Accounting: A Business Perspective

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Table of Contents

Background of Companies

Background of NAB

As a financial institution, National Australia Bank serves the business and consumer world with over 40,000 people, operating more than 1,800 branches and service centres. 460,000 shareholders have ownership in this bank by means of common and preferred shares. It has its major and operational franchises in Australia, New Zealand, Asia, United Kingdom and the United States. It has positioned its brands in a very unique manner based upon a unifying commitment of providing quality financial products and services. It not only pays special emphasis upon extension of consumer, business, agricultural, mortgage and other loans but also provides many other transaction services. It works on the principles of help, guidance and advice.  (National Bank of Australia, 2011).

Background of ANZ

As a financial institution, ANZ is one of the largest companies in New Zealand and Australia. It is not only well known in these two countries but also enjoys good reputation all over the world. Its international reputation can be accessed from the fact that it is among the top 50 banks of the world. It has it’s headquarter in Melbourne, Australia. It started off as the Bank of Australasia in Sydney in 1835 and in Melbourne in 1838. Currently, it is one of the most financially sound financial institutions in the world with many operational branches (ANZ, 2011).
 

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Financial Analysis

Financial examiners continually monitor the financial health of financial institutions by looking at several key ratios (Federal Reserve Bank of NewYork, 2006, p. 2). This aspect has gained extreme importance as new and innovative tools for the recording and assessment of financial transactions are now available which have made the compliance with financial regulations even more important (Fowzia & Nasrin, 2011, p. 1).

Financial Analysis of NAB

In order to perform a complete financial analysis of the National Australian bank, several important ratios have to be assessed and analysed. It is important to note that the financial statements of financial institutions are morphologically different from those of non-financial businesses. But, it is also important to note that the financial reporting of financial institutions also follows certain sets of rules (Alwosabi, 2010, p. 4).
The financial position of National Australian Bank can be assessed by looking at several key assessment ratios.
Table 2, Appendix 1 shows that the return on equity capital has gone up by 59% over the year which shows that the company’s net operating margin has gone up by a significant margin. This claim can also be verified by looking at the return on assets which has gone up by 56%. As compared to the return on equity, the return on assets has gone up less as the increase in assets has been greater than the increase net operating revenue. The banks interest margin has gone down over the year while the non interest margin has gone significantly up over the year. This shows that the bank has been able to increase its non interest earnings over the year.

It can also be assessed that the earning spread which is a key ratio for financial assessment of a bank has gone up over the year by 2%. This shows that the generation of operating revenues from the earning assets has been better than the generation of expenses from the liabilities. This ratio also assesses the degree of competitiveness within the industry (Rose, 2001, p. 155). An increase in this ratio simply tells that the competition has gone down in the industry.
It can also be seen that the net profit margin has gone up for the bank over the year by 71% which is a significant achievement. However, the asset utilization of the bank has gone down over the year. It can also be seen that the equity multiplier has gone up by 2% over the year. This is mainly because of an increase in assets. The tax management efficiency of the company has significantly improved over the year and has gone up by 43%. The bank has also been able to control its expenses better in 2010 as the expense management efficiency has gone up by 20% over the year.

Table 3, Appendix 1 shows the common size income statement analysis. The interest income makes up 83% of the total income and this figure has gone up by 0.69% over the year. The profit after tax makes up 12.51% of the total revenue base.

 Table 4, Appendix 1 shows the common size analysis of the balance sheet. The net loan and advances make 51% of the total assets. 94% of the financing has been done by liabilities and less than 6% has been financed by equity. This highly leveraged structure is a key aspect of the banking sector.

Table 5, Appendix 1 shows the trend index analysis of the income statement. The interest income of the company has gone down over the year and same has been the case with the interest expenses. The non-interest income has gone down over the year while the non-interest expense has gone up over the year. It is interesting to note that despite of the overall decrease in the revenues streams, the net profit after tax has gone up by 63% over the year. This has mainly been because of an excellence in tax management and expense control.
Table 6, Appendix 1 shows the trend index of the balance sheet. The net loans and advances of the company have gone up by 3% over the year. The total assets of the company have gone up by 5% over the year. The total liabilities have also gone up by 5% over the year. The total equity has gone up by 3% over the year. The premises and equipment have gone up by 4% over the year.  

Financial Analysis of ANZ

In order to perform a complete financial analysis of the ANZ, several important ratios have to be assessed and analysed. It is important to note that the financial statements of financial institutions have to be designed in such a way as to account for the operational as well as the non -operational risks associated with the banking business (Allen & CarlettiI, 2008, p. 1).
The financial position of National Australian Bank can be assessed by looking at several key assessment ratios.
Table 2, Appendix 2 shows that the return on equity capital has gone up by 45% over the year which shows that the company’s net operating margin has gone up by a significant margin. This claim can also be verified by looking at the return on assets which has gone up by 37%. As compared to the return on equity, the return on assets has gone up less as the increase in assets has been greater than the increase net operating revenue. The banks interest margin has gone down over the year while the non interest margin has gone significantly up over the year. This shows that the bank has been able to increase its non interest earnings over the year.

It can also be assessed that the earning spread which is a key ratio for financial assessment of a bank has gone up over the year by 9%. This shows that the generation of operating revenues from the earning assets has been better than the generation of expenses from the liabilities. This ratio also assesses the degree of competitiveness within the industry (Rose, 2001, p. 155). An
increase in this ratio simply tells that the competition has gone down in the industry.
It can also be seen that the net profit margin has gone up for the bank over the year by 44% which is a significant achievement. However, the asset utilization of the bank has gone down over the year. It can also be seen that the equity multiplier has gone up by 6% over the year. This is mainly because of an increase in assets. The tax management efficiency of the company has y improved over the year and has gone up by 2%. The bank has also been able to control its expenses really well in 2010 as the expense management efficiency has gone up by 42% over the year. This has directly translated itself into an increase in overall profitability of the bank.  

Table 3, Appendix 2 shows the common size income statement analysis. The interest income makes up 62.9% of the total income and this figure has gone down by 4.53% over the year. This shows a greater reliance of the bank upon non-interest income as it makes up 37.1% of the total revenue and has seen an increase over the year. The profit after tax makes up 10.65% of the total revenue base.

Table 4, Appendix 1 shows the common size analysis of the balance sheet. The net loan and advances make 65.69% of the total assets. 93% of the financing has been done by liabilities and less than 7% has been financed by equity. This highly leveraged structure is a key aspect of the banking sector.

Table 5, Appendix 2 shows the trend index analysis of the income statement. The interest income of the company has gone up over the year while the interest expenses have gone down by 4% over the year. The non-interest income has gone up over the year and the non-interest expense has also gone up by 17.33% over the year. Therefore, owing to the good tax management, excellent expense control management, increase in interest income, decrease in interest expense and an increase in non- interest income, the overall profitability of the company has gone up by 52.97% over the year which is a significant increase.  
Table 6, Appendix 2 shows the trend index of the balance sheet. The net loans and advances of the company have gone up by 5.21% over the year. The total assets of the company have gone up by 11.48% over the year. The total liabilities have also gone up by 11.93% over the year. The total equity has gone up by 5.32% over the year. The premises and equipment have gone up by 4.66% over the year. 

Comparison of two companies

Holistically analysing, both ANZ and NAB are enjoying sound financial statuses. The earning spread of both the banks shows that the competition within the industry is no very intense. This might be due to some conditioned factors or a hidden cartel formed between the banks. Both the banks have seen good profitability over the years. Both the banks have been able to manage taxes as well as expenses in efficient manners.
The NAB bank seems to be in a better financial condition as compared to the NAB bank. This is because
  • Despite of the fact that the NAB bank has not been able to increase its interest income and decrease its interest expense, its overall profitability has gone up by 63% as compared to 52% of ANZ. This has mainly been because of excellence in expense control and tax management efficiency.
  • The earning spread is one of the key ratios to assess the financial performance. If both the banks are assessed by looking at this ratio then NAB seem to be better than the ANZ.
  • The funds management efficiency of NAB has been better than that of ANZ. NAB’s fund management efficiency ratio is 17.609 while that of ANZ is 15.568.
  • The operating efficiency of NAB has been better than that of ANZ. The operating efficiency of NAB has been 0.773 while that of ANZ has been 0.545.
  • The tax management efficiency ratio of NAB has been better than that of ANZ. The tax management efficiency ratio of NAB has been 0.744 while that of ANZ has been 0.682.
  • The expense control efficiency of NAB has been better than that of ANZ. The expense control efficiency ratio of NAB has been 0.168 while that of ANZ has been 0.156.
  • The net profit margin of NAB has been better than that of ANZ. The net profit margin ratio of NAB has been 0.125 while that of ANZ has been 0.107.
Therefore, by looking at the above mentioned analysis, it becomes quite evident that the NAB has performed better than ANZ in 2010. However, this difference only exists by a very slight margin. It is also important to note that ANZ utilized its assets better than NAB. It was also able to yield greater interest and non interest margins. Its jus that the NAB bank controlled its interest as well as non-interest expenses really well. However, both the banks are financially very strong.

REFERENCES

Allen, F., & CarlettiI, E. (2008). Should financial institutions mark-to-market? p.3.
Alwosabi, D. M. (2010). The Basic Principles of Islamic Financial Institutions compared to Conventional Ones. 1-5.
ANZ. (2011, August). Retrieved 2011, from ANZ History: http://www.anz.com/about-us/our-company/profile/facts/history
Federal Reserve Bank of NewYork. (2006). Industry Sound Practices for Financial and Accounting Controls at Financial Institutions. p.1-2.
Fowzia, R., & Nasrin, M. (2011). Appreciation of Computerized Accounting System in Financial Institutions in Bangladesh. World Review of Business Research , Vol. 1. (2), p.1 - 9.
Grody, A. D., Hughes, P. J., & Toms, S. (2010). Risk Accounting - A Next Generation Risk Management System for Financial Institutions. p.43-56.
National Bank of Australia. (2011, August). Retrieved 2011, from Nab History: http://www.nabgroup.com/0,,32714,00.html
Rose, P. S. (2001). Commercial Bank Management. Irwin: McGraw-Hill.
Tag El-Din, D. S. (2004). Issues in Accounting Standrads for Islamic Financial Institutions. 

APPENDIX 1

Table 1

Annual Financial Report, 2010 [online], Available at: <http://annualreports.nabgroup.com/pdf/nab2010afr.pdf> [Accessed 8 August, 2011]

NAB INCOME STATEMENT

   
  2010 2009 GROWTH ACHIEVEMENT
INTEREST INCOME 29824 31102 -4.11% -1278
INTEREST EXPENSE 17568 19034 -7.70% -1466
NET INTEREST INCOME 12256 12068 1.56% 188
OPERATING INCOME 3939 4352 -9.49% -413
OPERATING EXPENSE 8541 7979 7.04% 562
PROSIT BEFORE CREDIT IMPAIREMENT LOSS & INCOME TAX 8467 8798 -3.76% -331
PROVISION FOR CREDIT IMAIREMENT 2791 3815 -26.84% -1024
PROFIT BEFORE INCOME TAX EXPENSE 5676 4983 13.91% 693
INCOME TAX EXPENSE 1451 2394 -39.39% -943
PROFIT AFTER INCOME TAX 4225 2589 63.19% 1636
PROFIT ATTIBUTABLE TO SHAREHOLDERS OF THE COMPANY 4225 2589 63.19% 1636
 

NAB BALANCE SHEET

     
  2010 2009 GROWTH ACHIEVEMENT  
LIQUID ASSETS 26072 25834 0.92% 238  
DUE FROM OTHER FIS 37679 33265 13.27% 4414  
TRADING SECURITIES 25821 22219 16.21% 3602  
NET LOANS & ADVANCES 354835 344774 2.92% 10061  
GOODWILL & OTHER INTANGIBLE ASSETS 7077 6243 13.36% 834  
PREMISES & EQUIPMENT 1778 1716 3.61% 62  
TOTAL ASSETS 685952 654120 4.87% 31832  
DUE TO OTHER FIS 37612 36148 4.05% 1464  
DEPOSITS AND OTHER BORROWINGS 353232 336188 5.07% 17044  
PROVISIONS 1445 1555 -7.07% -110  
BONDS AND NOTES 93203 90792 2.66% 2411  
LOAN CAPITAL 2502 2527 -0.99% -25  
TOTAL LIABILITIES 646998 616285 4.98% 30713  
ORDINARY SHARE EQUITY 18637 17867 4.31% 770  
PREFERENCE SHARE CAPITTAL 4914 4914 0.00% 0  
RESERVES 639 976 -34.53% -337  
RETAINED EARNINGS 16028 16010 0.11% 18  
TOTAL SHAREHOLDER EQUITY 38954 37835 2.96% 1119  
                   
 

Table 2

KEY FINANCIAL RATIOS

  2010 2009 GROWTH ACHIEVEMENT
RETURN ON EQUITY CAPITAL 0.108 0.068 59% 0.04
RETURN ON ASSETS 0.006 0.004 56% 0.00
NET INTEREST MARGIN 0.018 0.018 -3% (0.00)
NET NON INTEREST MARGIN (0.007) (0.006) 21% (0.00)
NET BANK OPERATING MARGIN 0.011 0.013 -14% (0.00)
EARNING SPREAD 0.034 0.034 2% 0.00
NET PROFIT MARGIN 0.125 0.073 71% 0.05
ASSET UTILIZATION 0.049 0.054 -9% (0.00)
EQUITY MULTIPLIER 17.609 17.289 2% 0.32
TAX MANAGEMENT EFFICIENCY 0.744 0.520 43% 0.22
EXPENSE CONTROL EFFIEICNCY 0.168 0.141 20% 0.03
ASSET MANAGEMENT EFFICIENCY 0.049 0.054 -9% (0.00)
FUNDS MANAGEMENT EFFICIENCY 17.609 17.289 2% 0.32
OPERATING EFFICIENCY 0.773 0.762 1% 0.01
 

Table 3

COMMON SIZE INCOME STATEMENT

  2010 2009 GROWTH ACHIEVEMENT
INTEREST INCOME 88.33% 87.72% 0.69% 0.61%
INTEREST EXPENSE 52.03% 53.69% -3.08% -1.65%
NET INTEREST INCOME 36.30% 34.04% 6.64% 2.26%
OPERATING INCOME 11.67% 12.28% -4.96% -0.61%
OPERATING EXPENSE 25.30% 22.51% 12.40% 2.79%
PROSIT BEFORE CREDIT IMPAIREMENT LOSS & INCOME TAX 25.08% 24.82% 1.06% 0.26%
PROVISION FOR CREDIT IMAIREMENT 8.27% 10.76% -23.18% -2.49%
PROFIT BEFORE INCOME TAX EXPENSE 16.81% 14.05% 19.61% 2.76%
INCOME TAX EXPENSE 4.30% 6.75% -36.35% -2.45%
PROFIT AFTER INCOME TAX 12.51% 7.30% 71.36% 5.21%
PROFIT ATTIBUTABLE TO SHAREHOLDERS OF THE COMPANY 12.51% 7.30% 71.36% 5.21%
 

Table 4

COMMON SIZE BALANCE SHEET

  2010 2009 GROWTH ACHIEVEMENT
LIQUID ASSETS 3.80% 3.95% -3.76% -0.15%
DUE FROM OTHER FIS 5.49% 5.09% 8.01% 0.41%
TRADING SECURITIES 3.76% 3.40% 10.82% 0.37%
NET LOANS & ADVANCES 51.73% 52.71% -1.86% -0.98%
GOODWILL & OTHER INTANGIBLE ASSETS 1.03% 0.95% 8.10% 0.08%
PREMISES & EQUIPMENT 0.26% 0.26% -1.20% 0.00%
TOTAL ASSETS 100.00% 100.00% 0.00% 0.00%
DUE TO OTHER FIS 5.48% 5.53% -0.78% -0.04%
DEPOSITS AND OTHER BORROWINGS 51.50% 51.40% 0.19% 0.10%
PROVISIONS 0.21% 0.24% -11.39% -0.03%
BONDS AND NOTES 13.59% 13.88% -2.11% -0.29%
LOAN CAPITAL 0.36% 0.39% -5.58% -0.02%
TOTAL LIABILITIES 94.32% 94.22% 0.11% 0.11%
ORDINARY SHARE EQUITY 2.72% 2.73% -0.53% -0.01%
PREFERENCE SHARE CAPITTAL 0.72% 0.75% -4.64% -0.03%
RESERVES 0.09% 0.15% -37.57% -0.06%
RETAINED EARNINGS 2.34% 2.45% -4.53% -0.11%
TOTAL SHAREHOLDER EQUITY 5.68% 5.78% -1.82% -0.11%
 
 

Table 5

INCOME STATEMENT TREND INDEX

  2010 2009 GROWTH ACHIEVEMENT
INTEREST INCOME 96% 100% -4.11% -4.11%
INTEREST EXPENSE 92% 100% -7.70% -7.70%
NET INTEREST INCOME 102% 100% 1.56% 1.56%
OPERATING INCOME 91% 100% -9.49% -9.49%
OPERATING EXPENSE 107% 100% 7.04% 7.04%
PROSIT BEFORE CREDIT IMPAIREMENT LOSS & INCOME TAX 96% 100% -3.76% -3.76%
PROVISION FOR CREDIT IMAIREMENT 73% 100% -26.84% -26.84%
PROFIT BEFORE INCOME TAX EXPENSE 114% 100% 13.91% 13.91%
INCOME TAX EXPENSE 61% 100% -39.39% -39.39%
PROFIT AFTER INCOME TAX 163% 100% 63.19% 63.19%
PROFIT ATTIBUTABLE TO SHAREHOLDERS OF THE COMPANY 163% 100% 63.19% 63.19%
 

Table 6

BALANCE SHEET TREND INDEX

  2010 2009 GROWTH ACHIEVEMENT
LIQUID ASSETS 101% 100% 0.92% 0.92%
DUE FROM OTHER FIS 113% 100% 13.27% 13.27%
TRADING SECURITIES 116% 100% 16.21% 16.21%
NET LOANS & ADVANCES 103% 100% 2.92% 2.92%
GOODWILL & OTHER INTANGIBLE ASSETS 113% 100% 13.36% 13.36%
PREMISES & EQUIPMENT 104% 100% 3.61% 3.61%
TOTAL ASSETS 105% 100% 4.87% 4.87%
DUE TO OTHER FIS 104% 100% 4.05% 4.05%
DEPOSITS AND OTHER BORROWINGS 105% 100% 5.07% 5.07%
PROVISIONS 93% 100% -7.07% -7.07%
BONDS AND NOTES 103% 100% 2.66% 2.66%
LOAN CAPITAL 99% 100% -0.99% -0.99%
TOTAL LIABILITIES 105% 100% 4.98% 4.98%
ORDINARY SHARE EQUITY 104% 100% 4.31% 4.31%
PREFERENCE SHARE CAPITTAL 100% 100% 0.00% 0.00%
RESERVES 65% 100% -34.53% -34.53%
RETAINED EARNINGS 100% 100% 0.11% 0.11%
TOTAL SHAREHOLDER EQUITY 103% 100% 2.96% 2.96%
 

APPENDIX 2

Table 1

Annual Financial Report, 2010 [online], Available at: < http://media.corporate-ir.net/media_files/irol/96/96910/agm2010/2101%20Annual%20Report.pdf> [Accessed 8 August, 2011]

ANZ INCOME STATEMENT

   
  2010 2009 GROWTH ACHIEVEMENT
INTEREST INCOME 26608 26286 1.22% 322
INTEREST EXPENSE 15739 16398 -4.02% -659
NET INTEREST INCOME 10869 9888 9.92% 981
OPERATING INCOME 15692 13610 15.30% 2082
OPERATING EXPENSE 7304 6225 17.33% 1079
PROSIT BEFORE CREDIT IMPAIREMENT LOSS & INCOME TAX 8388 7385 13.58% 1003
PROVISION FOR CREDIT IMAIREMENT 1787 3005 -40.53% -1218
PROFIT BEFORE INCOME TAX EXPENSE 6601 4380 50.71% 2221
INCOME TAX EXPENSE 2096 1435 46.06% 661
PROFIT AFTER INCOME TAX 4505 2945 52.97% 1560
PROFIT ATTIBUTABLE TO SHAREHOLDERS OF THE COMPANY 4501 2943 52.94% 1558
 
 

ANZ BALANCE SHEET

     
  2010 2009 GROWTH ACHIEVEMENT  
LIQUID ASSETS 21521 25317 -14.99% -3796  
DUE FROM OTHER FIS 5481 4985 9.95% 496  
TRADING SECURITIES 33515 30991 8.14% 2524  
NET LOANS & ADVANCES 349321 332007 5.21% 17314  
GOODWILL & OTHER INTANGIBLE ASSETS 6630 3896 70.17% 2734  
PREMISES & EQUIPMENT 2158 2062 4.66% 96  
TOTAL ASSETS 531739 476987 11.48% 54752  
DUE TO OTHER FIS 20521 19924 3.00% 597  
DEPOSITS AND OTHER BORROWINGS 311472 294370 5.81% 17102  
PROVISIONS 1462 1312 11.43% 150  
BONDS AND NOTES 59714 57260 4.29% 2454  
LOAN CAPITAL 12316 13429 -8.29% -1113  
TOTAL LIABILITIES 497584 444558 11.93% 53026  
ORDINARY SHARE EQUITY 19886 19151 3.84% 735  
PREFERENCE SHARE CAPITTAL 871 871 0.00% 0  
RESERVES -2587 -1787 44.77% -800  
RETAINED EARNINGS 15921 14129 12.68% 1792  
TOTAL SHAREHOLDER EQUITY 34155 32429 5.32% 1726  
                   
 

Table 2

KEY FINANCIAL RATIOS

  2010 2009 GROWTH ACHIEVEMENT
RETURN ON EQUITY CAPITAL           0.132         0.091 45%                      0.04
RETURN ON ASSETS           0.008         0.006 37%                      0.00
NET INTEREST MARGIN           0.020         0.021 -1%                    (0.00)
NET NON INTEREST MARGIN           0.016         0.015 2%                      0.00
NET BANK OPERATING MARGIN           0.036         0.036 0%                      0.00
EARNING SPREAD           0.026         0.023 9%                      0.00
NET PROFIT MARGIN           0.107         0.074 44%                      0.03
ASSET UTILIZATION           0.080         0.084 -5%                    (0.00)
EQUITY MULTIPLIER        15.568      14.709 6%                      0.86
TAX MANAGEMENT EFFICIENCY           0.682         0.672 2%                      0.01
EXPENSE CONTROL EFFIEICNCY           0.156         0.110 42%                      0.05
ASSET MANAGEMENT EFFICIENCY           0.080         0.084 -5%                    (0.00)
FUNDS MANAGEMENT EFFICIENCY        15.568      14.709 6%                      0.86
OPERATING EFFICIENCY           0.545         0.567 -4%                    (0.02)
 

Table 3

COMMON SIZE INCOME STATEMENT

  2010 2009 GROWTH ACHIEVEMENT
INTEREST INCOME 62.90% 65.89% -4.53% -2.98%
INTEREST EXPENSE 37.21% 41.10% -9.47% -3.89%
NET INTEREST INCOME 25.70% 24.78% 3.67% 0.91%
OPERATING INCOME 37.10% 34.11% 8.74% 2.98%
OPERATING EXPENSE 17.27% 15.60% 10.67% 1.66%
PROSIT BEFORE CREDIT IMPAIREMENT LOSS & INCOME TAX 19.83% 18.51% 7.13% 1.32%
PROVISION FOR CREDIT IMAIREMENT 4.22% 7.53% -43.91% -3.31%
PROFIT BEFORE INCOME TAX EXPENSE 15.61% 10.98% 42.14% 4.63%
INCOME TAX EXPENSE 4.96% 3.60% 37.76% 1.36%
PROFIT AFTER INCOME TAX 10.65% 7.38% 44.28% 3.27%
PROFIT ATTIBUTABLE TO SHAREHOLDERS OF THE COMPANY 10.64% 7.38% 44.25% 3.26%
 

Table 4

COMMON SIZE BALANCE SHEET

  2010 2009 GROWTH ACHIEVEMENT
LIQUID ASSETS 4.05% 5.31% -23.75% -1.26%
DUE FROM OTHER FIS 1.03% 1.05% -1.37% -0.01%
TRADING SECURITIES 6.30% 6.50% -2.99% -0.19%
NET LOANS & ADVANCES 65.69% 69.61% -5.62% -3.91%
GOODWILL & OTHER INTANGIBLE ASSETS 1.25% 0.82% 52.65% 0.43%
PREMISES & EQUIPMENT 0.41% 0.43% -6.12% -0.03%
TOTAL ASSETS 100.00% 100.00% 0.00% 0.00%
DUE TO OTHER FIS 3.86% 4.18% -7.61% -0.32%
DEPOSITS AND OTHER BORROWINGS 58.58% 61.71% -5.09% -3.14%
PROVISIONS 0.27% 0.28% -0.04% 0.00%
BONDS AND NOTES 11.23% 12.00% -6.45% -0.77%
LOAN CAPITAL 2.32% 2.82% -17.73% -0.50%
TOTAL LIABILITIES 93.58% 93.20% 0.40% 0.38%
ORDINARY SHARE EQUITY 3.74% 4.01% -6.85% -0.28%
PREFERENCE SHARE CAPITTAL 0.16% 0.18% -10.30% -0.02%
RESERVES -0.49% -0.37% 29.86% -0.11%
RETAINED EARNINGS 2.99% 2.96% 1.08% 0.03%
TOTAL SHAREHOLDER EQUITY 6.42% 6.80% -5.52% -0.38%
 
 

Table 5

INCOME STATEMENT TREND INDEX

  2010 2009 GROWTH ACHIEVEMENT
INTEREST INCOME 101% 100% 1.22% 1.22%
INTEREST EXPENSE 96% 100% -4.02% -4.02%
NET INTEREST INCOME 110% 100% 9.92% 9.92%
OPERATING INCOME 115% 100% 15.30% 15.30%
OPERATING EXPENSE 117% 100% 17.33% 17.33%
PROSIT BEFORE CREDIT IMPAIREMENT LOSS & INCOME TAX 114% 100% 13.58% 13.58%
PROVISION FOR CREDIT IMAIREMENT 59% 100% -40.53% -40.53%
PROFIT BEFORE INCOME TAX EXPENSE 151% 100% 50.71% 50.71%
INCOME TAX EXPENSE 146% 100% 46.06% 46.06%
PROFIT AFTER INCOME TAX 153% 100% 52.97% 52.97%
PROFIT ATTIBUTABLE TO SHAREHOLDERS OF THE COMPANY 153% 100% 52.94% 52.94%
 

Table 6

BALANCE SHEET TREND INDEX

  2010 2009 GROWTH ACHIEVEMENT
LIQUID ASSETS 85% 100% -14.99% -14.99%
DUE FROM OTHER FIS 110% 100% 9.95% 9.95%
TRADING SECURITIES 108% 100% 8.14% 8.14%
NET LOANS & ADVANCES 105% 100% 5.21% 5.21%
GOODWILL & OTHER INTANGIBLE ASSETS 170% 100% 70.17% 70.17%
PREMISES & EQUIPMENT 105% 100% 4.66% 4.66%
TOTAL ASSETS 111% 100% 11.48% 11.48%
DUE TO OTHER FIS 103% 100% 3.00% 3.00%
DEPOSITS AND OTHER BORROWINGS 106% 100% 5.81% 5.81%
PROVISIONS 111% 100% 11.43% 11.43%
BONDS AND NOTES 104% 100% 4.29% 4.29%
LOAN CAPITAL 92% 100% -8.29% -8.29%
TOTAL LIABILITIES 112% 100% 11.93% 11.93%
ORDINARY SHARE EQUITY 104% 100% 3.84% 3.84%
PREFERENCE SHARE CAPITTAL 100% 100% 0.00% 0.00%
RESERVES 145% 100% 44.77% 44.77%
RETAINED EARNINGS 113% 100% 12.68% 12.68%
TOTAL SHAREHOLDER EQUITY 105% 100% 5.32% 5.32%

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