Billsam Consult, a management and finance consultancy firm, has employed you as a fresh graduate to join their financial analyst team. The firm has provided you with data of three performing local banks in Ghana for review analysis to be published in their annual journal titled, Banking in Ghana. (See page for the data) 

Required:

a) Using ratios, analyze the profitability and the solvency of the three-local banks from 2015 to 2017.

b) Based on the analysis in (a), discuss three causes of a declining Return on Equity (ROE).

c) Explain two determents of bank performance.

d) Explain the term 'Capital Adequacy Ratio' and how it is computed.

Table One net interest income Total operating income Net non- interest income total operating expense net income before tax income tax net income after tax cash and cash equivalent loans total assets total equity total debt total deposits FINANCIAL STATEMENT ANALYSIS OF BANKS IN GHANA FOR 2015-2017 THE AMOUNTS ARE RECORDED IN THOUSANDS OF GHANA CEDIS GCB ADB CAL 2015 2016 244,735 2017 590,270 2015 2016 -100,197 731,436 884,488 894,400 180,574 193,314 309,611 242,911 248,377 345,237 867,285 1,062,692 1,113,153 273,081 278,457 388,415 357,446 446,309 135,849 178,204 218,753 92,507 425,570 756,876 83,933 2017 406,904 -70,026 97,293 262,828 279,939 309,742 352,738 2015 47,339 20,829 2016 26,510 145,504 109,069 345,361 350,276 308,894 446,782 105,541 147,775 96,179 -105,714 21,222 35,688 299,007 212,715 -78,975 160,042 145,166 544,683 1,179,975 1,022,684 483,967 610,563 951,675 258,014 428,756 512,376 1,492,623 1,412,977 2,099,330 1,088,071 1,005,302 1,139,356 1,806,115 1,966,394 1,853,674 4,641,166 6,049,604 9,558,151 2,134,147 3,035,493 3,545,143 3,351,039 3,599,355 4,212,638 816,617 1,015,113 1,113,150 332,893 454,778 479,013 505,863 502,768 647,427 3,824,549 5,034,491 8,445,001 1,801,254 2,580,715 3,066,130 2,845,176 3,096,587 3,565,211 3,368,406 4,276,775 6,956,190 1,513,509 2,147,450 2,541,010 1,544,523 2,312,391 2,428,201 213,197 12,085 42,495 4,882 2017 7,203 101,072 237,972 208,337 63,171