Fig Tree Bank has provided the following financial statements for the year ended 2020. Consolidated income statement 2019 2020 Sh ‘000’ sh. ‘000’ Interest income 7,169 8,500 Interest expense 1,217 4,600 Net interest income 5,952 3,900 Fee & commission income 1,308 1,800 Net trading income 734 1,700 Other operating income 3,562 3,100 Total operating income 11,556 10,500 Net impairment loss on financial Assets 875 1,200 Personnel expenses 2,584 2,300 Operating lease expenses 357 357 Depreciation & amortization 712 712 Other expenses 2,271 1,900 Total expenses 6,799 6.469 Profit before tax 4,757 4,031 Income tax expense 1,427.1 1,209.3 Profit for the year 3,329.9 2,821.7 Consolidated statement of financial position Cash and cash equivalent 12,000 13,500 Loans & advances to customers 50,000 48,700 Property & equipment 8,000 8,000 Other assets 4,000 4,300 Total assets 74,000 74,500 Liabilities Deposits from customers 44,000 41,800 Current tax liabilities 5,000 5,000 Long term borrowings 6,000 6,000 Total liabilities 55,000 52,800 Equity Share capital 13,000 18,000 Retained earnings 4,000 1,700 Other reserves 2,000 2,000 Total equity 19,000 21,700 Total liabilities & equity 74,000 74,500 Additional information Assume market price per share of sh. 20 in 2019 and sh. 15 in 2020 Assume 1,000,000 outstanding shares for the 2 years Dividend per share for 2019 and 2020 is sh. Required: Analyze the performance of the bank using ratios.
Fig Tree Bank has provided the following financial statements for the year ended 2020.
Consolidated income statement
2019 2020
Sh ‘000’ sh. ‘000’
Interest income 7,169 8,500
Interest expense 1,217 4,600
Net interest income 5,952 3,900
Fee & commission income 1,308 1,800
Net trading income 734 1,700
Other operating income 3,562 3,100
Total operating income 11,556 10,500
Net impairment loss on financial
Assets 875 1,200
Personnel expenses 2,584 2,300
Operating lease expenses 357 357
Depreciation & amortization 712 712
Other expenses 2,271 1,900
Total expenses 6,799 6.469
Profit before tax 4,757 4,031
Income tax expense 1,427.1 1,209.3
Profit for the year 3,329.9 2,821.7
Consolidated statement of financial position
Cash and cash equivalent 12,000 13,500
Loans & advances to customers 50,000 48,700
Property & equipment 8,000 8,000
Other assets 4,000 4,300
Total assets 74,000 74,500
Liabilities
Deposits from customers 44,000 41,800
Current tax liabilities 5,000 5,000
Long term borrowings 6,000 6,000
Total liabilities 55,000 52,800
Equity
Share capital 13,000 18,000
Other reserves 2,000 2,000
Total equity 19,000 21,700
Total liabilities & equity 74,000 74,500
Additional information
- Assume market price per share of sh. 20 in 2019 and sh. 15 in 2020
- Assume 1,000,000 outstanding shares for the 2 years
- Dividend per share for 2019 and 2020 is sh.
Required:
Analyze the performance of the bank using ratios.
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