BFF2401 Lecture Notes - Lecture 2: Dupont Analysis, Risk Measure, Financial Ratio
Document Summary
Introduction: a performance framework, types of assessment, data. Financial ratio analysis: new approaches to measuring performance, conclusions. Bank performance a framework: bank management, policy setting and strategy, competitor financial institutions, merger and acquisition decisions, strategy, shareholders/investors, investment decisions, regulators and the community, supervisory assessments. Financial analysis: profitability & performance ratios, risk measures. Financial press e. g. australian financial review: australian payments clearing association (apca, data services e. g. canstar cannex, bank annual report data, balance sheet (statement of financial position, shows the bank"s financial state at a point in time, e. g. Income statement (statement of financial performance: shows a bank"s major categories of revenue and expenses over a period of time, statement of changes in equity, shows items which impact on the bank"s equity, e. g. Important to look at the level and breakdown of different types of obs: financial guarantees. Week 2: analysis of bank performance: e. g. standby letters of credit.
