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Director's Corner

San Francisco Region Director's College Computer- Based Training
Earnings

UBPR - Summary Page
In the Earnings and Profitability section of the Summary page for First State Bank, review the five ratios that we just talked about:

  • Net Income
  • Net Interest Income
  • Non-interest Income
  • Non-interest Expenses (overhead expenses)
  • Provision for Loan Losses
This is the Summary Ratios page of the Uniform Bank Performance Report. It contains current and historical ratios that summarize the bank's financial performance and condition. It also contains corresponding average ratios for a peer group of banks with similar asset sizes and number of branches. The ratios are grouped in the following sections: Earnings and Profitability, Margin Analysis, Loan and Lease Analysis, Liquidity, Capitalization, and Growth Rates. The ratios that are highlighted and applicable to this exercise are as follows: The Net Income to Average Assets ratio is 1.14% for 2004, compared to 1.39% for 2003. The peer ratio is 1.26% for 2004. The Interest Income to Average Assets ratio is 8.28% for 2004, compared to 7.74% for 2003. The Interest Expense to Average Assets ratio is 3.63% for 2004, compared to 3.36% for 2003. The Net Interest Income to Average Assets ratio is 4.65% for 2004, compared to 4.38% for 2003. The Non-Interest Income to Average Assets ratio is 0.52% for 2004, compared to 0.58% for 2003. The Non-Interest Expense to Average Assets ratio is 2.89% for 2004, compared to 2.64% for 2003. The Provision for Loan and Lease Losses to Average Assets ratio is 0.37% for 2004, compared to 0.16% for 2003.

What has caused the decline in net income?

Answer.

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Last Updated 06/29/2005 Supervision@fdic.gov