Bank Analysis School eBook

Internal Use Only

Reconciling Performance Changes

% AVERAGE ASSETS Net Interest Income + Noninterest Income - Noninterest Expenses

12/31/23

12/31/22

EFFECT -2 bps -10 bps -48 bps +8 bps

2.41% 0.62% 1.66% 0.03% 1.35%

2.43% 0.72% 1.18% 0.11% 1.86%

- Provisions

Pretax Net Operating Income

Net effect -52 bps

What is the main reason pretax earnings declined in 2023?

Internal Use Only

Reconciling Performance to Peer

% AVERAGE ASSETS Net Interest Income + Noninterest Income - Noninterest Expenses

BANK 2.41% 0.62% 1.66% 0.03% 1.35%

PEER

EFFECT -73 bps -21 bps +78 bps +2 bps

3.14% 0.83% 2.44% 0.05% 1.59%

- Provisions

Pretax Net Operating Income

Net effect -16 bps

What is the main reason pretax earnings is worse than peer? Is there an area the bank is performing better than peer?