Based on the information provided below about banks A and B, compute for each bank its return

Question:

Based on the information provided below about banks A and B, compute for each bank its return on assets (ROA), return on equity (ROE) and leverage ratio.

a. Bank A has net profit after taxes of $1.8 million and the balance sheet below:

b. Bank B has net profit after taxes of $0.9 million and the balance sheetbelow:

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...