Financial Ratio Analysis

 Profitability
2015 2016 2017
Return on equity capital (ROE) (%)
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 10.25 11.59 11.98
= 𝑇𝑜𝑡𝑎𝑙 𝑒𝑞𝑢𝑖𝑡𝑦 𝑐𝑎𝑝𝑖𝑡𝑎𝑙
Return on assets (ROA)
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 0.79 0.78 0.73
= 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
Net interest margin (NIM) 2.78 2.71 2.77
Cost of funding (COF) 4.06 4.38 4.56
Net operating margin
(𝑇𝑜𝑡𝑎𝑙 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑟𝑒𝑣𝑒𝑛𝑢𝑒𝑠−𝑇𝑜𝑡𝑎𝑙 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠) 94.26 97.48 92.4
= 𝑇𝑜𝑡𝑎𝑙 𝑎𝑠𝑠𝑒𝑡𝑠
Yield on earning assets (YOEA) 6.26 6.43 0

Each of the foregoing ratios looks at a slightly different aspect of profitability. Thus,
return on assets (ROA) is primarily an indicator of managerial efficiency; it indicates how
capable management has been in converting assets into net earnings. Return on equity
(ROE), on the other hand, is a measure of the rate of return flowing to shareholders. It
approximates the net benefit that the stockholders have received from investing their
capital in the financial firm
The net operating margin, net interest margin and net noninterest margin indicates how
well management and staff have been able to keep the growth of revenues ahead of rising
costs.
The net interest margin measures how large a spread between interest revenues and
interest costs management has been to achieve by close control over earning assets and
pursuit of the cheapest sources of funding
The net noninterest margin measures the amount of noninterest revenues stemming from
services fees the financial firm has been able to collect relative to the amount of
noninterest costs incurred

 Valuation

2015 2016 2017

Earning per share (EPS)
𝑁𝑒𝑡 𝑖𝑛𝑐𝑜𝑚𝑒 6,133 6,402 7,431
= 𝐶𝑜𝑚𝑚𝑜𝑛 𝑒𝑞𝑢𝑖𝑡𝑦 𝑠ℎ𝑎𝑟𝑒𝑠 𝑜𝑢𝑡𝑠𝑡𝑎𝑛𝑑𝑖𝑛𝑔
Book value of shares (BVPS) 15,070 16,197 17,126
The market price index (P / E) 12.15 8.31 12.12
Market price index on book value (P / B) 1.23 0.93 1.41

 Liquidity
 2015 2016 2017
Outstanding loans to customers / Total deposits
85.93 86.1 87.29
(LDR)
Outstanding loan / Total assets 69.03 69.79 72.2
Equity / Total mobilized capital 0.09 0.08 0.07
Equity / Total assets 7.2 6.36 5.82
 Growth rates
2015 2016 2017
Profit before tax 0.57 15.09 8.9
Profit after tax -0.26 18.38 10.19
Total assets 17.88 21.69 15.44
Owner's equity 1.96 7.48 5.73
Deposits from customers 22.33 23.03 19.44
Net interest income 5.47 18.39 21.38
Provisions for loan losses 19.28 8.11 64.94
Net fee and commission income 23.84 16.31 9.26
Operating profit before provision for credit
7.11 12.37 29.88
losses
Operating expenses 9.33 19.86 17.29

 Asset quality
2015 2016 2017
Loan loss provision ratio -0.8 -1.02 -1.11
Earning assets / Total assets 94.66 95.65 95.87