Who would be interested in evaluating the banks performance?
- bank management
- competitor financial institutions
- shareholders/investors
- regulators and the community
What can be looked at to review internal bank performance?
- bank planning
- technology
- personnel development
- banks financial condition
What can be looked at to review external performance?
- market share
- regulatory compliance
- public and investor confidence
What is included in a financial analysis?
- profitability & performance ratios
- risk measures
e. g. ROE, ROA, Capital adequacy
What are other measures of quantitative assessment?
- share market data and ratings
How does a quantitative assessment help bank management?
- provides measures of past performance
- enables modeling for future planning periods
What indicators are included in non-financial analysis?
- market perceptions
- range of products and services
- corporate citizenship or quality of management
- staff morale
How does a qualitative assessment help bank management?
- indicates non-financial performance
- validates financial analysis of performance
- contributes to modeling for future planning
What does the balance sheet show (statement of financial position)?
- the banks financial state at a point in time
- assets, liabilities and net worth
what does the income statement show (statement of financial performance)?
- bank’s major categories of revenue and expenses over a period of time
what does the statement of changes in equity show?
- items which impact on the bank’s equity
- share transactions, changes in reserves, retained profits and dividend payments
financial reports provide absolute data (dollar values) such as:
- total assets and liabilities
- liquid assets
- loans and deposits
- equity
- net income, interest revenue,interest expense
- bad debts
- derivatives
