Southwest State Bank Case - Profitability/Swot Analysis
Key Trends Identified in SSB's Profitability from 1991 through 1993
According to the calculated ratios in Table-1, SSB had the following major trends in profitability during the time of 1991 to 1993:
Decreasing return on equity (ROE) - shareholder return
Gradual & unsteadily decreasing return on assets (ROA) - managerial efficiency
Decreasing net non interest margin less profit earned on non-interest banking components
Increasing earnings spread have established effective processes of borrowing and lending money with little immediate threat of competitors
Unfavorably increasing operating efficiency ratio - there is an excess of operating cost in relation to operating revenues generated by SSB.
Declining credit risk/depositor risk decline of bad loans, increased market values of good loans relative to amount of deposits.
Increasingly higher interest rate risk - meaning that there is about 30% of excess interest sensitive assets compared to......
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