Profitability of A Bank. Introduction In the highly competitive financial market, it is imperative that banks analyze each line of business in order to.

Slides:

Advertisements

Similar presentations

AC 113- Unit 3 Chapter 2.

Advertisements

Financial Statements & Institutions. Bank Financial Statements Gup and Kolari: Chp. 3 Statements End Yr. 3 Qtr. 3.

Financial Statements & Institutions. Bank Financial Statements Gup and Kolari: Chp. 3 Statements End Yr. 1 Qtr. 4.

Short-Term Investments & Receivables Pr. Zoubida SAMLAL.

Introduction to Accounting Name:. The Basic Accounting Equation Write the equation here. Use Video 1.

Basic Financial Concepts

Financial Aspects of a Business Plan

©2008 Pearson Prentice Hall. All rights reserved. 5-1 Short-Term Investments & Receivables Chapter 5.

Tax Accounting.

M. Morshed1 Chapter:05 Financial Statement of Bank.

AAT Level 3 Recap on Debits and Credits and Introduction to Income Statement and Statement of Financial Position.

Chapter 9: Accounting Day 1: Introduction to Accounting

1 Accounting 100 Chapter 2 Analyzing Business Transactions.

Accounting Unit. MSBCS-BCSIII-5: The students will examine basics of accounting. a) Define credits and debits. b) Identify account types (assets, liabilities,

An Introduction to Basic Finance

Introduction to Accounting Written by Ruby Ann Sawyer, Brantley County Middle School.

WRITTEN BY RUBY ANN SAWYER, BRANTLEY COUNTY MIDDLE SCHOOL Introduction to Accounting.

McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. 2-1 Chapter Two: Basic Financial Statements.

Alomar_111_MCP1 Money Creation Process. Alomar_111_MCP2 A person opens a checking account at bank (A) with (KD100) in cash. This rises the liability of.

Chapter 1 Review. An amount owed by a business. liability.

Balance Sheet Audited Active 114, ,666 Current Assets 103, ,673 Fix Assets 218, ,339 Total Passive 93,705 77,844.

Classified Financial Statements Unit 10. The Balance Sheet Balance Sheet—two forms: Balance Sheet—two forms: –Account form two sides two sides assets.

McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved Chapter Five The Financial Statements of Banks and Their Principal Competitors.

ACCOUNTING & FINANCE Balance Sheet. Introduction and Key Definitions It shows the financial position of a firm at a particular moment in time. what “

Asset Structure Assets Cash on Hand and in Current Accounts 86 Deposits Maturing within one Month441 Balances with the Central Bank57 Government Debt Instruments412.9.

FINANCIAL STATEMENTS Part 13. Lesson Objectives To be able to identify financial Statements. To be able to describe the purpose of financial statements.

Introduction to Accounting 8 th grade Mrs. Stovall.

The Accounting Equation During 2007, Total Liabilities for XYZ Inc. increased $60,000 and Total Assets increased by $50,000. What changes must have occurred.

Preparing Financial Documents The Income Statement & Balance Sheet.

BASIC FINANCIAL STATEMENTS

1 Chapter 1 Accounting as a Form of Communication Financial Accounting 4e by Porter and Norton.

1. »Are vital because a business cannot exist without cash flow »Focus on the following: –creating up-to-date, accurate financial statements –making a.

Introduction to Accounting. What is accounting? The system of recording and summarizing ______________ ___________and analyzing, verifying, and reporting.

Personal Financial Statements Chapter 12 Personal Financial Statements The Balance Sheet.

© 2012 Cengage Learning. All Rights Reserved. Principles of Business, 8e C H A P T E R 12 SLIDE Financial Records and Financial Statements 12.

Accounting Principles Quiz. The Accounting Equation is A. Assets = Capital +Liabilities B. Assets = Capital -Liabilities C. Assets + Capital =Liabilities.

Money and Banking Lecture 24. Review of The Previous Lecture Banking Types of Banking Institutions Commercial Banks Savings Institutions Credit Unions.

Introduction The need for financial planning Balance sheet and income statement overview Internal and external documents Calculating costs Debt servicing.

Financial Statements. Balance Sheet Income Statement Ratios Outline.

Accounting The Balance Sheet The Income Statement Break-Even Analysis Transportation.

Measuring Line of Business Success

Extending Financial Statement Information on a Work Sheet

BANK REGULATION CHAPTER 18 All Rights Reserved Dr David P Echevarria.

BASIC FINANCIAL STATEMENTS

Chapter 6 Work Sheet for a Service Business

CHAPTER FOUR The Financial Statements of Banks and Some of Their Closest Competitors

Accounting Equation Mr. Chan starts a business The owner.

Introduction to Accounting Story Time!

Introduction to Accounting

Introduction to Accounting

Accounting BBI2O.

إعداد القوائم المالية Preparation of Financial Statements

INTEREST RATE SWAP Southwest Savings Association

CHAPTER FOUR The Financial Statements of Banks and Some of Their Closest Competitors

Basic Financial Concepts

Introduction to Financial Statements

Accounting as a Form of Communication

Extending Financial Statement Information on a Work Sheet

Chapter 1, 2, 3 Review.

Financial Records and Financial Statements

Accounting for financial institution

LESSON 6-3 Extending Financial Statement Information on a Work Sheet

Understanding Principles of Accounting

Chapter One 12 Words.

Extending Financial Statement Information on a Work Sheet

Extending Financial Statement Information on a Work Sheet

Accounting 1 Review #2 State Test.

Unit 10– Finance Vocabulary

Extending Financial Statement Information on a Work Sheet

QuickBooks Accounting 101.

Presentation transcript:

Profitability of A Bank

Introduction In the highly competitive financial market, it is imperative that banks analyze each line of business in order to maximize profits. In this presentation, a brief overview of three areas of concentration will be given.

LEVERAGE AND RISK BALANCE SHEET For customers, the bank sends out a monthly statement showing all activity on each customer’s accounts. A financial institution also has a monthly statement, the balance sheet, that is reviewed by all parties involved.

BALANCE SHEET EXAMPLES

CREDIT RISK Simply defined as the potential that a borrower will fail to meet its obligations. To absorb losses like this, a bank will keep an “allowance” for loan and lease losses. These losses are written off and are replenished through the “provisions” set aside.

Credit Risk Balance Sheet Example

INTEREST RATE RISK Interest earned from loans greater than interest paid on deposits The total of this equation is a major factor of profitability.

Market The economic market will change. With each change, the financial institutions must adjust in order to remain profitable. Keeping up-to-date records of assets and liabilities is a day to day process.