Why should banks be concerned about their level of profitability? What factors influence the stock price of a bank? What is return on equity capital and what aspect of performance is it supposed to measure? What is the return on assets and why is it important? Why do managers of banks often pay close attention to the net interest margin and noninterest margin? To the earnings spread? What are the principal components of ROE and what does each of these components measure?

QUESTION 3 Wardro Why should banks be concemed about their level of profitability? What factors influence the stock price of a bank? What is retum on equity capital and what aspect of performance is it supposed to measure? What is the return on assets and why is it important? Why do managers of banks often pay close attention to the net interest margin and noninterest margin? To the earnings spread? What are the principal components of ROE and what does each of these components measure? For the toolbar, press ALT F10 (PC) or ALT FN F10 (Mac). TT T Arial 3 (12