Harvard Business School Case Solution
CEO Assignment #1
Bank Analysis - Decomposition of ROE
FIN 420 – Bank Management
Summary: Utilizing data contained within the Uniform Bank Performance Report (UBPR) of a local bank, decompose the company’s 12/31/11 financial performance as well as information for its peer group. Analyze the results.
Available
Banks: Bank of Holland Grand River Bank Mercantile Bank Macatawa Bank
Format: Part #1 – Obtaining Information • Obtain bank financial information from UBPR • Complete decomp Excel worksheet • Compare bank financial information to peer group • Calculate ROA, ROE, and several bank ratios based on data
Part #2 – Analyzing Information • What were the three largest differences between your Bank and its peer group in the core ROE decomposition analysis? • How did the drivers (#1-3) help to understand the ROE decomposition? • Are there any drivers that could provide a better understanding of the Bank’s performance? • What was the largest surprise about your Bank in relation to its performance and comparison to peer group? • Identify three strategic initiatives that the Bank CEO could implement to improve performance? Identify the benefits of such initiatives but also the related costs to implement these initiatives.
Sources: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx 1) Select “Uniform Bank Performance Report” under the “Report” drop down menu 2) Type the name of the bank you select under “Institution Name”
Hand in: 1) ROE Decomposition Excel Worksheet 2) Memo to the CEO of the Bank you analyzed addressing the questions contained in part #2 above. Memo is to be no longer than two pages (0.75 inch margins, font 11, Times New Roman). All charts/tables should be included
Bank Analysis - Decomposition of ROE
FIN 420 – Bank Management
Summary: Utilizing data contained within the Uniform Bank Performance Report (UBPR) of a local bank, decompose the company’s 12/31/11 financial performance as well as information for its peer group. Analyze the results.
Available
Banks: Bank of Holland Grand River Bank Mercantile Bank Macatawa Bank
Format: Part #1 – Obtaining Information • Obtain bank financial information from UBPR • Complete decomp Excel worksheet • Compare bank financial information to peer group • Calculate ROA, ROE, and several bank ratios based on data
Part #2 – Analyzing Information • What were the three largest differences between your Bank and its peer group in the core ROE decomposition analysis? • How did the drivers (#1-3) help to understand the ROE decomposition? • Are there any drivers that could provide a better understanding of the Bank’s performance? • What was the largest surprise about your Bank in relation to its performance and comparison to peer group? • Identify three strategic initiatives that the Bank CEO could implement to improve performance? Identify the benefits of such initiatives but also the related costs to implement these initiatives.
Sources: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx 1) Select “Uniform Bank Performance Report” under the “Report” drop down menu 2) Type the name of the bank you select under “Institution Name”
Hand in: 1) ROE Decomposition Excel Worksheet 2) Memo to the CEO of the Bank you analyzed addressing the questions contained in part #2 above. Memo is to be no longer than two pages (0.75 inch margins, font 11, Times New Roman). All charts/tables should be included