Reference no: EM132724039

BAAC3102 Banking and Insurance Accounting - University of Technology and applied sciences Business Studies

Assignment- Analysis of Financial Statements for Banks

I. Introduction

- Brief discussion about the of the Bank, history, profile, and short background
- Mention any of the Business Goals or Objectives, or Mission , or Vision
- Description of Product or Service they are providing to customers

II. Financial Statement / reports of the Selected Banks from
2016- 2017, 2017-18, 2018-19

III. Findings: Analysis and Interpretation
1. Based on financial reports prepare ratio analysis and interpret the result of the Following ratios:
A. Profitability Performance:
(i) Interest Income on Loans = Interest Income on loans/Gross Loans (how profitable are gross loans).
(ii) Return On Asset (ROA) = Net Income (Loss)/Total Assets (how profitable are total assets)
(iii) Return On Equity (ROE) = Net Income (Loss)/Equity (how profitable is equity)
B. Liquidity Ratios:
(iv) Net loans to Total Assets Ratio = Net Loans/Total Assets
(v) Net loans to deposit- borrowing ratio= Net loans/ Total deposit and short-term borrowings
C. Solvency Ratio :
(vi) Debt to Equity ratio = Total Debt/Total Equity
(vii) Financial leverage = Total debt/ Total assets.

2. Interpret the result and discuss your assessment on the company performance.

IV. Conclusion:

Based on your findings on ratio analysis and interpretation, what conclusion can you make?

V. Recommendations:
What recommendations can you give to the bank with regards to your findings?

Attachment:- Analysis of Financial Statements for Banks.rar