1. Calculate ROA model? (total asset, total average asset, net income before tax, return on average asser, operating revenue, NI before tax, asset utilization, net profit margin, pre tax return on average assets)

2. Calculate ROE model? (total equity, total average equity, net income before tax, pre tax return on average equity, and NPM, AU, EM, pre-tax return on average equity, operating income, tax management efficiency, expense control efficiency asset efficiency, funds efficiency, pre-tax return on average equity)

Transcribed image text: LBP Million Period ended... Growth 31 Dec 17 Description Amount 31 Dec 18 % Interest income 1,251,273 1,454,379 203,107 16.23% (Less) Taxes on Interest 683.07% (6,553) (808,197) (51,317) (952,616) (44,764) (144,419) Interest expense 17.87% Net interest Income 436,522 450,446 13,924 3.19% Net fee & commission income 137,322 140,638 3,315 2.41% Interest income on FVTPL assets 100,033 79,648 (20,385) -20.38% Other gains on FVTPL assets 428 641 214 49.93% Other non-interest income 18.709 34,754 16.045 85.76% Operating income 693,014 706,127 13,113 1.89% Impairment losses (net) (22,009) 1,567 23,576 -107.12% Other Provisions (9,553) (7,170) 2,384 -24.95% Net operating income 661,452 700,524 39,072 5.91% Operating Expenses (305,813) (331,456) (25,643) 8.39% Operating Profit 355,639 369 068 13,429 3.78% Income taxes (47.483) (57,420) (9.937) 20.93% Net profit after tax 308,156 311,647 3,492 1.13% Non-controlling interest (72,631) (51,751) 20.879 -28.75% Net profit (Equity holders) 235,525 259.896 24,371 10.35% Profitability Overview The consolidated total net profit after tax increased in 2018 by 1.13% to LBP 311.6 billion, compared to LBP 308.2 billion for the year 2017. This growth in profitability was driven by growth in business activities, coupled with efficient management of interest rate margins, high commission base and effective cost containment policy, with a focus on consistently increasing the operating noninterest base revenues. The positive growth in the net earnings was due to: Increase in "Net Interest Income" by LBP 13.9 billion (+3.19%) after accounting for LBP 44.8 billion of taxes on interests for full year 2018 as compared to LBP 6.6 billion for year 2017 due to the fact the new tax regulation has been effective 27/10/2017. Decrease in "Interest Income from Financial Assets at FVTPL" by LBP 20.4 billion (-20.38%) due to decline in investment funds managed by the group during 2018 Increase in "Net fee and commission income" by LBP 3.3 billion (+2.41%) Increase in "Other non-interest income" by LBP 16.0 billion (+85.76%) which resulted largely from the income increase in FX gains and .... Decrease in "Impairment losses" by LBP 23.6 billion, due to significant write-back of provisions against non-performing loans. Increase in "Operating Expenses" by LBP 25.6 billion (+8.39%) After accounting for the non-controlling interest (mainly the net profit from controlled Mutual Funds), the Net Profit for the equity holders registered a remarkable increase by LBP 24.4 billon (+10.35%). 2018 2017 Notes 7,137,979,450 6,576,913,590 December 31st - LBP'000 Assets Cash and deposits at central banks Assets under leverage arrangement with the Central Bank of Lebanon Deposits with banks and financial institutions Financial assets at fair value through profit or loss EN 823,039 258 152,048,750 7 1,641.968,614 1,547,299,126 8 1,315,922,850 1,507,433,409 Loans to banks 255,316,224 292,410,807 Loans and advances to customers 8,555,503,383 8,445, 100,947 Loans and advances to related parties 125,277,446 128,160,657 Investment securities 7,677,716,311 8.172,896,908 Customers' liability under acceptances 399,604,145 357,494,071 Investment in an associate 23,009,057 41,535,338 Assets acquired in satisfaction of loans 24.566.718 22,742,704 Property and equipment 280,703,585 Goodwill 295.172,636 38,466,704 1 88,564,254 Other assets 93,462,327 73,049.675 Total Assets 28,457,005,123 27,686,353,821 Transcribed image text: LBP Million Period ended... Growth 31 Dec 17 Description Amount 31 Dec 18 % Interest income 1,251,273 1,454,379 203,107 16.23% (Less) Taxes on Interest 683.07% (6,553) (808,197) (51,317) (952,616) (44,764) (144,419) Interest expense 17.87% Net interest Income 436,522 450,446 13,924 3.19% Net fee & commission income 137,322 140,638 3,315 2.41% Interest income on FVTPL assets 100,033 79,648 (20,385) -20.38% Other gains on FVTPL assets 428 641 214 49.93% Other non-interest income 18.709 34,754 16.045 85.76% Operating income 693,014 706,127 13,113 1.89% Impairment losses (net) (22,009) 1,567 23,576 -107.12% Other Provisions (9,553) (7,170) 2,384 -24.95% Net operating income 661,452 700,524 39,072 5.91% Operating Expenses (305,813) (331,456) (25,643) 8.39% Operating Profit 355,639 369 068 13,429 3.78% Income taxes (47.483) (57,420) (9.937) 20.93% Net profit after tax 308,156 311,647 3,492 1.13% Non-controlling interest (72,631) (51,751) 20.879 -28.75% Net profit (Equity holders) 235,525 259.896 24,371 10.35% Profitability Overview The consolidated total net profit after tax increased in 2018 by 1.13% to LBP 311.6 billion, compared to LBP 308.2 billion for the year 2017. This growth in profitability was driven by growth in business activities, coupled with efficient management of interest rate margins, high commission base and effective cost containment policy, with a focus on consistently increasing the operating noninterest base revenues. The positive growth in the net earnings was due to: Increase in "Net Interest Income" by LBP 13.9 billion (+3.19%) after accounting for LBP 44.8 billion of taxes on interests for full year 2018 as compared to LBP 6.6 billion for year 2017 due to the fact the new tax regulation has been effective 27/10/2017. Decrease in "Interest Income from Financial Assets at FVTPL" by LBP 20.4 billion (-20.38%) due to decline in investment funds managed by the group during 2018 Increase in "Net fee and commission income" by LBP 3.3 billion (+2.41%) Increase in "Other non-interest income" by LBP 16.0 billion (+85.76%) which resulted largely from the income increase in FX gains and .... Decrease in "Impairment losses" by LBP 23.6 billion, due to significant write-back of provisions against non-performing loans. Increase in "Operating Expenses" by LBP 25.6 billion (+8.39%) After accounting for the non-controlling interest (mainly the net profit from controlled Mutual Funds), the Net Profit for the equity holders registered a remarkable increase by LBP 24.4 billon (+10.35%). 2018 2017 Notes 7,137,979,450 6,576,913,590 December 31st - LBP'000 Assets Cash and deposits at central banks Assets under leverage arrangement with the Central Bank of Lebanon Deposits with banks and financial institutions Financial assets at fair value through profit or loss EN 823,039 258 152,048,750 7 1,641.968,614 1,547,299,126 8 1,315,922,850 1,507,433,409 Loans to banks 255,316,224 292,410,807 Loans and advances to customers 8,555,503,383 8,445, 100,947 Loans and advances to related parties 125,277,446 128,160,657 Investment securities 7,677,716,311 8.172,896,908 Customers' liability under acceptances 399,604,145 357,494,071 Investment in an associate 23,009,057 41,535,338 Assets acquired in satisfaction of loans 24.566.718 22,742,704 Property and equipment 280,703,585 Goodwill 295.172,636 38,466,704 1 88,564,254 Other assets 93,462,327 73,049.675 Total Assets 28,457,005,123 27,686,353,821