Financial Ratio Analysis

BOQ is one of the oldest retail banks in Australia. It is one of the top 100 ASX listed companies with a market capitalisation of $4.45b . It largely operates with a network of 252 branches including corporate and owner managed branches. It operates predominantly in Queensland and has access to over 3000 ATMs. Its recent acquisition with Investec Bank in July 2014 has contributed a net profit of $19m to the bank. Its current focus is on improving customer satisfaction and expanding its broker channels. The bank is currently looking into progressing its technology of online banking and expand its consumer

Return on equity (ROE), or measure of profitability a company can acquire using shareholder investments is an important tool (Gitman, 2015). Aetna Inc. ROE of 17.01% is comparable to market leader Humana at 10.86% (AET: AETNA INC-NEW Stock Quote & Analysis - Zacks.com, n.d.). Return on Assets (ROA) or a measure of how profitable a company is relative to total assets is a ration that must be compared within industries (Gitman, 2015). Aetna Inc. ROA at 4.7, slightly below Humana’s at 5.25, but us average for the industry (AET: AETNA INC-NEW Stock Quote & Analysis - Zacks.com,

Westpac operating expenses increased $18 million in comparison with 2012, factors of this result were higher investment cost, salaries and staff expenses (annual salary increased and additional staff), equipment and occupancy cost (software amortisation, impairments, hardware depreciation and rental related costs) and reduction in other expenses (legal procedure provision not repeated in 2013) (Westpac Annual Report 2013, p.86). Impairments charges decreased 30% compared to 2012 as a result of continuous improvement in the quality assets. (Westpac Annual Report 2013, p.83)

The higher the return, the more profitable the bank is, in the sense that it utilizes assets to make profits more efficiently. Return on assets can be calculated by dividing net profit after taxes by total assets. Return on equity, on the other hand, measures profitability by looking at how a bank generates profit with the equities invested by the shareholders. It can be derived by taking the ratio of net profit after taxes and equity capital. The relationship between ROA and ROE is that ROE is equal to ROA times the equity multiplier (EM). The equity multiplier is the value of assets divided by equity capital, and it expresses how much assets there are for every dollar of equity capital. If ROA and the amount of assets are held constant, the lower equity capital is, the higher the return for the owners of the bank. For example, if a bank doubles the amount of its capital and ROA stays constant, ROE will fall to half of its original value. This relationship gives bank managers the incentive to hold less bank capital relative to assets, and to have a larger equity multiplier. When the bank is not making a considerable profit, ROE can still increase if equity capital is reduced. This is not the desired outcome of the regulators, because in most cases, the regulatory authorities ask banks to satisfy certain capital requirements. When banks have the incentive to cut off capital, they have a smaller bank capital to assets ratio than is required by the regulators. This

The ROE in 2014 has reached 15.8% which provides a solid improvement from 14% achieved in 2013. It has also been positively affected by ABC refinancing its debt facilities during 2014 which resulted in lower borrowing margins and increased term, as well as significant operational improvements achieved in line with company strategy focused on reducing costs and maximising margins. Adelaide Brighton’s ROA recorded only minor 0.2% improvement compared to 2013 with rate reaching 14.2%. The EBIT before significant items gains

Operational risk and reputational risk may adversely affect to ANZ’s business operation and their financial condition

I observed the return on assets ratio (RAR) because it provides me an indication of the profitability of assets in profits on each dollar invested in assets. $0.18 cents is earned on each dollar of assets invested. This is a good indicator that Blackmores is effectively using their assets, which is a good indication of expansion. I am looking to see whether Blackmores share prices are going to go up, so I used the price/earnings ratio (PER). The PER measures the amount I would have to pay in the market for each dollar of expected earnings. I would expect to earn 27.87 times what I pay per share, which is very high and a good indicator that the company share prices will increase in the

The Financial System Inquiry (FSI) acts as a model for achieving a resilient and efficient financial system, contributing to Australia’s economic growth. The Capital requirements implemented according to the FSI has potential impacts on Australian banking system:

Efficiency and Profitability of Canadian banks were previously studied at the branch and the institutional levels. Since in general it is extremely difficult to access branches banking data, thus, the institutional level will be inspected once again, mainly for its easiness. Assessing the performance of Canadian banks will be throughout years 2008 and 2013 on the largest banks ranked in terms of assets by applying the non-parametric mathematical programming approach; the DEA approach and two of the most popular standard financial ratios; the return on assets (ROA) and the return on equity (ROE). Output-oriented approach will be adopted as many researchers obtained efficiency estimates under input-oriented approach. This is probably due to the conjecture that managers have more power on inputs than outputs. For the selection of inputs and outputs the intermediation approach will be followed as it is favored among other approaches for assessing the bank as whole. Relevant data will be extracted from the world banking information database named "Bankscope". Bankscope is easily accessible to obtain the needed data directly from the financial statements of banks.

Currently, there are 80 financial institutions who have adopted the equator principle. Among these financial institutions is the third largest bank by market capitalisation in Australia

This ratio means how much the company earns before they paid their interest and taxes, this ratio helped to know how the bank can be more efficient in used their assets to generate profit before paying the obligation. The formula for this ratio is ROA=EBIT/Total assets. The figure below was calculated by NBAD, so as you can ROA was 1.51 in 2013 and continued increased in 2014 till it reached 1.59 in 2014, but the figure dramatically decreased till 1.34 in 2015. NBAD was stronger in 2014 as they generate high ROA compare it with the two years that help the bank to be more profitability and attract a lot of

Scholars are often used to measure the performance of indicators including ROE and s ' Q Tobin, ROE is the net assets yield; Tobin 's Q (= the market value of the company / asset replacement cost) is used by foreign scholars of the index, the index is reverse (Chen Goh, 2005). Referring to the market value of a company, because of the special nature of the securities market and the ownership structure of the commercial banks, the domestic scholars generally not used. And just use these two single indicators not fully reflect the business objectives of the commercial banks’ needs, nor it is suitable for the measurement of the operational performance of China 's commercial banks. This paper uses commercial banks ' net assets yield (X1), earnings per share (X2), liquidity ratio (X3), loan to deposit ratio (x4), non-performing loan ratio (x5), the capital adequacy ratio (x6), the main business income growth rate (X7), net profit growth rate (x8), total assets growth rate (x9), nine specific indicators to measure explained variables, which as the comprehensive performance of the commercial banks. Because the four aspects of the nine indicators were reflected in the executive level of financial banks "profitability", "liquidity", "debt paying ability" and "growth" and on the performance of commercial

The dependent variable for the first model is the bank profitability and this is proxy with return on average assets as the main measure of profitability. The ROAA is the ratio of net incomes to average total assets stated in percentage. The ROAA reveals the bank’s management ability to generate incomes from the bank’s assets. It also gives indication on how effective the assets of the bank are utilized in generating revenues as well as the operational performance of banks (Jahan, 2012). In the literature, ROAA has been accounted to be the main measure of profitability. Golin and Delhaise (2013) pointed out, the ROAA is a very key ratio in

According to Bloomberg, the lenders in Indonesia have the most profits among the top 20 economies in the world (Vallikappen and Moestafa, 2013). The data shows that Indonesian banks have higher profitability than other Southeast Asian (ASEAN) countries due to high demand for credit. It can be seen that banks in Indonesia tend to have high net interest margin (NIM), which demonstrates the ability of traditional bank activities to generate interest-based income. From 2000 to 2009, average banks in Indonesia had the highest NIM of 5.29% compare to other ASEAN countries, including the Philippines at

IN RECENT YEARS, MALAYSIAN ISLAMIC BANKS HAVE TO OPERATE IN AN INCREASINGLY COMPETITIVE ENVIRONMENT. THIS TREND IS EXPECTED TO CONTINUE AS THE COMPETITION FROM CONVENTIONAL BANKS PICKS UP, PARTLY IN RESPONSE TO THE ASEAN FREE TRADE AGREEMENT (AFTA), BUT ALSO IN RESPONSE TO THE GENERAL GLOBALIZATION OF MARKETS. HOW ISLAMIC BANKS WILL BE AFFECTED BY THE INCREASED COMPETITIVE PRESSURES DEPENDS IN PART ON HOW EFFICIENTLY THEY ARE RUN. THIS PAPER EXAMINES THE PRODUCTIVE EFFICIENCY OF MALAYSIAN COMMERCIAL (ISLAMIC AND CONVENTIONAL) BANKS OVER THE 1993 TO 2000 TIME PERIOD. THE GOAL OF THE ANALYSIS IS TO IDENTIFY THE