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

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:

Bank B (in millions) Assets Reserves Loans Securities S7.5 Deposits S55.0 Borowing S23.5 Bank Capital Liabilities $75.0 S3.0 $8.0

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