Analyzing Bank Records Form

Instructions and help about Analyzing Bank Records

okay so these are the common ratios when it comes to analyzing the financial statements of banks last meeting i told you to do the following calculations return on equity efficiency ratio npl ratio and the loan to deposit ratio ldr this is called the simple bank and everything here is highly simplified the left side of the balance sheet is your assets the right side is reliabilities and equity then you have the income statement starting off with interest income until its net earnings the profit or loss okay so what did they ask you to calculate number one is the return on equity return on equity is calculated as net income over average equity what is net income the net income of this bank is 560 000 pesos equity the average equity that's four plus 13 in 2017 four plus 15 in 2016 so 4 plus 13 is 17 4 plus 15 is 19 the average of the two is 18 million 560 000 divided by 18 million the earnings is only 3.81 sorry sorry the earnings is only 3.11 of the equity investment so put yourself fro