Question
To measure a bank performance there are several specific ratios and their formulas are explained below, read those formulas and you can search them in
To measure a bank performance there are several specific ratios and their formulas are explained below, read those formulas and you can search them in the internet to understand them clearly, then complete the requirements explained in this paper.
Profitability Performance
- Net Interest Margin = Net Interest Income / Total Assets
- Return On Assets (ROA) = Net Income/Total Assets
- Return On Equity (ROE) = Net Income/ Total Equity
Liquidity Performance
- Cash & Money Market Investment to Deposit Ratio (CPIDR) = Cash & Money Market Investment / Deposits
- Net Loans to total asset ratio (NLTA) = Net Loans/Total Assets
- Loans to deposit Ratio (LDR) = Gross Loans/Total Deposits
Requirement:
you are requested to use yahoo finance website, and there search for the assigned bank you have according to the following table.
Under finance you will find the section financial, where you will see the income statement and the balance sheet as I have explained in the class; then you are required to calculate the above ratios for 4 years 2017,2018,2019,and 2020 followed by an excel chart to explain what is happening for each ratio (an example of the graph is below the table)
NOTE: name of bank is ( Lloyds Banking Group plc)
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