CEO Assignment #1
Bank Analysis - Decomposition of ROE
FIN 420 – Bank Management
Utilizing data contained within the Uniform Bank Performance Report (UBPR) of a local
bank, decompose the company’s 12/31/11 financial performance as well as
information for its peer group. Analyze the results.
Bank of Holland
Grand River Bank
Part #1 – Obtaining Information
• Obtain bank financial information from UBPR • Complete decomp Excel worksheet
• Compare bank financial information to peer group • Calculate ROA, ROE, and several bank ratios based on data
Part #2 – Analyzing Information
• What were the three largest differences between your Bank and its peer group in the core ROE decomposition analysis? • How did the drivers (#1-3) help to understand the ROE decomposition? • Are there any drivers that could provide a better understanding of the Bank’s performance? • What was the largest surprise about your Bank in relation to its performance and comparison to peer group? • Identify three strategic initiatives that the Bank CEO could implement to improve performance? Identify the benefits of such initiatives but also the related costs to implement these initiatives.
https://cdr.ffiec.gov/public/ManageFacsimiles.aspx 1) Select “Uniform Bank Performance Report” under the “Report” drop down menu 2) Type the name of the bank you select under “Institution Name”
1) ROE Decomposition Excel Worksheet
2) Memo to the CEO of the Bank you analyzed addressing the questions contained in
part #2 above. Memo is to be no longer than two pages (0.75 inch margins, font 11,
New Roman). All charts/tables should be included in...
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