Bank A and Bank B have the same net income, equity multiplier (EM) and profit margin (PM). However, Bank A has a higher ROA than Bank B.

Which of the following statements is most correct?

Bank A has higher leverage than Bank B

Both banks have the same asset utilisation and ROE

Bank A has lower financial risk than Bank B

Both banks have the same asset utilisation, but Bank A has a lower ROE than Bank B.

Bank A has higher asset utilisation (AU) and return on equity (ROE) than Bank B.