Ast Quality
Before analyzing provisions and ast quality ratios it is important to realize that from country to country and indeed within the same country policies vary as to how aggressively or otherwi banks provide for loan loss, when they charge off a loan and whey define loans as non performing. The differences can distort ratios.
∙4001 LOAN LOSS RES / GROSS LOANS
(= 2070 / (2000 + 2070) * 100)
This ratio indicated how much of the total portfolio has been provided for but not charged off. It is a rerve for loss expresd as percentage of total loans. Given a similar charge-off policy the higher the ratio the poorer the quality of the loan portfolio will be.
治病救人∙4002 LOAN LOSS PROV / NET INT REV
(=2095 / 2080 * 100)
This is the relationship between provisions in the profit and loss account and the interest inc四级单词
ome over the same period. Ideally this ratio should be as low as possible and in a well run bank if the lending book is higher risk this should be reflected by higher interest margins. If the ratio deteriorates this means that risk is not being properly remunerated by margins.
英文原声电影∙4003 LOAN LOSS RES / NON PERF LOANS
(=2070 / 2170 * 100)
This ratio relates loan loss rerves to non performing or impaired loans. The higher this ratio is the better provided the bank is and the more comfortable we will feel about the asts quality.
∙4004 NON PERF LOANS / GROSS LOANS计算机语言翻译
(=2170 / (2000 + 2070) * 100)
英语专业八级成绩查询This is a measure of the amount of total loans which are doubtful. The lower this figure is the better the asts quality.
∙4005 NCO / AVERAGE GROSS LOANS
(=2150 / (2000 + 2070 ) AVG * 100)
Net charge off or the amount written-off from loan loss rerves less recoveries is measured at a percentage of the gross loans. It indicates what percentage of todays loans have been finally been written off the books. The lower this figure the better as long as the write off policy is consistent across comparable banks.
∙4006 NCO/NET INCOME BEFORE LOAN LOSS PROVISION
(=2150 / ( 2115 + 2095 ) * 100)
This ratio similarly measures charge offs but against income generated in the year. The lower this figure the better, other things being equal.
∙4037 IMPAIRED LOANS/EQUITY
(=2170 / 2055 *100)
Impaired or problem loans as a percentage of the bank's equity. This indicates the weakness of the loan portfolio relative to the bank's capital. If this is a high percentage this would be cau for concern.
∙4038 UNRESERVED IMPAIRED LOANS/EQUITY
(=( 2170-2070 ) / 2055 * 100)
Impaired or problem loans not covered by rerves, as a percentage of capital. Also known as the capital impairment ratio. It shows what percentage of the bank's capital would be written off if the rerves or accumulated provisions were 100% of impaired loans and how vulnerable a bank's capital ratio would be as a result.
If Net Interest Revenue (2080) is negative, ratio 4002 is meaningless and is noted "ns". The same is true for ratio 4006 if Net Income before Loan Loss Provision is negative.
Capital
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∙4007 TIER 1 RATIO
(=2130)
This measure of capital adequacy measures Tier 1 capital; that is shareholder funds plus perpetual non cumulative preference shares as a percentage of risk weighter asts and
off balance sheet risks measured under the Basle rules. This figure should be at least 4%.
∙4008 CAPITAL ADEQUACY RATIO
(=2125)
This ratio is the total capital adequacy ratio under the Basle rules. It measures Tier 1 + Tier 2 capital which includes subordinated debt, hybrid capital, loan loss rerves and the valuation rerves as a percentage of risk weighted asts and off balance sheet risks. This ratio should be at least 8%. This ratio cannot be calculated simply by looking at the balance sheet of a bank but has to be calculated internally by the bank. At their option they may publish this number in their annual report.
Notes:both figures for Ratios 4007 and 4008 are supplied by the concerned institutions.
∙4009 EQUITY / TOT ASSETS
(=2055 / 2060 * 100)
As Equity is a cushion against ast malfunction, this ratio measures the amount of protection afforded to the bank by the Equity they invested in it. The higher this figure the more protection there is.
∙4010 EQUITY / NET LOANSrider什么意思
(=2055 / 2000 * 100)
Similarly this ratio measures the Equity cushion available to absorb loss on the loan book.
cinemax∙4011 EQUITY / CUST & ST FUNDING
(=2055 / 2030 * 100)
This ratio measures the amount of permanent funding relative to short term potentially volatile funding. The higher this figure the better.
∙4012 EQUITY / LIABILITIES
(=2055 / (2060 - 2055 - 2160 - 2165) * 100)
This leverage ratio is simply another way of looking at the Equity funding of the balance s
激励相容heet and is another of looking at capital adequacy.
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