A-n-a-l-y-z-e- --t-h-e- -g-i-v-e-n- -d-a-t-a- -a-n-d- -a-n-s-w-e-r- -t-h-e- -q-u-e-s-t-i-o-n- , " - i-f- -t-h-e- -c-u-r-r--en-t- -t-r-e-n-d- -o-f- -m-e-t-r-o- -b-a-n-k- -c-o-n-t-i-n-u-o-s-,- -w-h-e-r-e- -d-o- -y-o-u- -s-e-e- -m-e-t-r-o- -b-a-n-k- -g-o-i-n-g- -i-n- -t-h-e- -n-e-x-t- - 3 - -y-e-a-r-s-?- -E-l-a-b-o-r-a-t-e- -y-o-u-r- -a-n-s-w-e-r- -b-y- -a-p-p-l-y-i-n-g- -m-a-n-a-g-e-m-e-n-t- -c-o-n-c-e-p-t-s - "
A-n-a-l-y-z-e- --t-h-e- -g-i-v-e-n- -d-a-t-a- -a-n-d- -a-n-s-w-e-r- -t-h-e- -q-u-e-s-t-i-o-n- , " - i-f- -t-h-e- -c-u-r-r--en-t- -t-r-e-n-d- -o-f- -m-e-t-r-o- -b-a-n-k- -c-o-n-t-i-n-u-o-s-,- -w-h-e-r-e- -d-o- -y-o-u- -s-e-e- -m-e-t-r-o- -b-a-n-k- -g-o-i-n-g- -i-n- -t-h-e- -n-e-x-t- - 3 - -y-e-a-r-s-?- -E-l-a-b-o-r-a-t-e- -y-o-u-r- -a-n-s-w-e-r- -b-y- -a-p-p-l-y-i-n-g- -m-a-n-a-g-e-m-e-n-t- -c-o-n-c-e-p-t-s - "
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
Related questions
Question
A-n-a-l-y-z-e- --t-h-e- -g-i-v-e-n- -d-a-t-a- -a-n-d- -a-n-s-w-e-r- -t-h-e- -q-u-e-s-t-i-o-n- , " - i-f- -t-h-e- -c-u-r-r--en-t- -t-r-e-n-d- -o-f- -m-e-t-r-o- -b-a-n-k- -c-o-n-t-i-n-u-o-s-,- -w-h-e-r-e- -d-o- -y-o-u- -s-e-e- -m-e-t-r-o- -b-a-n-k- -g-o-i-n-g- -i-n- -t-h-e- -n-e-x-t- - 3 - -y-e-a-r-s-?- -E-l-a-b-o-r-a-t-e- -y-o-u-r- -a-n-s-w-e-r- -b-y- -a-p-p-l-y-i-n-g- -m-a-n-a-g-e-m-e-n-t- -c-o-n-c-e-p-t-s - "
Transcribed Image Text:S-T-A-T-E-M-E-N-T--O-F- -F-I-N-A-N-C-I-A-L- -P-O-S-I-T-I-O-N
H-O-R-I-Z-O-N-T-A-L--A-N-A-L-Y-S-I-S
ASSETS
Cash and Other Cash Items
Due from Bangko Sentral ng Pilipinas
Due from Other Banks
Interbank Loans Receivable and Securities Purchased
Under Resale Agreements with the Bangko Sentral ng
Pilipinas
Financial Assets at Fair Value through Profit or Loss
Financial Assets at Fair Value through Other
Comprehensive Income
Investment Securities at Amortized Cost
Loans and Receivables
Investments in Subsidiaries and a Joint Venture
Property, Equipment, and Right-of-use Assets
Investment Properties
Deferred Tax Assets
Goodwill
Intangible Assets
Other Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
LIABILITIES
Deposit Liabilities
Demand
Savings
Time
Long-term Negotiable Certificates of Deposit
Financial Liabilities at Fair Value through Profit or Loss
Bills Payable and Securities Sold Under Repurchase
Agreements
Acceptances Payable
Margin Deposits and Cash Letters of Credit
Manager's and Certified Checks Outstanding
Income Tax Payable
Notes and Bonds Payable
Accrued Interest, Taxes and Other Expenses
Other Liabilities
TOTAL LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
Capital stock
Additional paid-in capital
Surplus
Net unrealized gain on financial assets at fair value through
other comprehensive income
Net unrealized gain (loss) on subsidiaries' financial assets
at fair value through other comprehensive income
Cumulative foreign currency translation
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
As Percentage of the Base
2021
2022
99.01%
132.96%
200%
147.61%
70.40%
164.15%
295.95%
114.53%
344.27%
95.67%
293.30%
66.80%
100%
137.24%
163.50%
129.01%
131.13%
119.05%
165.38%
100%
137.56%
159.58%
194.08%
247.81%
103.52%
106.23%
322.53%
103.06%
110.88%
85.82%
135.29%
100%
100%
117.44%
(456.79%)
173.61%
85.96%
102.06%
129.01%
83.27%
142.20%
130.82%
157.85%
64.41%
117.30%
93.35%
102.22%
217.27%
93.97%
108.26%
72.24%
100%
118.35%
94.30%
107.16%
122.07%
112.02%
123%
100%
118.89%
117.03%
16.43%
228.68%
65.05%
109.28%
139.52%
62.83%
77.33%
70.71%
108.50%
100%
100%
106.68%
(101%)
134.23%
113.80%
101.43%
107.16%
2020
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Transcribed Image Text:S-T-A-T-E-M-E-N-T--O-F- -F-I-N-A-N-C-I-A-L- -P-O-S-I-T-I-O-N
C-o-n-s-o-l-i-d-a-t-e-d
V-E-R-T-I-C-A-L--A-N-A-L-Y-S-I-S
ASSETS
Cash and Other Cash Items
Due from Bangko Sentral ng Pilipinas
Due from Other Banks
Interbank Loans Receivable and Securities Purchased
Under Resale Agreements with the Bangko Sentral ng
Pilipinas
Financial Assets at Fair Value through Profit or Loss
Financial Assets at Fair Value through Other
Comprehensive Income
Investment Securities at Amortized Cost
Loans and Receivables
Investments in Subsidiaries and a Joint Venture
Property, Equipment, and Right-of-use Assets
Investment Properties
Deferred Tax Assets
Goodwill
Intangible Assets
Other Assets
TOTAL ASSETS
LIABILITIES AND EQUITY
LIABILITIES
Deposit Liabilities
Demand
Savings
Time
Long-term Negotiable Certificates of Deposit
Financial Liabilities at Fair Value through
Profit or Loss
Bills Payable and Securities Sold Under
Repurchase Agreements
Acceptances Payable
Margin Deposits and Cash Letters of Credit
Manager's and Certified Checks Outstanding
Income Tax Payable
Notes and Bonds Payable
Accrued Interest, Taxes and Other Expenses
Other Liabilities
TOTAL LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE
PARENT COMPANY
Capital stock
Additional paid-in capital
Surplus
Net unrealized gain on financial assets at fair value through
other comprehensive income
Net unrealized gain (loss) on subsidiaries' financial assets at
fair value through other comprehensive income
Cumulative foreign currency translation
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
3 Year Average
P 12,524,769.67
59,264,765.33
14,419,183.00
25,193,535.67
8,412,405.33
87,444,107.00
38,152,941.33
463,350,979.33
1,563,230.67
5,327,284.00
1,826,697.00
5,786,410.00
841,602.00
3,226,017.33
4,252,330.67
P731,586,258.33
P208,777,970
108,928,697
180,843,638
24,728,508
523,278,813
1,378,862
21,823,063
841,572
55,299
4,062,449
115,211
40,514,561
3,598,621
11,176,596
606,845,047
7,635,389
38,524,323
81,881,406
(3,086,506)
10,282
(223,682)
124,741,212
P731,586,258
Percentage
1.71%
8.10%
1.97%
3.44%
1.15%
11.95%
5.33%
63.34%
0.21%
0.73%
0.25%
0.79%
0.12%
0.44%
0.58%
100.00%
28.54%
14.89%
24.72%
3.38%
71.53%
0.19%
2.98%
0.12%
0.01%
0.56%
0.02%
5.54%
0.49%
1.53%
82.95%
1.04%
5.27%
11.19%
(0.42%)
0.00%
(0.03%)
17.05%
100.00%
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A-n-a-l-y-z-e- --t-h-e- -g-i-v-e-n- -d-a-t-a- -a-n-d- -a-n-s-w-e-r- -t-h-e- -q-u-e-s-t-i-o-n- , " - i-f- -t-h-e- -c-u-r-r--en-t- -t-r-e-n-d- -o-f- -m-e-t-r-o- -b-a-n-k- -c-o-n-t-i-n-u-o-s-,- -w-h-e-r-e- -d-o- -y-o-u- -s-e-e- -m-e-t-r-o- -b-a-n-k- -g-o-i-n-g- -i-n- -t-h-e- -n-e-x-t- - 3 - -y-e-a-r-s-?- -E-l-a-b-o-r-a-t-e- -y-o-u-r- -a-n-s-w-e-r- -b-y- -a-p-p-l-y-i-n-g- -m-a-n-a-g-e-m-e-n-t- -c-o-n-c-e-p-t-s - "
Transcribed Image Text:LIQUIDITY RATIO
FINANCIAL RATIOS
Current Ratio
1.18
This value indicates that for every one-peso current liability of the metro bank it has 1.18_worth of current
assets, and it has capable of paying its short-term liabilities.
SOLVENCY AND CAPITAL STRUCTURE
Debt Ratio
82.95%
This value indicates that 82.95% of its total assets is financed by creditors. The higher this ratio, the greater the
amount of other people's money being used to generate profits.
Times Interest Earned Ratio
5.60
The value indicates that the Metro Bank have the ability to pay its interest expenses 5.60 times using its
operating income.
ASSET UTILIZATION AND EFFICIENCY RATIOS
Total Asset Turnover
0.06
This value indicate that the Metro Bank turn over its assets 0.06 times to generate profits.
PROFITABILITY RATIOS
Operating Profit Margin
25.82%
The value indicates that Metro Bank operating profit is 25.82% of its interest income. For every one peso of
interest income, the Metro Bank earned operating profit of 0.2582
Net profit Margin
14.00%
The value indicates that Metro Bank Net Profit Margin is 14%,
Earnings Per Share
P11.02
The value indicates that every share of stock that a creditor own in Metro Bank have earned 11.02.
Return on Total Assets (ROA)
1.29%
This value indicates that Metro Bank's profit before interest expense and income tax is 1.29% of it's average
total assets. For every peso worth of assets, the Metro Bank earned a return of P0.01293999382
Return on Common Equity (ROE)
This value indicates that the Metro Bank earned cents on each dollar of common stock equity.
MEASURES OF RETURN
Price/Earnings (P/E) Ratio
10.28
The value indicates that the investors of the Metro bank were paying 10.28 peso for each 1-peso earnings.
Market/Book (M/B) Ratio
14.89
The value indicates that the investors are currently paying P14.89 for each P1.00 of book value of the Metro
Bank.
Transcribed Image Text:INTEREST INCOME ON
Loans and receivables
Financial assets at fair value through other comprehensive
income and investment securities at amortized cost
Financial assets at fair value through profit or loss
Interbank loans receivable and securities purchased under
resale agreements with the Bangko Sentral ng Pilipinas
Deposits with banks and others
INTEREST EXPENSE ON
Deposit liabilities
S-T-A-T-E-M-E-N-T--O-F--I-N-C-O-M-E
Subordinated note, bills payable, securities sold under
repurchase agreements, notes payable, and other
borrowings
Derivative instruments
Lease liabilities
Derivatives designated as hedges
NET INTEREST INCOME
Service charges, fees and commissions
Profit from assets sold/exchanged
Foreign exchange gain - net
Rent
Share in net income (loss) of subsidiaries and joint ventures
Gain on disposal/redemption of investment securities at
amortized cost
Trading and securities gain (loss) – net
Miscellaneous
TOTAL OPERATING INCOME
OPERATING EXPENSES
Compensation and fringe benefits
Taxes and licenses
Provision for credit losses
Depreciation and amortization
Amortization of software costs
Occupancy costs
Provision for (recovery of) impairment losses
Miscellaneous
TOTAL OPERATING EXPENSES
INCOME BEFORE INCOME TAX
PROVISION FOR (BENEFIT FROM)
INCOME TAX
NET INCOME
3 Year Average
P30,592,821
4,217,870
1,241,915
366,758
251,102
36,670,467
4,389,809
2,474,059
407,317
98,420
183,425
7,553,030
29,117,438
4,482,694
1,056,482
524,719
572,459
524,719
774,231
4,056,812
1,676,713
42,272,791
6,955,215
3,234,313
11,432,634
2,099,190
407,644
366,132
75,686
8,235,296
32,806,109
9,466,681
1,165,073
8,301,608
Percentage
83.43%
11.50%
3.39%
1.00%
0.69%
100%
11.97%
6.75%
1.11%
0.27%
0.50%
20.60%
79.40%
12 .22 %
2.88%
1.43%
1.56%
0.03%
2.11%
11.06%
4.57%
115.28%
18.97%
8.82%
31.18%
5.72%
1.11%
1.00%
0.21%
22.46%
89.46%
25.82%
3.18%
22.64
Solution
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