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	$10	Deposits	$55
Loans	$45	Borrowing	$10
Securities	$35	Bank Capital	$25

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: _______