Solve if and only if you can do all the parts correctly. Especially I need the calculation based questions correctly and descriptive with only some brief answer.

a) Compare the sources of funding (funding structure) of the two banks

b) Compare the uses of funds of the two banks

c) For both the banks calculate Capital Ratio, ROA, Net Interest Margin, ROE, and Equity Multiplier

d) Analyze the ROE of each bank using DuPont System

e) Compare he net interest margin of both banks and explain this measure tells us about the performance of these two banks.

f) Using the ratio calculated, provide a brief overview of the performance of these two banks indicating which one has better overall performance.

g) Discuss how commercial banks can manage credit risk which arises from their investments?

BANKA BANKB 2019 4,908.20 4,137.61 0 3.97 2019 1,624.88 2,364.16 0 0 0 0 2.364.16 Balance Sheet 31 December 2019 (USD) Bank Year Cash And Due From Banks Total Investments Treasury Securities Trading Account Securities Securities Purch Under Resale Agree Other Securities Other Investments Loans - Net Loans - Total Reserves For Loan Losses Investment In Unconsolidated Subsidiaries Customer Liability On Acceptances Real Estate Assets Property. Plant & Equipment - Net other Assets Total Assets 0 4.111.02 22.63 29,339.40 30.084.00 21,642.07 21.878.07 236 744.6 0 0 201.44 2.464.75 408.57 0 897.45 850.88 40.553.05 940.89 644.51 29,882.69 Liabilities & Shareholders' Equity Total Deposits Demand Deposits Savings And Other Time Deposits Unspecified Deposits Total Debt ST Debt And Current Portion of LT Debt 30,684.83 16,356.26 14,328.57 16,953.02 6,743.56 9.790,40 0 419.06 1,078.68 7.180.23 1,056.14 2,046.37 Lone Term Debt 22.54 5.133.86 22.54 5.133.86 96.05 80.11 0 0 Long Term Debt Provision For Risks And Charges Deferred Income Other Liabilities Total Liabilities Total equity Total Liabilities & Shareholders' Equity 964.93 25,178.29 976.05 32,835.61 7,717 40,553.05 4,704 29,882.69 Income Statement for period ending 31/12/2019 Bank BANKB Year 2019 BANKA 2019 3,307.67 2.279.87 811.88 811.88 700.21 0 175.01 Total Interest Income Interest & Fees on Loans Interest income on Bank Deposits Interest on Government Securities Other Interest or Dividend Income Interest Expense - Total Interest Expense on Bank Deposits interest Expense on Fed Funds Interest Expense on oth Borrowed Funds 0 0 152.59 258.75 285.99 173.86 0 0 0 34.92 117.36 49.97 168.63 3,048.93 525.89 Interest Expense on Debt Net Interest Income Non-Interest Income Foreign Exchange income Gain(Loss) on Sale of Securities-Pretax 890.31 314.87 94.89 26.39 -6.8 110.23 Trusts & Fiduciary Income/Comm & Fees 682.25 155.61 119.96 22.64 1,478.51 458.13 315.89 614.65 94.63 0 Other Operating Income Non Interest Expense Staff Costs Equipment Expense Depreciation & Depletion Other Operating Expense Operating Provisions Provision For Loan Losses Operating Income 121.3 33.13 647.93 109.11 0 0 350 1.055.41 1,405.32 32.63 You have the following relations: Net interest income = Total interest income - Total interest expenses Net Non-interest income = Total non-interest income - Total non-interest expenses Net income = Net interest Income + Net Non-interest income - Provision for loan losses ROE = ROA X Equity multiplier (or Financial Leverage) ROA = Net Income / Total Assets ROE - Net Income / Total Equity NIM = Net interest Income / Total Assets Capital Ratio - Total Equity / Total Assets Equity Multiplier (or Financial Leverage) = Total Assets / Total Equity BANKA BANKB 2019 4,908.20 4,137.61 0 3.97 2019 1,624.88 2,364.16 0 0 0 0 2.364.16 Balance Sheet 31 December 2019 (USD) Bank Year Cash And Due From Banks Total Investments Treasury Securities Trading Account Securities Securities Purch Under Resale Agree Other Securities Other Investments Loans - Net Loans - Total Reserves For Loan Losses Investment In Unconsolidated Subsidiaries Customer Liability On Acceptances Real Estate Assets Property. Plant & Equipment - Net other Assets Total Assets 0 4.111.02 22.63 29,339.40 30.084.00 21,642.07 21.878.07 236 744.6 0 0 201.44 2.464.75 408.57 0 897.45 850.88 40.553.05 940.89 644.51 29,882.69 Liabilities & Shareholders' Equity Total Deposits Demand Deposits Savings And Other Time Deposits Unspecified Deposits Total Debt ST Debt And Current Portion of LT Debt 30,684.83 16,356.26 14,328.57 16,953.02 6,743.56 9.790,40 0 419.06 1,078.68 7.180.23 1,056.14 2,046.37 Lone Term Debt 22.54 5.133.86 22.54 5.133.86 96.05 80.11 0 0 Long Term Debt Provision For Risks And Charges Deferred Income Other Liabilities Total Liabilities Total equity Total Liabilities & Shareholders' Equity 964.93 25,178.29 976.05 32,835.61 7,717 40,553.05 4,704 29,882.69 Income Statement for period ending 31/12/2019 Bank BANKB Year 2019 BANKA 2019 3,307.67 2.279.87 811.88 811.88 700.21 0 175.01 Total Interest Income Interest & Fees on Loans Interest income on Bank Deposits Interest on Government Securities Other Interest or Dividend Income Interest Expense - Total Interest Expense on Bank Deposits interest Expense on Fed Funds Interest Expense on oth Borrowed Funds 0 0 152.59 258.75 285.99 173.86 0 0 0 34.92 117.36 49.97 168.63 3,048.93 525.89 Interest Expense on Debt Net Interest Income Non-Interest Income Foreign Exchange income Gain(Loss) on Sale of Securities-Pretax 890.31 314.87 94.89 26.39 -6.8 110.23 Trusts & Fiduciary Income/Comm & Fees 682.25 155.61 119.96 22.64 1,478.51 458.13 315.89 614.65 94.63 0 Other Operating Income Non Interest Expense Staff Costs Equipment Expense Depreciation & Depletion Other Operating Expense Operating Provisions Provision For Loan Losses Operating Income 121.3 33.13 647.93 109.11 0 0 350 1.055.41 1,405.32 32.63 You have the following relations: Net interest income = Total interest income - Total interest expenses Net Non-interest income = Total non-interest income - Total non-interest expenses Net income = Net interest Income + Net Non-interest income - Provision for loan losses ROE = ROA X Equity multiplier (or Financial Leverage) ROA = Net Income / Total Assets ROE - Net Income / Total Equity NIM = Net interest Income / Total Assets Capital Ratio - Total Equity / Total Assets Equity Multiplier (or Financial Leverage) = Total Assets / Total Equity