Mention and explain the major line items on a bank’s income statement. What can the numbers on an income statement imply in terms of a bank’s risk management decisions?
Mention and explain the major line items on a bank’s income statement. What can the numbers on an income statement imply in terms of a bank’s risk management decisions?
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
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Mention and explain the major line items on a bank’s income statement. What can the numbers on an income statement imply in terms of a bank’s risk management decisions?
Transcribed Image Text:ΑΝΝEX 1
Dec 2019
Dec 2020
BANKING SECTOR: EARNINGS AND PROFITABILITY ANALYSIS
ROA
ROE
Net Interest Margin (NIM)
Spread
Burden Rat
Efficiency Ratio
3.00
3.10
14.90
16.00
9.10
9.10
7.98
8.01
3.45
3.73
67.60
66.30
Transcribed Image Text:A
B
D
1
ZED BANK - INCOME STATEMENT ANALYSIS
2
(K' 000)
Dec 2019
Dec 2020
3
4
Interest Income
Interest income from loans and advances
545,952
592,378
5
6
Interest income from investments in securities
218,882
224,592
Interest income from banks and financial institutions
26.913
27.616
844,586
7
Total Interest Income
791,747
10 Interest Expense
Interest expense paid on deposits
12 Interest expense paid to banks and financial institutions
13 Interest expense paid on other borrowed funds
Total Interest Expense
11
247,466
253,921
49,145
23.562
320,172
50,427
24.177
14
328,525
15
16
17 Operating Income (Total Revenue)
18 Interest Income
19 Non-interest income
20 Total Operating Income
791,747
844,586
459.957
1,251,705
471.956
1,316,542
21
22 Operating Expense
23 Interest expenses
24 Provision for loan losses
25 Non-interest expenses
26 Total Operating Expense
320,172
36,556
328,525
37,510
467,492
824,220
479,687
845,722
27
28 Profit before taxes (or Pre-tax Net Operating Income)
427,485
470,820
29
30 Taxes
43.250
70,740
31
32 Profit after taxes (or Net Income)
384,235
400,080
33
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