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Based on the following information about Banks A and B, compute for each the return on assets (ROA), return on equity (ROE), and leverage ratio.
Based on the following information about Banks A and B, compute for each the return on assets (ROA), return on equity (ROE), and leverage ratio. a. Bank A has net profit after taxes of $2 million and the following balance sheet: Reserves Loans Securities Assets Reserves Loans Bank Balance Sheet (in millions) Assets $5 $65 $50 Instructions: Enter your responses rounded to two decimal places. The return on assets (ROA) for Bank A: The return on equity (ROE) for Bank A: The leverage ratio for Bank A: Securities Liabilities and Capital $90 $15 $15 Deposits Borrowings Bank Capital b. Bank B has net profit after taxes of $1.5 million and the following balance sheet: $10 $55 $30 Bank Balance Sheet (in millions) percent percent Deposits Borrowings Bank Capital Instructions: Enter your responses rounded to two decimal places. The return on assets (ROA) for Bank B: The return on equity (ROE) for Bank B: The leverage ratio for Bank B: Liabilities and Capital $65 $15 $15 percent percent
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