$1)$ interpret the following ratios. $2)$identify the financial strength and weaknesses of bank A$,$ Bank B & Bank C basing on the analysedratios attached. $3)$ compare the performance of three banks and identify any trends or patterns observed over the three year period. $4)$ discuss the potential reasons behind observed trend in ratios for each bank. $5)$write up recommendation for bank A$,$ bank b and bank c no how to enhance their financial performance $,$ focusing on areas of improvement and stratergies to leverage their strengths. use the following information answers to interprent: a$)$ Current Ratio $=$ Total Current Assets $/$ Total Current Liabilities

Bank A:

Current Ratio:

$20$X$1$: $(600,000,000/900,000,000)=0\mathrm{.}67.$

$20$X$2$: $(620,000,000/950,000,000)=0\mathrm{.}65$

$20$X$3(650,000,000/1000,000,000)=0\mathrm{.}65$

Bank B:

Current Ratio:

$20$X$1$ :( $450,000,000/700,000,000)=0\mathrm{.}64$

$20$X$2$: $(460,000,000/720,000,000)=0\mathrm{.}63$

$20$X$3$: $(480,000,000/750,000,000)=0\mathrm{.}64$

Bank c

Current ratio

$20$X$1(800,000,000/1,100,000,000)=0\mathrm{.}73$

$20$X$2(820,000,000/1,150,000,000)=0\mathrm{.}71$

$20$X$3(840,000,000/1,200,000,000)=0\mathrm{.}70$

$3.$ Profitability Ratios:

a$.$ Return on Assets $($ROA$)$: ROA $=($Net Income $/$ Total Assets $)*100$

Bank A:

Return on assets $($ROA$)$:

$20$X$1$ :( $120,000,000/1,200,000,000)*100\%=10\%$

$20$X$2$ :( $130,000,000/1,350,000,000)*100=9\mathrm{.}63\%$

$20$X$3$ :( $140,000,000/1,500,000,000)*100=9\mathrm{.}33\%$

Bank B

Return on assets $($ROA$)$:

$20$X$1$ :( $80,000,000/800,000,000)*100\%=10\%$

$20$X$2$ :( $85,000,000/850,000,000)*100=10\%$

$20$X$3$ :( $90,000,000/900,000,000)*100=10\%$

Bank C

Return on assets $($ROA$)$:

$20$X$1$ :( $160,000,000/1,500,000,000)*100\%=10\mathrm{.}67\%$

$20$X$2$ :( $170,000,000/1,600,000,000)*100=10\mathrm{.}63\%$

$20$X$3$ :( $180,000,000/1,700,000,000*100=10\mathrm{.}59\%$

b$)$ Return on Equity $($ROE$)$: ROE $=($Net Income $/$ Total Equity$)*100$

Bank A

equity $-=$total asssets minus total depostit

$20$X$1$ :( $120,000,000/1,200,000,000-900,000,000)*100\%=40\%$

$20$X$2$ :( $130,000,000/1,350,000,000-950,000,000)*100=33\%$

$20$X$3$ :( $140,000,000/1,500,000,000-1000,000,000)*100=28\%$

Bank B

ROE$=$ Net Income$/$Total Equity$)*100$

$20$X$1$ :( $80,000,000/800,000,000-700,000,000)*100\%=80\%$

$20$X$2$ :( $85,000,000/850,000,000-720,000,000)*100=65\%$

$20$X$3$ :( $90,000,000/900,000,000-750,000,000)*100=60\%$

Bank C

ROE$=$ Net Income$/$Total Equity$)*100$

$20$X$1$ :( $160,000,000/1,500,000,000-1100,000,000)*100\%=40\%$

$20$X$2$ :( $170,000,000/1,600,000,000-1150,000,000)*100=38\%$

$20$X$3$ :( $180,000,000/1,700,000,000-1200,000,000)*100=36\%$

c$)$ Net interest Margin $($NIM$)=$ Net income$/$ Average earning assets$*100$

Bank A

$20$X$1$: $120,000,000/600,000,000*100=20\%$

$20$X$2$: $130,000,000/620,000,000*100=20\mathrm{.}97$

$20$X$3$: $140,000,000/650,000,000*100=21\mathrm{.}54$

Bank B

$20$X$1$: $80,000,000/450,000,000*100=17\mathrm{.}78\%$

$20$X$2$: $85,000,000/460,000,000*100=18\mathrm{.}49\%$

$20$X$3$: $90,000,000/480,000,000*100=18\mathrm{.}75\%$

Bank C

$20$X$1$: $160,000,000/800,000,000*100=20\%$

$20$X$2$: