Balance Sheet 2016 2017 2019 Cash 150 140 165 Marketable securities 500 450 500 Equipment and buildings 600 600 600 Net Loan 1200 1300 1250 Total Assets 2450 2490 2515 Deposit 1000 900 1000 Non-deposit 300 200 300 Equity 1150 1390 1215 Total Liabilities and equity 2450 2490 2515 Income Statement 2016 2017 2019 Interest revenue 500 450 500 Interest expense 100 150 150 Non interest revenue 100 150 150 Operating expense 50 50 60 Provision for loan loss 30 30 30 Pre tax net operating income 420 370 410 Securities gains/loss 30 40 40 Tax 80 70 80 Net Income 370 340 370 From the above data, as an analyst of the bank, calculate the ROE for all 3 years. Now break down the ROE in different components to understand the following factors. I. Tax efficiency II. Control of expenses III. Asset and fund management Now write a brief report of competitive analysis on above factors and what can be done in coming years to improve them