QUESTION 4

STATEMENT OF FINANCIAL POSITION OF KOYJOY BANK LTD. AS AT 31ST DECEMBER, 2018

2018 BANK

(000) 511,313 1,804,595 2,267,925 2,038

-

17,706 17,033 77,541 312,088 5,010,239

65,740 2,731,193

1,339,108 7,163

-

127,788

4,270,992

350,000 124,962 63,526 177,109

GROUP (000) 51,320 1,809,867 2,267,925 -

649 17,706 17,033 81,214 312,708 5,018,422

65,740 2,707,898

1,339,108 7,823

2 129,666

4,250,237

350,000 154,410 63,526

177,109

2017

(000) 653,333 981,036 1,847,091 2,038 14,675 6,007 17,345 78,649 267,290 3,867,464

126,606 2,257,930 669,209

-

-

201,642

3,255,387

100,000 222,153 63,413

158,813

BANK

GROUP

(000) 668,855 986,128 1,847,091

-

15,211 6,019 17,345 81,773 267,380 3,289,802

126,606 2,257,010 669,209 293

2

202,894 3,256,014

100,000 244,373 62,903 158,813

Assets

Cash & cash equivalents Investment securities Loans & Advances Investments in subsidiaries Current Tax Assets Deferred Tax

Intangible Assets

Other Assets

Property, Plant & Equipments Total Assets

Liabilities

Deposits from Banks & other Financial Inst. Deposits from Customers

Borrowings

Current Tax Liabilities

Deferred Tax

Other Liabilities

Total Liabilities Shareholders Equity Stated Capital

Income Surplus Revaluation Reserve Statutory Reserve

6

Credit Risk Reserve

Other Reserves

Total Shareholders Equity

Total Liabilities/ Shareholders Equity

Required:

32,283

(8,633) 739,247 5,010,239

32,283 74,103

(9,143) (6,405) 768,185 612,077 5,018,422 3,867,464

74,103 (6,404) 633,788

3,889,802

(a) Using the Memo format write a report to management on Net Interest Margin, Return on (ROA), Return on Equity (ROE) and advise management on the way forward.

(6 marks) (b) Discuss Assets and Liabilities Management in the context of Ghana. (10 marks)

(c) Differentiate between Credit risk and Operational risk, as risks factors faced by Commercial banks. (2marks)

(d) Outline four (4) ways by which credit risk could be managed in Ghana

(2 marks)

[Total: 20 marks]