Bank Analysis School April 2025

Internal Use Only

How would you rate Earnings? Bank A

• Total assets $500 million and ROAA of 1.00% Bank B • Consistently profitable with no changes to product lines for many years. • Modest growth rate. • Capital ratios have been steadily increasing.

• Total assets $500 million and ROAA of 1.00% • Recently launched new high yielding but high-risk lending program which is rapidly growing. • Capital ratios have been falling due to the rapid growth. • Allowance has been dwindling due to loan losses.

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Internal Use Only

Please share a take-away from this session.

(Chatstorm)

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