25574 Student Lect 03 Perfomance.pdf - Bank performance evaluation 25574 Lecture 3 Banl Perfomance Commercial Bank Management Slide 2 Learning

25574 Student Lect 03 Perfomance.pdf - Bank performance...

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Bank performance evaluation
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Learning Objectives -Bank performance evaluation What are the problems in ratio analysis What are the important ratios in analysing a bank Breaking down ROE to evaluate performance Need to be able to interpret the ratios not just calculate the values In your exam you may be asked to calculate ratios but the ratios will be provided on a formula page. Commercial Bank Management 25574 Lecture 3 Banl Perfomance Slide 2
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Introduction to banks financial statements Goal of bank management is maximising shareholders’ wealth As for any other for-profit business Need to invest in assets that generate highest gross yields (hence increase risk) and/or lower operating costs to keep costs down Aim: maximise shareholder wealth Commercial Bank Management 25574 Lecture 3 Banl Perfomance Slide 3
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