Accounting

ASSIGNMENT

BANK MANAGEMENT
FIN 32043

LECTURE INCHARGE: MR AM SHEHAM

APS DILRUKSHI SEU/IS/08/MG/019 3rd YEAR-2nd SEMESTER FACULTY OF MGT & COM.

SOUTH EASTERN UNIVERSITY OF SRILANKA

ANALYSIS OF FINANCIAL STATEMENTS OF COMMERCIAL BANK

INTRODUCTION
In this report I have mentioned the ratio analysis of the financial statement’s data (income statement and balance sheet) of the commercial bank by comparing five year information given by that statements. It includes 2007, 2008, 2009, 2010 and 2011 years.
I have used following ratios. * Return on equity (ROE) * Return on assets (ROA) * Net interest margin (NIM) * Net interest margin after provision for loan losses (NIMPLL) * Efficiency ratio * Fee income ratio * Earnings per share * Tax management efficiency * Net profit margin (NPM) * Asset utilization (AU) * Equity multiplier (EM)

* Return on equity = Net income / Average common equity
Return on equity = NPM*AU*EM

Year | 2007 | 2008 | 2009 | 2010 | 2011 | ROE | 0.171 | 0.165 | 0.151 | 0.166 | 0.182 |

* Return on assets = Net income / Average total assets

Year | 2007 | 2008 | 2009 | 2010 | 2011 | ROA | 0.015 | 0.015 | 0.013 | 0.015 | 0.018 |

* Net interest margin = Net interest income / Average(total)assets

Year | 2007 | 2008 | 2009 | 2010 | 2011 | NIM | 0.043 | 0.046 | 0.039 | 0.044 | 0.041 |

* NIMPLL