Currency: PKR in Millions TOTAL LIABILITIES SHAREHOLDER EQUITY NET INCOME TOTAL ASSETS 23,028.00 BANK'S NAME 1 NBP 2,369,885.00 2,194,503.00 125,693.00 2 HBL 8,182.00 2,684,102.00 2,495,286.00 188,815.00 3 MCB 22,459.00 1,327,311.00 1,173,745.00 153,566.00 106,716.00 57,335.00 4 ABL 12,734.00 1,245,712.00 513,548.00 1,138,996.00 5 SCB 8,245.00 450,611.00 FABL 4,515.00 488,027.00 488,795.00 39,232.00 651,124.00 919,051.00 7 HMB 5,864.00 43,862.00 607,262.00 873,175.00 ВАН 8,650.00 45,875.00 Required: a) Calculate ROA, ROE, Total Assets to Shareholders Equity and Debt to Equity Ratios of all the Banks. b) Which Bank do you think has performed well and why? Explain in bullet-points. c) Which of the above Bank or Banks you think have a leveraged position? What possible risk

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
Q1:
Please review the grid given below showing key financials for CY2019 of eight listed full-service
commercial banks that are currently operating in Pakistan's financial landscape and answer the
questions given below:
Currency: PKR in Millions
SHAREHOLDER EQUITY
BANK'S NAM E
NET INCOME
TOTAL ASSETS
TOTAL LIABILITIES
1
NBP
23,028.00
2,369,885.00
2,194,503.00
125,693.00
2,684,102.00
1,327,311.00
2
HBL
8,182.00
2,495,286.00
188,815.00
MCB
22,459.00
1,173,745.00
153,566.00
4
АBL
12,734.00
1,245,712.00
1,138,996.00
106,716.00
5
SCB
8,245.00
513,548.00
450,611.00
57,335.00
6
FABL
4,515.00
488,027.00
488,795.00
39,232.00
7
HMB
5,864.00
651,124.00
607,262.00
43,862.00
8
ВАН
8,650.00
919,051.00
873,175.00
45,875.00
Required:
a) Calculate ROA, ROE, Total Assets to Shareholders Equity and Debt to Equity Ratios of all the
Banks.
b) Which Bank do you think has performed well and why? Explain in bullet-points.
c) Which of the above Bank or Banks you think have a leveraged position? What possible risk
factors are inherent with higher leveraged position? Explain in bullet points.
Transcribed Image Text:Q1: Please review the grid given below showing key financials for CY2019 of eight listed full-service commercial banks that are currently operating in Pakistan's financial landscape and answer the questions given below: Currency: PKR in Millions SHAREHOLDER EQUITY BANK'S NAM E NET INCOME TOTAL ASSETS TOTAL LIABILITIES 1 NBP 23,028.00 2,369,885.00 2,194,503.00 125,693.00 2,684,102.00 1,327,311.00 2 HBL 8,182.00 2,495,286.00 188,815.00 MCB 22,459.00 1,173,745.00 153,566.00 4 АBL 12,734.00 1,245,712.00 1,138,996.00 106,716.00 5 SCB 8,245.00 513,548.00 450,611.00 57,335.00 6 FABL 4,515.00 488,027.00 488,795.00 39,232.00 7 HMB 5,864.00 651,124.00 607,262.00 43,862.00 8 ВАН 8,650.00 919,051.00 873,175.00 45,875.00 Required: a) Calculate ROA, ROE, Total Assets to Shareholders Equity and Debt to Equity Ratios of all the Banks. b) Which Bank do you think has performed well and why? Explain in bullet-points. c) Which of the above Bank or Banks you think have a leveraged position? What possible risk factors are inherent with higher leveraged position? Explain in bullet points.
Expert Solution
steps

Step by step

Solved in 3 steps with 1 images

Blurred answer
Knowledge Booster
Balance Sheet Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education