An analysis of the BHCPR reports on BB&T is presented in this chapter’s appendix. We examined a wide variety of profitability measures for that bank, including ROA, ROE, net profit margin, net interest and operating margins, and asset utilization. However, the various measures of earnings risk, credit risk, liquidity risk, market risk (price risk and interest rate risk), and capital risk were not discussed in detail. Using the data in Tables 6-5 through 6-9, calculate each of these dimensions of risk for BB&T for the most recent two years and discuss how the bank’s risk exposure appears to be changing over time. What steps would you recommend to management to deal with any risk exposure problems you observe?

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