Bank Analysis School - Case Study & Resources

CAPITAL - OTHER RATIOS

Sunny State Bank

Dividends to Net Income

Retained Earnings to Average Total Equity

140.7%

6.0%

140.0%

120.0%

3.6%

4.0%

3.1%

3.1%

100.0%

1.7%

2.0%

80.0%

0.5%

60.0%

0.0%

46.4% 60.3%

44.6%

(0.7%)

38.9%

40.0%

(2.0%)

20.0%

0.0%

(4.0%)

0.0%

(4.8%)

(20.3%)

(20.0%)

(6.0%)

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2Q4

20 X3Q4

20 X4 Q4 20 X5 Q4

20 X9Q4

20 X0 Q4 20 X1 Q4 20 X2 Q4 20 X3 Q4 20 X4Q4

20 X5 Q4

Equity Capital Growth Rate

Equity Growth Less Asset Growth

20.0%

16.0%

20.0%

15.0%

15.0%

12.0%

10.0%

8.0%

5.0%

4.0%

0.2%

1.2%

0.8%

0.0%

0.2%

(4.7%)

0.0%

(2.4%)

(5.0%)

(7.3%)

(4.3%)

(4.0%)

(10.0%)

(10.2%)

(6.2%)

(8.0%)

(15.0%)

(12.0%)

(20.0%)

(21.9%)

(14.9%)

(16.0%)

(25.0%)

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2Q4

20 X3 Q4 20 X4 Q4 20 X5 Q4

20 X9 Q4 20 X0 Q4 20 X1 Q4 20 X2 Q4 20 X3 Q4 20 X4 Q4 20 X5Q4

The ratios on this page relate to dividends, retained earnings, capital growth, and asset growth. Keep in mind that a high level of dividends could impact the ability to grow capital (net income - dividends = retained earnings). Also be mindful that asset growth will impact capital ratios since the denominator for capital ratios is assets (either average total assets or risk weighted assets). If Equity Growth Less Asset Growth is positive, capital ratios will likely improve and vice versa. ■ Bank ■ State ■ All Banks