Name: Daniella Mariz G.

Lamptey Section: MBA-B2023

Subject: MBA 207- Advance Financial Management Professor: Billy I. Baccarra, CPA, PhD

I. Executive Summary
Robinsons Bank Corporation and Subsidiary Financial Statements

The executive summary below provides a short summary of the financial results of
Robinsons Bank Corporation and its subsidiaries for the period December 31, 2021 and
December 31, 2020 and for the Years Ended December 31, 2021, 2020 and 2019.

Financial Highlights:
The substantial growth in revenue that Robinsons Bank Company accrued was mainly due
to the rise in interest income from lending operations and fees earned from various banking
services.
Within the group, net earnings improved significantly on a yearly basis highlighting
efficient practices in managing costs and generating revenue.
Prudent credit risk management practices helped maintain asset quality although non-
performing loan ratios may have experienced minor ups and downs.
A strong capital base for Robinsons Bank Corporation implied resilience against possible
risks as well as adequate room to support future expansion programs.

Key Financial Metrics:

The company’s net income rose markedly indicating a high level of effectiveness of
business strategies and efficiency in operations.

Robinsons Bank Corporation and its affiliates are well situated to continue their growth
momentum and offer value to their shareholders, despite the obstacles that arise from the
macroeconomic environment and competitive landscape. The bank has always emphasized
risk management, creativity, and customer-centered strategies to exploit new opportunities
as well as overcome possible hurdles.

This executive summary offers a glimpse of the financial results and strategic path taken
by Robinsons Bank Corporation in partnership with its subsidiaries; hence this gives the
stakeholders an understanding of the group’s activities and prospects. For more details, please
refer to the complete financial statements together with notes thereto.
II. Collective Inference on all Ratios.
a. Liquidity Ratio
Current Assets
Current Ratio =
Current Liabilities

Consolidate
P179,769,809,903
Current Ratio =
P161,332,690,765

Current Ratio = 1.11

Parent Company
P177,468,582,339
Current Ratio =
P159,031,463,201

Current Ratio = 1.12

b. Profitability Ratio
Net Interest Income
Net Interest Margin =
Total Assets

Consolidated
P6,820,764,468
Net Interest Margin =
P179,769,809,903

Net Interest Margin = 0.04

Parent Company
P6,521,881,965
Net Interest Margin =
P177,468,582,339

Net Interest Margin = 0.04

Net Income after taxes
Return on Assets (ROA) =
Total Assets

Consolidated
P306,337,839
Return on Assets (ROA) =
P179,769,809,903

Return on Assets (ROA) = 0.00

Parent Company
P317,329,979
Return on Assets (ROA) =
P177,468,582,339

Return on Assets (ROA) = 0.00

 Net Income after taxes
Return on Equity Capital (ROE) =
Total Equity Capital

Consolidated
P306,337,839
Return on Equity Capital (ROE) =
P18,325,614,377

Return on Equity Capital (ROE) = 0.02

Parent Company
P317,329,979
Return on Equity Capital (ROE) =
P18,325,614,377

Return on Equity Capital (ROE) = 0.02

c. Asset Management Ratio

Net Sales
Asset Turnover Ratio =
𝐵𝑒𝑔𝑖𝑛𝑛𝑖𝑛𝑔 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠 + 𝐸𝑛𝑑𝑖𝑛𝑔 𝑇𝑜𝑡𝑎𝑙 𝐴𝑠𝑠𝑒𝑡𝑠
2
Consolidated
24,143,608,229
Asset Turnover Ratio =
151,146,753,957 + 179,769,809,903
2

24,143,608,229
Asset Turnover Ratio =
165,458,281,930

Asset Turnover Ratio = 0.15

Parent Company
24,232,928,258
Asset Turnover Ratio =
148,980,629,024 + 177,468,582,339
2

24,232,928,258
Asset Turnover Ratio =
163,224,605,681.5

Asset Turnover Ratio = 0.15

d. Debt Management Ratio

Total Liabilities
Debt to Equity Ratio =
Total Equity
Consolidated
161,332,690,765
Debt to Equity Ratio =
179,769,809,903
 Debt to Equity Ratio = 0.90
Parent Company
159,031,463,201
Debt to Equity Ratio =
177,468,582,339
Debt to Equity Ratio = 0.90
e. Market Book Ratio
Total Book Value = 2,961,377,520 − 2,345,156,121 = 616,221,399

616,221,399
Book Value Per Share = = 20,404.68
30,200

30,200,000
Price to book = = 1,480.05
20,404.68

III. Analysis of Company’s Financial Performance

This is an audit report by an external auditor on the consolidated financial statements of

Robinsons Bank Corporation (the parent company) and its subsidiary (group) Here is a review
of the key points

1. Scope of the Accounts: The Accounts relate to the consolidated financial statements of the
Group, and the separate financial statements of the parent company for the years ended 31
December 2021 and 2020 respectively.

2. COVERED FINANCIAL STATEMENTS: Various financial statements including statement of

financial position, statement of income, statement of comprehensive income, change in
equity, and statement of cash flows for each of the three years ended December 31, 2021.

3. DISCUSSION OF FINANCIAL STATEMENTS: The auditors have also reviewed the information
included in the financial statements, including a summary of significant accounting policies.
This is important because it provides additional context and explanation for understanding
financial statements.

4. Compliance with Standards: The auditor expresses the opinion that the consolidated
financial statements of the parent company comply with the Philippine Financial Reporting
Standards (PFRS). This means that the financial statements are prepared in accordance with
relevant accounting standards, ensuring consistency and comparability.

5. Fair Presentation: The auditors conclude that the financial statements present the fair
financial position of the group and the parent company in all material respects as of 31
December, 2021 and 2020.

In summary, this audit report indicates that the financial statements of Robinsons Bank
Corporation and its subsidiary are presented fairly and in accordance with relevant accounting
standards, providing stakeholders with reliable information about the financial performance
and position of the Group and the Parent Company.
IV. Insights Regarding Industry Comparisons

The audit file provides a warranty on the accuracy and compliance of the monetary statements
with accounting standards, industry comparisons can offer additional insights into the
performance and role of Robinsons Bank Corporation (the Parent Company) and its subsidiary
(the Group). Here are a few capability insights that would be received from industry
comparisons:

1. Financial Performance Benchmarking: By comparing key financial metrics including revenue

growth, profitability ratios (e.g., internet earnings margin), and performance ratios (e.g., go
back on assets) with enterprise friends, stakeholders can gauge how well Robinsons Bank
Corporation and its subsidiary are appearing relative to competition. If Robinsons Bank
Corporation constantly outperforms its friends in positive areas, it could imply strengths or
competitive blessings.

2. Risk Assessment: Analyzing enterprise benchmarks for financial leverage ratios (e.g., debt-
to-equity ratio) and liquidity ratios (e.g., present day ratio) can help check the threat exposure
of Robinsons Bank Corporation and its subsidiary in comparison to industry norms. A higher
debt-to-equity ratio, as an example, may propose higher financial hazard if it exceeds industry
averages.

3. Market Positioning: Comparative analysis of marketplace percentage, consumer pleasure

ratings, and product/provider services in the banking enterprise can offer insights into
Robinsons Bank Corporation's aggressive positioning. Understanding how the organization
fares in opposition to its peers in terms of marketplace penetration and patron loyalty can
inform strategic selection-making.

4. Regulatory Compliance: Assessing how Robinsons Bank Corporation's compliance with

regulatory necessities and governance practices compares to industry standards can spotlight
regions of energy or potential vulnerabilities. This consists of adherence to banking policies,
corporate governance hints, and moral requirements.

5. Technological Innovation: Comparing investments in generation, digital banking abilities,

and innovation tasks with enterprise peers can suggest Robinsons Bank Corporation's
preparedness for technological disruptions and its ability to meet evolving purchaser
expectations within the digital technology.

6. Operational Efficiency: Benchmarking operational metrics such as price-to-income ratio,

mortgage-to-deposit ratio, and worker productiveness in opposition to enterprise
benchmarks can assist perceive possibilities for improving operational performance and fee
control.

7. Customer Experience: Evaluating consumer remarks, brand belief, and carrier quality
benchmarks can offer insights into Robinsons Bank Corporation's recognition and patron pride
relative to competition. Positive differentiation in customer experience might also confer a
aggressive benefit in attracting and keeping clients.
 8. Sustainability and Social Responsibility: Comparing environmental, social, and governance
(ESG) practices, sustainability projects, and corporate social obligation (CSR) efforts with
industry peers can reveal Robinsons Bank Corporation's commitment to sustainability and
accountable business practices, enhancing its logo popularity and stakeholder accept as true
with.

By conducting thorough industry comparisons alongside the audit of monetary statements,

stakeholders can advantage a complete expertise of Robinsons Bank Corporation's overall
performance, function, and strategic priorities within the broader banking enterprise
panorama.

V. Suggestions For Additional Analysis

To further enhance the analysis of Robinsons Bank Corporation and its subsidiary, here are
some suggestions for additional analysis:

Trend Analysis: Trace financial metrics generated over the last few years to find out patterns,
growth tracts and alarming signals. This would help in understanding the company’s historical
performance and predicting future trends.

Ratio Analysis: Conduct a ratio analysis that includes liquidity ratios, profitability ratios,
solvency ratios and efficiency ratios. To assess the company’s operational efficiency, financial
health and overall performance of the business these indicators are compared with industry
averages as well as historical data.

Peer Group Comparison: Going beyond industry comparisons by selecting a peer group of
other banks or financial institutions similar in size. Compare Robinsons Bank Corporation’s
financial performance, market position and operational metrics against those of its direct
competitors.

Geographic Segmentation: Analyze geographical segmentation of operations for Robinsons

Bank if relevant. In different regions one should evaluate such indicators as performance
metrics; market dynamics; regulatory environment by identifying opportunities for
development or potential dangers.

Product and Service Analysis: Evaluate product lines individually and as part of Robinsons Bank
portfolio while reviewing service offerings’ effectiveness. This will include measures like profit
margins, revenue drivers as well as customer preferences which may be used to optimize
product.

By conducting these additional analyses, stakeholders can gain deeper insights into Robinsons
Bank Corporation's performance, risk profile, competitive positioning, and strategic
opportunities, enabling informed decision-making and value creation.