Vcb vs ctg
6M2022
mil VND
VCB
CTG
7.67%
6.07%
Equity ratios
Owner’s equity/
total assets
Equity’s growth
12.7%(comes from a 10,000,000 9.75%(due to RE)
(compared to last
increase charter capital)
year final numbers)
Financial leverage
Assets Quality
NPL
0.61%
1.35%
Assets focused on customers
Compared to VCB, CTG
lending and ready for trade
lending portfolio seems to
stocks
have a priority for short
term lending (60%vs
50%) and less focused on
long term.
Liquidity
Acid ratio (CAinven/CL)
Loans/Deposits
Size
Number of
employees
Number of shares
Profitability
ROE
ROA
Net income
Efficiency ratio
Cost to income ratio
(expense/reven)
Cost of funds
ABC
20X3
Equity ratios
Owner’s equity/
total assets
Equity’s growth
(compared to last
year final numbers)
Financial leverage
Assets Quality
NPL
Liquidity
Acid ratio (CAinven/CL)
Loans/Deposits
Liquidity coverage
ratio
Size
Number of
employees
Number of shares
20X4
Profitability
ROE
ROA
ROCE
Efficiency ratio
Cost to income ratio
(expense/reven)
Cost of funds
Net income/no of
employees
EVA
RAROC (Risk
adjusted
earnings/capital
employed)
Ratios serve to inform investors, and depositors which bank is safe/ good.
Some requirements: bank is liquid, leverage ratio, degree of risk
Depositors looking to deposits can look to ROE and ROA to find if bank is performing
better this or last year. ROA determines how well assets are utilized by manager of the
bank. If this is lower it raise question why?-> what kind of people is in the bank.
Management of the bank(people involved in operation; BOM) is interested in how bank
perform in last year?
1. Put a target for 2023
2. Finding weak points, strong points with variance analysis (achievement vs target). 2
outcome
- adverse
- favor
From then, you know where you are among competitors in the industry. Ultimate goal
is to determine and design business strategy.
ROE and ROA does not include the degree of risk in their calculation so investors
looking at high number of returns can be misleading. There is another ratio called
RAROA, risk-adjusted return on asset and RAROE, risk-adjusted return on equity.