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:

Bank Balance Sheet
(in millions)
Assets		Liabilities and Capital
Reserves	$5	Deposits	$90
Loans	$70	Borrowings	$15
Securities	$45	Bank Capital	$15

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 $1.5 million and the following balance sheet:

Bank Balance Sheet
(in millions)
Assets		Liabilities and Capital
Reserves	$10	Deposits	$70
Loans	$55	Borrowings	$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: