks Analysis Project Compare...

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Bank’s Analysis
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). Non interest Income: Non-interest income gives a measure of the revenue side of the bank’s performance relative to the assets invested. Non interest 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: Pre tax 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 (& non operatng 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 Charge Ofs as % of Avg Gross Loans: Net charge off or the amount writen of 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,

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