Balance Sheet	2018	2019		2020
Cash	300	350		350
Marketable securities	500	400		600
Equipment and buildings	600	550		500
Net Loan	1200	1100		1150
Total Assets	2600	2400		2600
Deposit	1000	900		1000
Non-deposit	400	300		400
Equity	1200	1200		1200
Total Liabilities and equity	2600	2400		2600
Income Statement			2018		2019		2020
Interest revenue			600		500		450
Interest expense			200		150		150
Non interest revenue			100		150		150
Operating expense			50		55		60
Provision for loan loss			30		30		50
Pre tax net operating income			420		415		340
Securities gains/loss			30		40		40
Tax			80		70		80
Net Income			370		385		300

From above data, as an analyst of the company, calculate the ROE for all 3 years. Now break down the ROE in different components to understand the following factors.

1. Tax competence
2. How effectively company is using leverage
3. Asset and fund management

Now write a brief strategy on how the company can increase its ROE by 2% without the use of equity capital.