financial analysis
2008 2009 2010 2011 2012
Summit Bank 0.95 0.59 0.54 0.62 0.54
JS Bank 0.65 0.55 0.53 0.43 0.33
Industry Average 0.81 0.75 0.69 0.61 0.58
ADR
Over the years, the ratio is in a decreasing trend for Summit Bank.
With comparison for the last five years, the ADR is greater than that of JS bank which clearly shows that the advances given by summit bank were much greater than given by the JS bank.
If we compare it to the industry average both of the banks are not doing well. This may be because these are small banks and not one of the big six banks of the banking industry.
It started declining with the rise in investment to deposit ratio due to the government’s massive borrowing from the banking sector as it destroyed the balance between advances to investment.
The State Bank has been persuading the banks to make a strategy for higher advances to the private sector but the government seems determined to borrow largely from banks giving them easy income.
IDR
2008 2009 2010 2011 2012
Summit Bank 0.33 0.40 0.39 0.40 0.52
JS Bank 0.34 0.45 0.52 0.55 0.74
Industry Average 0.32 0.43 0.45 0.46 0.54
The ratio has increased over the five years for summit bank.
The competitor (JS bank)’s IDR has increased at a much higher rate.
Usually the local banking sector feel it safer to make investments rather than advances due to the high rate of defaulting customers where as they know that governments would easily pay back investment returns by printing more currency.
2008 2009 2010 2011 2012
Summit Bank 0.85 0.85 0.86 0.78 0.77
JS Bank 0.39 0.49 0.52 0.57 0.68
Industry Average 0.71 0.75 0.74 0.73 0.76
EAR
CASA
2008 2009 2010 2011 2012
Summit Bank 0.26 0.44 0.58 0.51 0.57
JS Bank 0.48 0.53 0.63 0.61 0.63
Industry Average 0.39 0.50 0.57 0.55 0.62
Casa ratio shows a rapid increase over the first three years, getting almost doubled. In 2011, the ratio shows a decrease of 12% and in 2012 it accelerated back to 57% showing almost 12% increase. Still it has not
Summit Bank 0.95 0.59 0.54 0.62 0.54
JS Bank 0.65 0.55 0.53 0.43 0.33
Industry Average 0.81 0.75 0.69 0.61 0.58
ADR
Over the years, the ratio is in a decreasing trend for Summit Bank.
With comparison for the last five years, the ADR is greater than that of JS bank which clearly shows that the advances given by summit bank were much greater than given by the JS bank.
If we compare it to the industry average both of the banks are not doing well. This may be because these are small banks and not one of the big six banks of the banking industry.
It started declining with the rise in investment to deposit ratio due to the government’s massive borrowing from the banking sector as it destroyed the balance between advances to investment.
The State Bank has been persuading the banks to make a strategy for higher advances to the private sector but the government seems determined to borrow largely from banks giving them easy income.
IDR
2008 2009 2010 2011 2012
Summit Bank 0.33 0.40 0.39 0.40 0.52
JS Bank 0.34 0.45 0.52 0.55 0.74
Industry Average 0.32 0.43 0.45 0.46 0.54
The ratio has increased over the five years for summit bank.
The competitor (JS bank)’s IDR has increased at a much higher rate.
Usually the local banking sector feel it safer to make investments rather than advances due to the high rate of defaulting customers where as they know that governments would easily pay back investment returns by printing more currency.
2008 2009 2010 2011 2012
Summit Bank 0.85 0.85 0.86 0.78 0.77
JS Bank 0.39 0.49 0.52 0.57 0.68
Industry Average 0.71 0.75 0.74 0.73 0.76
EAR
CASA
2008 2009 2010 2011 2012
Summit Bank 0.26 0.44 0.58 0.51 0.57
JS Bank 0.48 0.53 0.63 0.61 0.63
Industry Average 0.39 0.50 0.57 0.55 0.62
Casa ratio shows a rapid increase over the first three years, getting almost doubled. In 2011, the ratio shows a decrease of 12% and in 2012 it accelerated back to 57% showing almost 12% increase. Still it has not