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 $1.8 million and the following balance sheet:

Bank Balance Sheet
(in millions)
Assets		Liabilities
Reserves	$5	Deposits	$100
Loans	$70	Borrowing	$10
Securities	$45	Bank Capital	$10

Instructions: Enter your responses rounded to two decimal places.

The return on assets (ROA) for Bank A:___ percent

The return on equity (ROE) for Bank A:___ percent

The leverage ratio for Bank A:

b. Bank B has net profit after taxes of $2 million and the following balance sheet:

Bank Balance Sheet
(in millions)
Assets		Liabilities
Reserves	$5	Deposits	$65
Loans	$55	Borrowing	$10
Securities	$30	Bank Capital	$15

Instructions: Enter your responses rounded to two decimal places.

The return on assets (ROA) for Bank B:___ percent

The return on equity (ROE) for Bank B: __ percent

The leverage ratio for Bank B: