You are asked to compare the trends in performance for Better Bank in Butterswood, Colorado with the performance ratios

Answers: 12/31/2017 12/31/2016

BK BK

IR% 4.16 3.66

IE% 1.16 1.00

NIM 3.00 2.66

NIE% 1.35 1.06

NIR% 0.35 0.36

Burden% 1.00 0.70

PLL% 0.50 0.00

OROA 1.50 1.96

Equity to

Assets % 10.00 9.97

a. Explain why the OROA changed for the bank (BK) in 2017 using

OROA = NIM Burden% - PLL%

b. Calculate the AU and NPM each year for the bank.

c. Calculate the Banks EM and its OROE each year.

d. Analyze why the OROE changed based on a Dupont Analysis of the trends in NPM, AU, and EM.