The balance sheets and income statements for the three banks$$X$,$ Y$,$ and Z$$are shown in Tables $1$ and $2.$ These banks all entered the banking industry during the previous ten years and have similar business models.

Table $1$: Balance Sheets as at $31$ December $2023$

All balance sheet figures are stated as averages

Bank X Bank Y Bank Z

K$\text{'}000$ K$\text{'}000$ K$\text{'}000$

Assets

Notes and Coins $172\mathrm{.}0062\mathrm{.}00394\mathrm{.}00$

Balances with Bak of Zambia $543\mathrm{.}00198\mathrm{.}00399\mathrm{.}00$

Balanaces with other financial institutions $594\mathrm{.}00935\mathrm{.}001,228\mathrm{.}00$

Investments on Government securities $1,918\mathrm{.}001,099\mathrm{.}001,103\mathrm{.}00$

Loans and Advances $2,116\mathrm{.}00882\mathrm{.}002,193\mathrm{.}00$

Other assets $457\mathrm{.}00324\mathrm{.}001,583\mathrm{.}00$

Total Assets $5,800\mathrm{.}003,500\mathrm{.}006,900\mathrm{.}00$

Liabilities and Equity

Deposites $4,427\mathrm{.}002,023\mathrm{.}004,401\mathrm{.}00$

Balances due to other financial institutions $0\mathrm{.}00204\mathrm{.}001,226\mathrm{.}00$

All other liabilities $407\mathrm{.}00613\mathrm{.}00544\mathrm{.}00$

Shareholder's equity $965\mathrm{.}00660\mathrm{.}00728\mathrm{.}00$

Toatl Liabilities and Equity $5,800\mathrm{.}003,500\mathrm{.}006,900\mathrm{.}00$

Table $2$: Income Statements for the year ended $31$ December $2023$

Bank X Bank Y Bank Z

K$\text{'}000$ K$\text{'}000$ K$\text{'}000$

Interest income $850\mathrm{.}00332\mathrm{.}00704\mathrm{.}00$

interest expense $301\mathrm{.}00114\mathrm{.}00333\mathrm{.}00$

Net interest income $548\mathrm{.}00217\mathrm{.}00371\mathrm{.}00$

Non$-$interest income $136\mathrm{.}00108\mathrm{.}00307\mathrm{.}00$

Net operating income $685\mathrm{.}00326\mathrm{.}00679\mathrm{.}00$

Provision for loan losses $16\mathrm{.}007\mathrm{.}0025\mathrm{.}00$

Non$-$interest expenses $371\mathrm{.}00168\mathrm{.}00599\mathrm{.}00$

Total $387\mathrm{.}00175\mathrm{.}00624\mathrm{.}00$

Profit before tax $298\mathrm{.}00150\mathrm{.}0055\mathrm{.}00$

Tax $106\mathrm{.}0058\mathrm{.}0015\mathrm{.}00$

Profit after tax $192\mathrm{.}0092\mathrm{.}0040\mathrm{.}00$

REQUIRED:

A$.$ Calculate the appropriate financial performance ratios for each of the three banks using the decomposition analysis of return on assets $($ROA$)$ and return on equity $($ROE$).[15$ marks$]$

B$.$ Which of these three banks performed the best, and what factors were the primary ones? $[5$ marks$]$