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

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