Show the source of each number you use.

Earnings and Profitability for HSBC Bank:

1.Discuss the growth in net income of the total banking sector for the period 2015- 2019. Present it with a figure where you put years on x-axis and net income of the total banking sector on y-axis. Comment.

2. Discuss the growth in net income of the bank for the period 2015-2019. Present it with a figure where you put years on x-axis and net income of the bank on y-axis. Comment.

3. Compute the ratio of Interest Income to total assets, Interest Expense to total assets and Net interest income total assets (in percentage) for the recent two years (2018- 2019). Compare.

4. Find the ratio of Interest Income to total assets, Interest Expense to total assets and Net interest income total assets (in percentage) for 2019 for the banking sector. Compare the ratios of your bank with the industry.

5. Find Non-interest income and non-interest expense divided by total assets (in percentage) for the recent two years (2018-2019). Compare.

6. Find Non-interest income and non-interest expense divided by total assets (in percentage) in 2019 for the banking sector. Compare the ratios of your bank with the sector in 2019.

7. Choose one non-interest income item (f.e. total fee income) and choose one non- interest expense (f.e. compensation) and compute their percentages in non-interest income and non-interest expense respectively for the recent two years (2018-2019). Compare and discuss.

8. Find loan-loss provision for the recent two years (2018-2019) and discuss.

9. Compute Return-on-Equity for the recent two years (2018-2019) and compare it with

   ROE of the total banking sector.

10. Comment on the source of change in ROE considering your previous findings. What

    drives the increase or decrease you observe in ROE in the most recent year? Is it driven by interest income, non-interest income or sth else? Discuss.