Bank
performance evaluation
Learning Objectives -Bank performance evaluation
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What are the problems in ratio analysis
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What are the important ratios in analysing a bank
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Breaking down ROE to evaluate performance
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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
Introduction to banks financial statements
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Goal of bank management is maximising shareholders’ wealth
As for any other for-profit business
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Need to invest in assets that generate highest gross yields (hence
increase risk) and/or lower operating costs to keep costs down
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Aim: maximise shareholder wealth
Commercial Bank Management
25574 Lecture 3 Banl Perfomance
Slide 3
