商业银行经营管理评价.ppt

Noninterest expense to earning assets LNLS loss provision to assets US Banks: ROA (2002) US Banks: ROE (2002) US Chinese Banks: ROA (2002) US Chinese Banks: ROE (2002) Return on equity (ROE = NI / TE)… the basic measure of stockholders’ returns ROE is composed of two parts: Return on Assets (ROA = NI / TA) represents the returns to the assets the bank has invested in. Equity Multiplier (EM = TA / TE) the degree of financial leverage employed by the bank. Return on assets (ROA = NI / TA)…can be decomposed into two parts: ? Asset utilization (AU) → income generation ? Expense ratio (ER) → expense control ROA = AU － ER = (TR / TA) － (TE / TA) TR = total revenue or total operating income = Int. inc. + non-int. inc. + SG(L) TE = total expenses= Int. exp. + non-int. exp. + PLL + Taxes Asset utilization (AU = TR / TA):… the ability to generate income. Interest Income / TA Asset yields (rate) Interest income asset (i) / $ amount of asset (i) Composition of assets (mix) $ amount asset (i) / TA Volume of Earning Assets Earning assets / TA Non interest income / TA Fees and Service Charges Securities Gains (Losses) Other income Expense ratio (ER = Exp / TA)… the ability to control expenses. Interest expense / TA Cost per liability (rate) Int. exp. liab. (j) / $ amt. liab. (j) Composition of liabilities $ amt. of liab. (j) / TA Volume of debt and equity Non-interest expenses / TA Salaries and employee benefits / TA Occupancy expenses / TA Other operating expense / TA Provisions for loan losses / TA Taxes / TA Other aggregate profitability measures Net interest margin NIM = NII / earning assets (EA) Spread Spread = (int inc / EA) - (int exp / int bear. Liab.) Earnings base EB = EA / TA Burden / TA (Noninterest exp. - Noninterest income) / TA Efficiency ratio Non int. Exp. / (Net int. Inc. + Non int. Inc.) Financial ratios…PNC, 2000 ROE: Net Income/Average Total equity 18.9% ROA: Net Income / Avg TA 1.5% AU: Total Revenue / Avg