Activity 3 Requirements PDF

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In Class Activity 3 Requirements For your third in class activity report you will need to review your financial institution’s Bank Holding Company Performance Report (BHCPR) and respond to the questions listed below. To access the BHCPR use the following steps: 1) Click on this link: https://www.ffiec.gov/npw/Institution/TopHoldings 2) Click on the name of your financial institution 3) Click on Bank Holding Company Performance Report (BHCPR). Then select the 12/31/20 report. Here is what you need to do for this activity: 1) Based on the reported balance sheet and income statement, calculate your institution’s ROE and ROA for the periods ending 12/31/20, 12/31/19 and 12/31/18. Are these ratios becoming better or worse? Net income ROE = Total equity capital

ROA =

Net income Total Assets

2) Based on the reported balance sheet and income statement, calculate your institution’s net profit margin, asset utilization ratio and equity multiplier for the periods ending 12/31/20, 12/31/19 and 12/31/18. Are these ratios better or worse for the most recent period as compared to the previous two time periods?

where

For total operating revenue use the sum of total interest income and total non-interest income. Which of these ratios is primarily responsible for the changes in the ROE and ROA? 3) Calculate the net interest margin and noninterest margin and the special transactions affecting the net income for your institution. Are they better or worse in the most recent period as compared to the previous two time periods? Which one of these factors is primarily responsible for the change in the ROA?...