针对商业银行的经营评价(英文版)课件

第二章商业银行经营评价BalanceSheetIncomeStatementRelationshipbetweenBalanceSheetandIncomeStatementReturnonEquityModel股份制商业银行风险评级体系(04年2月22日)PerformanceCharacteristicsofDifferent-sizedBanks第二章商业银行经营评价BalanceSheetBalanceSheetItisastatementoffinancialpositionlistingassetsowned,liabilitiesowed,andowner’sequityasofaspecificdate.Assets=Liabilities+Equity.Balancesheetfiguresarecalculatedataparticularpointintimeandthusrepresentstockvalues.BalanceSheetItisastatementChinaBigFourBanks(12/31/2002)v.s.

AllUSBanks(12/31/2002)Asset(%)Liabilities(%)CNUSCNUSLoans60.261.4Deposits81.465.8Investments6.623.1Borrowings14.927.2Cash24.89.1Other8.47.4Capital3.87.1Total100100Total100100ChinaBigFourBanks(12/31/20PNCBank(12/31/2000,TA:63bn)v.s.

CommunityNationalBank(12/31/00,TA:0.1bn)Asset(%)Liabilities(%)PNCCNBPNCCNBLoans78.064.9Deposits72.891.7Investments8.725.6Borrowings18.91.0Cash5.65.7Other7.73.9Capital8.37.3Total100100Total100100PNCBank(12/31/2000,TA:63bBankAssets:LoansLoansarethemajorassetinmostbanks’portfoliosandgeneratethegreatestamountofincomebeforeexpensesandtaxes.Theyalsoexhibitthehighestdefaultriskandarerelativelyilliquid.BankAssets:LoansLoansarethLoans:CategoriesRealestateloansCommercialloansLoanstoindividualsAgriculturalloansOtherloansindomesticofficesLoansandleasesinforeignofficesThreeadjustmentsLeases;Unearnedincome;LossallowanceLoans:CategoriesRealestatelPNCandCNB:Loanportfolio(2000)PNCCNBRealestate37.037.0Commercial28.819.4Individuals5.64.3Agricultural0.00Domesticother7.34.7International0.50Unearnedincome-0.20Lossallowance-1.0-0.5Total78.064.9PNCandCNB:Loanportfolio(2BankAssets:InvestmentsecuritiesInvestmentsecuritiesareheldto

earninterest,helpmeetliquidityneedsspeculateoninterestratemovementsserveaspartofabank’sdealerfunctions.Theadministrationandtransactioncostsareextremelylow.BankAssets:InvestmentsecuriBankAssets:InvestmentsecuritiesShort-terminvestmentsInterest-bearingbankbalances(depositsduefromotherbanks)federalfundssoldsecuritiespurchasedunderagreementtoresell(RPs)TreasurybillsmunicipaltaxwarrantsLong-terminvestment:notesandbondsTreasurysecuritiesObligationsoffederalagenciesMortgage-backed,foreign,andcorporateBankAssets:InvestmentsecuriBankAssets:

NoninterestcashandduefrombanksItconsistsofvaultcash,depositsheldatFederalReserveBanksdepositsheldatotherfinancialinstitutionscashitemsintheprocessofcollectionTheseassetsareheldtomeetcustomerwithdrawalneedsmeetlegalreserverequirementsassistincheckclearingandwiretransferseffectthepurchaseandsaleofTreasurysecuritiesBankAssets:

NoninterestcashBankAssets:OtherassetsOtherassetsareresidualassetsofrelativelysmallmagnitudessuchasbankersacceptancespremisesandequipmentotherrealestateownedandothersmalleramountsBankAssets:OtherassetsOtheBankLiabilitiesThecharacteristicsofvariousdebtinstrumentsdifferintermsofcheck-writingcapabilitiesinterestpaidmaturitywhethertheycarryFDICinsurancewhethertheycanbetradedinthesecondarymarket.BankLiabilitiesThecharacteriBankliabilities:DepositsDemanddepositstransactionsaccountsthatpaynointerestNegotiableordersofwithdrawal(NOWs)andautomatictransfersfromsavings(ATS)accountspayinterestsetbyeachbankwithoutfederalrestrictionsMoneymarketdepositaccounts(MMDAs)paymarketrates,butacustomerislimitedtonomorethansixchecksorautomatictransferseachmonthBankliabilities:DepositsDemaBankliabilities:DepositsTwogeneraltimedepositscategoriesexist:Timedepositsinexcessof$100,000,labeledjumbocertificatesofdeposit(CDs).SmallCDs,consideredcoredepositswhichtendtobestabledepositsthataretypicallynotwithdrawnovershortperiodsoftime.DepositsheldinforeignofficesbalancesissuedbyabanksubsidiarylocatedoutsidetheU.S.Bankliabilities:DepositsTwoCoredopositsCoredepositsarestabledepositsthatarenothighlyinterestrate-sensitive.Coredepositsaremoresensitivetothefeescharged,servicesrendered,andlocationofthebank.Coredepositsinclude:demanddeposits,NOWaccounts,MMDAs,andsmalltimedeposits.CoredopositsCoredepositsareBorrowings(volatilefunds)Large,orvolatile,borrowingsareliabilitiesthatarehighlyrate-sensitive.Normallyissuedinuninsureddenominations.Theirabilitytoborrowissensitivetothemarketsperceptionoftheirassetquality.Volatileliabilitiesornetnon-coreliabilitiesinclude:largeCDs(over100,000)depositsinforeignofficesfederalfundspurchasedrepurchaseagreementsotherborrowingswithmaturitieslessthanoneyearBorrowings(volatilefunds)LarCapital:

SubordinatednotesanddebenturesNotesandbondswithmaturitiesinexcessofoneyear.Long-termuninsureddebt.Mostmeetrequirementsasbankcapitalforregulatorypurposes.Unlikedeposits,thedebtisnotfederallyinsuredandclaimsofbondholdersaresubordinatedtoclaimsofdepositors.Capital:

SubordinatednotesaCapital:Stockholders'equityOwnershipinterestinthebank.CommonandpreferredstockarelistedatparSurplusaccountrepresentstheamountofproceedsreceivedbythebankinexcessofparwhenitissuedthestock.Capital:Stockholders'equityOIncomeStatementItisafinancialstatementshowingasummaryofafirm’sfinancialoperationsforaspecificperiod,includingnetprofitorlossfortheperiodinquestion.Abank’sincomestatementreflectsthefinancialnatureofbanking,asinterestonloansandinvestmentscomprisesthebulkofrevenue.Netinterestincomemadeupapproximately77percentofnetrevenueatabankin1981,butonlyabout58percentoftotalnetrevenueattheendof2001.IncomeStatementItisafinancTheIncomestatement+ Interestincome(II)- Interestexpense(IE)= NetinterestIncome(NII)+ Noninterestincome(OI)- Noninterestexpense(OE)- Loan-lossprovisions(PLL)= Operatingincomebeforesecuritiestransactionsandtaxes +(-) Realizedgainsorlosses= Pretaxnetoperatingincome- Taxes = Netincome =burdenTheIncomestatement+ InterestInterestincome…thesumofinterestandfeesearnedonallofabank'sassets.…

Interestincomeincludesinterestfrom:LoansDepositsheldatotherinstitutionsMunicipalandtaxablesecuritiesInvestmentandtradingaccountsecuritiesInterestincome…thesumofintInterestexpense….thesumofinterestpaidonallinterest-bearingliabilities….Itincludesinterestpaidtotransactionsaccounts(NOW,ATS,andMMDA)timeandsavingsdepositsshort-termnon-coreliabilitieslong-termdebtInterestincomelessinterestexpenseis

netinterestincome(NII)Interestexpense….thesumofNoninterestincomeTrustorfiduciaryincomereflectswhatabankearnsfromoperatingatrustdepartmentFeesanddepositservicechargesreflectchargesoncheckingaccountactivity,safe-depositboxes,andmanyothertransactions.TradingrevenuesreflectcommissionsandprofitsorgainsfromoperatingatradingaccountOtherforeigntransactionsOthernoninterestincomeNoninterestincomeTrustorfidNoninterestexpensePersonnelexpense:SalariesandfringebenefitspaidtobankemployeesOccupancyexpense:RentanddepreciationonequipmentandpremisesOtheroperatingexpenses:UtilitiesandDepositinsurancepremiumsNoninterestexpensePersonneleLoan-lossprovisions(PLL)Representmanagement'sestimateofpotentiallostrevenuefrombadloans.Itissubtractedfromnetinterestincomeinrecognitionthatsomeofthereportedinterestincomeoverstateswhatwillactuallybereceivedwhensomeoftheloansgointodefault.Charge-offsindicateloansthatabankformallyrecognizesasuncollectableandcharges-offagainstthelossreserve.Loan-lossprovisions(PLL)Repr针对商业银行的经营评价(英文版)Incomestatement:PNC&CNB,2000+ Interestincome(II) 72%&92%- Interestexpense(IE) 38%&27%= NetinterestIncome(NII)+ Noninterestincome(OI) 27%&8%- Noninterestexpense(OE) 35%&46%- Loan-lossprovisions(PLL) 2.1%&1.7%= Operatingincomebeforesecuritiestransactionsandtaxes +(-) Realizedgainsorlosses 0.3%&0%= Pretaxnetoperatingincome- Taxes 8.5%&8.6%= Netincome 16.3%&16.0%Incomestatement:PNC&CNB,20Realizedsecuritiesgains(orlosses)Theyarisewhenabanksellssecuritiesfromitsinvestmentportfolioatpricesabove(orbelow)theinitialoramortizedcosttothebank.Generally,securitieschangeinvalueasinterestrateschange,butthegainsorlossesareunrealized(meaningthatthebankhasnotsoldthesecuritiestocapturethechangeinvalue).Realizedsecuritiesgains(orRelationshipbetweenbalancesheetandincomestatementThecompositionofassetsandliabilitiesandtherelationshipsbetweendifferentinterestratesdeterminenetinterestincome.Themixofdepositsbetweenconsumerandcommercialcustomersaffectstheservicesprovidedandthusthemagnitudeofnoninterestincomeandnoninterestexpense.Theownershipofnonbanksubsidiariesincreasesfeeincomebutoftenraisesnoninterestexpense.RelationshipbetweenbalancesRelationshipbetweenbalancesheet

andincomestatementExpensesandloanlossesdirectlyeffectthebalancesheet.Thegreaterthesizeofloanportfolio,thegreaterisoperatingoverheadandPLL.Consumerloansareusuallysmallerandhencemoreexpensive(non-interest)perdollarofloans.RelationshipbetweenbalancesReturnonequity(ROE=NI/TE)

…thebasicmeasureofstockholders’returnsROEiscomposedoftwoparts:ReturnonAssets(ROA=NI/TA)representsthereturnstotheassetsthebankhasinvestedin.EquityMultiplier(EM=TA/TE)thedegreeoffinancialleverageemployedbythebank.Returnonequity(ROE=NI/TReturnonassets(ROA=NI/TA)

…canbedecomposedintotwoparts:

Assetutilization(AU)→incomegeneration

Expenseratio(ER)→expensecontrolROA = AU－ER

=(TR/TA)－(TE/TA)TR =totalrevenueortotaloperatingincome

=Int.inc.+non-int.inc.+SG(L)TE =totalexpenses

=Int.exp.+non-int.exp.+PLL+TaxesReturnonassets(ROA=NI/T针对商业银行的经营评价(英文版)Assetutilization(AU=TR/TA):

…theabilitytogenerateincome.InterestIncome/TAAssetyields(rate)Interestincomeasset(i)/$amountofasset(i)Compositionofassets(mix)$amountasset(i)/TAVolumeofEarningAssetsEarningassets/TANoninterestincome/TAFeesandServiceChargesSecuritiesGains(Losses)OtherincomeAssetutilization(AU=TR/TExpenseratio(ER=Exp/TA)

…theabilitytocontrolexpenses.Interestexpense/TACostperliability(rate)Int.exp.liab.(j)/$amt.liab.(j)Compositionofliabilities$amt.ofliab.(j)/TAVolumeofdebtandequityNon-interestexpenses/TASalariesandemployeebenefits/TAOccupancyexpenses/TAOtheroperatingexpense/TAProvisionsforloanlosses/TATaxes/TAExpenseratio(ER=Exp/TA)

OtheraggregateprofitabilitymeasuresNetinterestmarginNIM=NII/earningassets(EA)SpreadSpread=(intinc/EA)-(intexp/intbear.Liab.)EarningsbaseEB=EA/TABurden/TA(Noninterestexp.-Noninterestincome)/TAEfficiencyratioNonint.Exp./(Netint.Inc.+Nonint.Inc.)OtheraggregateprofitabilityFinancialratios…PNC,2000ROE:NetIncome/AverageTotalequity18.9%ROA:NetIncome/AvgTA1.5%AU:TotalRevenue/AvgTA9.2%ER:Totalexpenses(lessTaxes)/AvgTA7.0%Memo:PM:NetIncome/TotalRevenue16.2%EM:Avg.TA/Avg,TotalEquity12.6xEB:EarningAssets/AvgTA87.0%NIM:Netinterestmargin3.6%Spread3.1%EfficiencyRatio57.2%Burden/Avg.TotalAssets0.7%NonInterestIncome/Noninterestexp.78.3%Financialratios…PNC,2000ROE:针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)针对商业银行的经营评价(英文版)PerformanceCharacteristicsofDifferent-sizedBanks:TrendwithSizePerformanceCharacteristicsofEquitycapitalratioEquitycapitalratioCorecapital(leverage)ratioCorecapital(leverage)ratioTier1risk-basedcapitalratioTier1risk-basedcapitalratiTotalrisk-basedcapitalratioTotalrisk-basedcapitalratioNetinterestmarginNetinterestmarginYieldonearningassetsYieldonearningassetsCostoffundingearningassetsCostoffundingearningassetsEarningassetstototalassetsEarningassetstototalassetsEfficiencyratioEfficiencyratioNoninterestincometoearning

assetsNoninterestincometoearningNoninterestexpensetoearning

assetsNoninterestexpensetoearningLN&LSlossprovisiontoassetsLN&LSlossprovisiontoassetsUSBanks:ROA(2002)USBanks:ROA(2002)USBanks:ROE(2002)USBanks:ROE(2002)US&ChineseBanks:ROA(2002)US&ChineseBanks:ROA(2002)US&ChineseBanks:ROE(2002)US&ChineseBanks:ROE(2002)更多资料请到..365

天天学习网免费下载更多资料请到..365天天学习网第二章商业银行经营评价BalanceSheetIncomeStatementRelationshipbetweenBalanceSheetandIncomeStatementReturnonEquityModel股份制商业银行风险评级体系(04年2月22日)PerformanceCharacteristicsofDifferent-sizedBanks第二章商业银行经营评价BalanceSheetBalanceSheetItisastatementoffinancialpositionlistingassetsowned,liabilitiesowed,andowner’sequityasofaspecificdate.Assets=Liabilities+Equity.Balancesheetfiguresarecalculatedataparticularpointintimeandthusrepresentstockvalues.BalanceSheetItisastatementChinaBigFourBanks(12/31/2002)v.s.

AllUSBanks(12/31/2002)Asset(%)Liabilities(%)CNUSCNUSLoans60.261.4Deposits81.465.8Investments6.623.1Borrowings14.927.2Cash24.89.1Other8.47.4Capital3.87.1Total100100Total100100ChinaBigFourBanks(12/31/20PNCBank(12/31/2000,TA:63bn)v.s.

CommunityNationalBank(12/31/00,TA:0.1bn)Asset(%)Liabilities(%)PNCCNBPNCCNBLoans78.064.9Deposits72.891.7Investments8.725.6Borrowings18.91.0Cash5.65.7Other7.73.9Capital8.37.3Total100100Total100100PNCBank(12/31/2000,TA:63bBankAssets:LoansLoansarethemajorassetinmostbanks’portfoliosandgeneratethegreatestamountofincomebeforeexpensesandtaxes.Theyalsoexhibitthehighestdefaultriskandarerelativelyilliquid.BankAssets:LoansLoansarethLoans:CategoriesRealestateloansCommercialloansLoanstoindividualsAgriculturalloansOtherloansindomesticofficesLoansandleasesinforeignofficesThreeadjustmentsLeases;Unearnedincome;LossallowanceLoans:CategoriesRealestatelPNCandCNB:Loanportfolio(2000)PNCCNBRealestate37.037.0Commercial28.819.4Individuals5.64.3Agricultural0.00Domesticother7.34.7International0.50Unearnedincome-0.20Lossallowance-1.0-0.5Total78.064.9PNCandCNB:Loanportfolio(2BankAssets:InvestmentsecuritiesInvestmentsecuritiesareheldto

earninterest,helpmeetliquidityneedsspeculateoninterestratemovementsserveaspartofabank’sdealerfunctions.Theadministrationandtransactioncostsareextremelylow.BankAssets:InvestmentsecuriBankAssets:InvestmentsecuritiesShort-terminvestmentsInterest-bearingbankbalances(depositsduefromotherbanks)federalfundssoldsecuritiespurchasedunderagreementtoresell(RPs)TreasurybillsmunicipaltaxwarrantsLong-terminvestment:notesandbondsTreasurysecuritiesObligationsoffederalagenciesMortgage-backed,foreign,andcorporateBankAssets:InvestmentsecuriBankAssets:

NoninterestcashandduefrombanksItconsistsofvaultcash,depositsheldatFederalReserveBanksdepositsheldatotherfinancialinstitutionscashitemsintheprocessofcollectionTheseassetsareheldtomeetcustomerwithdrawalneedsmeetlegalreserverequirementsassistincheckclearingandwiretransferseffectthepurchaseandsaleofTreasurysecuritiesBankAssets:

NoninterestcashBankAssets:OtherassetsOtherassetsareresidualassetsofrelativelysmallmagnitudessuchasbankersacceptancespremisesandequipmentotherrealestateownedandothersmalleramountsBankAssets:OtherassetsOtheBankLiabilitiesThecharacteristicsofvariousdebtinstrumentsdifferintermsofcheck-writingcapabilitiesinterestpaidmaturitywhethertheycarryFDICinsurancewhethertheycanbetradedinthesecondarymarket.BankLiabilitiesThecharacteriBankliabilities:DepositsDemanddepositstransactionsaccountsthatpaynointerestNegotiableordersofwithdrawal(NOWs)andautomatictransfersfromsavings(ATS)accountspayinterestsetbyeachbankwithoutfederalrestrictionsMoneymarketdepositaccounts(MMDAs)paymarketrates,butacustomerislimitedtonomorethansixchecksorautomatictransferseachmonthBankliabilities:DepositsDemaBankliabilities:DepositsTwogeneraltimedepositscategoriesexist:Timedepositsinexcessof$100,000,labeledjumbocertificatesofdeposit(CDs).SmallCDs,consideredcoredepositswhichtendtobestabledepositsthataretypicallynotwithdrawnovershortperiodsoftime.DepositsheldinforeignofficesbalancesissuedbyabanksubsidiarylocatedoutsidetheU.S.Bankliabilities:DepositsTwoCoredopositsCoredepositsarestabledepositsthatarenothighlyinterestrate-sensitive.Coredepositsaremoresensitivetothefeescharged,servicesrendered,andlocationofthebank.Coredepositsinclude:demanddeposits,NOWaccounts,MMDAs,andsmalltimedeposits.CoredopositsCoredepositsareBorrowings(volatilefunds)Large,orvolatile,borrowingsareliabilitiesthatarehighlyrate-sensitive.Normallyissuedinuninsureddenominations.Theirabilitytoborrowissensitivetothemarketsperceptionoftheirassetquality.Volatileliabilitiesornetnon-coreliabilitiesinclude:largeCDs(over100,000)depositsinforeignofficesfederalfundspurchasedrepurchaseagreementsotherborrowingswithmaturitieslessthanoneyearBorrowings(volatilefunds)LarCapital:

SubordinatednotesanddebenturesNotesandbondswithmaturitiesinexcessofoneyear.Long-termuninsureddebt.Mostmeetrequirementsasbankcapitalforregulatorypurposes.Unlikedeposits,thedebtisnotfederallyinsuredandclaimsofbondholdersaresubordinatedtoclaimsofdepositors.Capital:

SubordinatednotesaCapital:Stockholders'equityOwnershipinterestinthebank.CommonandpreferredstockarelistedatparSurplusaccountrepresentstheamountofproceedsreceivedbythebankinexcessofparwhenitissuedthestock.Capital:Stockholders'equityOIncomeStatementItisafinancialstatementshowingasummaryofafirm’sfinancialoperationsforaspecificperiod,includingnetprofitorlossfortheperiodinquestion.Abank’sincomestatementreflectsthefinancialnatureofbanking,asinterestonloansandinvestmentscomprisesthebulkofrevenue.Netinterestincomemadeupapproximately77percentofnetrevenueatabankin1981,butonlyabout58percentoftotalnetrevenueattheendof2001.IncomeStatementItisafinancTheIncomestatement+ Interestincome(II)- Interestexpense(IE)= NetinterestIncome(NII)+ Noninterestincome(OI)- Noninterestexpense(OE)- Loan-lossprovisions(PLL)= Operatingincomebeforesecuritiestransactionsandtaxes +(-) Realizedgainsorlosses= Pretaxnetoperatingincome- Taxes = Netincome =burdenTheIncomestatement+ InterestInterestincome…thesumofinterestandfeesearnedonallofabank'sassets.…

Interestincomeincludesinterestfrom:LoansDepositsheldatotherinstitutionsMunicipalandtaxablesecuritiesInvestmentandtradingaccountsecuritiesInterestincome…thesumofintInterestexpense….thesumofinterestpaidonallinterest-bearingliabilities….Itincludesinterestpaidtotransactionsaccounts(NOW,ATS,andMMDA)timeandsavingsdepositsshort-termnon-coreliabilitieslong-termdebtInterestincomelessinterestexpenseis

netinterestincome(NII)Interestexpense….thesumofNoninterestincomeTrustorfiduciaryincomereflectswhatabankearnsfromoperatingatrustdepartmentFeesanddepositservicechargesreflectchargesoncheckingaccountactivity,safe-depositboxes,andmanyothertransactions.TradingrevenuesreflectcommissionsandprofitsorgainsfromoperatingatradingaccountOtherforeigntransactionsOthernoninterestincomeNoninterestincomeTrustorfidNoninterestexpensePersonnelexpense:SalariesandfringebenefitspaidtobankemployeesOccupancyexpense:RentanddepreciationonequipmentandpremisesOtheroperatingexpenses:UtilitiesandDepositinsurancepremiumsNoninterestexpensePersonneleLoan-lossprovisions(PLL)Representmanagement'sestimateofpotentiallostrevenuefrombadloans.Itissubtractedfromnetinterestincomeinrecognitionthatsomeofthereportedinterestincomeoverstateswhatwillactuallybereceivedwhensomeoftheloansgointodefault.Charge-offsindicateloansthatabankformallyrecognizesasuncollectableandcharges-offagainstthelossreserve.Loan-lossprovisions(PLL)Repr针对商业银行的经营评价(英文版)Incomestatement:PNC&CNB,2000+ Interestincome(II) 72%&92%- Interestexpense(IE) 38%&27%= NetinterestIncome(NII)+ Noninterestincome(OI) 27%&8%- Noninterestexpense(OE) 35%&46%- Loan-lossprovisions(PLL) 2.1%&1.7%= Operatingincomebeforesecuritiestransactionsandtaxes +(-) Realizedgainsorlosses 0.3%&0%= Pretaxnetoperatingincome- Taxes 8.5%&8.6%= Netincome 16.3%&16.0%Incomestatement:PNC&CNB,20Realizedsecuritiesgains(orlosses)Theyarisewhenabanksellssecuritiesfromitsinvestmentportfolioatpricesabove(orbelow)theinitialoramortizedcosttothebank.Generally,securitieschangeinvalueasinterestrateschange,butthegainsorlossesareunrealized(meaningthatthebankhasnotsoldthesecuritiestocapturethechangeinvalue).Realizedsecuritiesgains(orRelationshipbetweenbalancesheetandincomestatementThecompositionofassetsandliabilitiesandtherelationshipsbetweendifferentinterestratesdeterminenetinterestincome.Themixofdepositsbetweenconsumerandcommercialcustomersaffectstheservicesprovidedandthusthemagnitudeofnoninterestincomeandnoninterestexpense.Theownershipofnonbanksubsidiariesincreasesfeeincomebutoftenraisesnoninterestexpense.RelationshipbetweenbalancesRelationshipbetweenbalancesheet

andincomestatementExpensesandloanlossesdirectlyeffectthebalancesheet.Thegreaterthesizeofloanportfolio,thegreaterisoperatingoverheadandPLL.Consumerloansareusuallysmallerandhencemoreexpensive(non-interest)perdollarofloans.RelationshipbetweenbalancesReturnonequity(ROE=NI/TE)

…thebasicmeasureofstockholders’returnsROEiscomposedoftwoparts:ReturnonAssets(ROA=NI/TA)representsthereturnstotheassetsthebankhasinvestedin.EquityMultiplier(EM=TA/TE)thedegreeoffinancialleverageemployedbythebank.Returnonequity(ROE=NI/TReturnonassets(ROA=NI/TA)

…canbedecomposedintotwoparts:

Assetutilization(AU)→incomegeneration

Expenseratio(ER)→expensecontrolROA = AU－ER

=(TR/TA)－(TE/TA)TR =totalrevenueortotaloperatingincome

=Int.inc.+non-int.inc.+SG(L)TE =totalexpenses

=Int.exp.+non-int.exp.+PLL+TaxesReturnonassets(ROA=NI/T针对商业银行的经营评价(英文版)Assetutilization(AU=TR/TA):

…theabilitytogenerateincome.InterestIncome/TAAssetyields(rate)Interestincomeasset(i)/$amountofasset(i)Compositionof