KEY FINANCIALS AND PERFORMANCE RATIOS FOR BANKS

Credit Risk provides extensive financial data including pre-calculated ratios on global banks and financial institutions from the last four years, enabling you to accurately assess new and existing counterparty risk. Financial data is derived directly from Annual Reports, however some ratio calculations may vary according to each bank or financial institution, country regulations or regional variations.

Total assets Total equity Pre-tax profits Post-tax profits Pre-tax profits / total assets (av) Pre-tax profits / total equity (av) Tier 1 capital ratio Total capital ratio Total equity / net loans Net loans / total deposits Loan loss reserves / gross loans (av) Loan loss reserves / net loans Loan loss reserves / net loans (av) Total deposits / net loans ratio

TOTAL ASSETS
Total assets represent resources with economic value that a corporation owns or controls with the expectation that it will provide future benefit. Total assets are calculated from year end figures gained from bank balance sheets. Formula = Cash and Equivalents + Other Earning Assets excluding Loans + Net Loans + Fixed Assets This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

TOTAL EQUITY
Stockholders' equity represents the equity stake currently held on the books by a firm's equity investors or shareholders. Formula = Equity Reserves + Total Share Capital

Total equity is used to calculate various Capital Adequacy, Profitability and Asset Quality ratios of the bank. This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

PRE-TAX PROFITS
A measurement of financial profitability, pre-tax profit combines all profits before tax, including operating, nonoperating, continuing operations and non-continuing operations. Formula = Total income - Total expenses (before taxes) This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

POST-TAX PROFITS
Post-tax profit is a measure of profitability and represents net income for the group as a whole. This is calculated before deducting minority interests and preference dividends. Formula = Pre-Tax Profit (PBT) Taxes This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

PRE-TAX PROFITS BY TOTAL ASSETS AVERAGE

The return on assets (ROA) percentage shows how profitable a company's assets are in generating revenue. The ratio is considered an indicator of how effectively a company is using its assets to generate earnings before payment of taxes and dividends. Formula = Pre-tax profits / Total Assets average The ratio is part of Profitability ratios of the bank, where: Pre-tax profits = Total income - Total expenses (before taxes) Total income includes interest income, commission, fees, other operating income, non operating income, exceptional and extraordinary income. Total Expenses includes interest expense, commission, fees, other operating expenses, non operating expenses, exceptional and extraordinary expenses. This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

RETURN ON EQUITY
Return on equity (ROE) measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested. Formula = Pre-tax profit / Total Equity average The ratio is part of Profitability ratios of the bank, where: Pre-tax profits = Total income - Total expenses (before taxes) Total equity = Equity Reserves + Total Share Capital Equity Reserves includes retained earnings, current year earnings, other equity reserves, revaluation reserves and minority interests in reserves. Total share capital is sum of common shares/stock, preferred stock/shares, minority interest less treasury stock. This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

TIER 1 CAPITAL RATIO

Tier 1 capital is the core measure of a bank's financial strength from a regulator's point of view. It absorbs losses without a bank being required to cease trading. Formula = (Total Equity - Revaluation Reserves) / Risk Based Assets Tier 1 Capital Ratio is part of 'Capital Adequacy' ratios of the bank, where: 1 Total equity = Equity Reserves + Total Share Capital Equity Reserves includes retained earnings, current year earnings, other equity reserves, revaluation reserves and minority interests in reserves. Total share capital is sum of common shares/stock, preferred stock/shares, minority interest less treasury stock. 2 Risk Based Assets = Total Asset - Cash and Equivalents - Fixed Assets OR Risk Based Assets = Other Earning Assets excluding Loans + Net Loans 3 Total Assets = Cash and Equivalents + Other Earning Assets excluding Loans + Net Loans + Fixed Assets Other earning assets includes treasury and other bills, government securities, deposits with banks, trading, financial and other listed securities including bonds, other equity investments such as equity share, non-listed securities, other assets and intangible assets such as software, patents etc. Net loans include loans to banks or credit institutions; customer net loans; HP, lease or other loans; mortgages; loans to group companies and associates and trust account lending.

Fixed assets include land and buildings and other tangible assets such as plant and machinery, furniture, fixtures and vehicles etc.

CAPITAL ADEQUACY RATIO

Capital Adequacy Ratio (CAR) or Total Capital Ratio measures a bank's capital position and is expressed as a ratio of its capital to its assets. It determines the capacity of the bank in terms of meeting the time liabilities and other risks such as credit risk, operational risk, etc. CAR below the minimum statutory level indicates that the bank is not adequately capitalized to expand its operations. The ratio ensures that the banks do not expand their business without having adequate capital. Formula = (Tier 1 Capital + Tier 2 Capital) / Risk Based Assets Total Capital Ratio is part of 'Capital Adequacy' ratios of the bank. Where, 1. Tier 1 Capital = Total Equity - Revaluation Reserves 2. Tier 2 Capital = Revaluation Reserves + Subordinated Debt + Hybrid Capital + Provisions including Deferred Tax+ Total Loan Loss & Other Reserves 3. Total equity = Equity Reserves + Total Share Capital This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

TOTAL EQUITY BY NET LOANS

This ratio forms part of the Capital and Funding ratios of a bank, and measures a company's financial leverage by calculating the proportion of equity and debt the company is using to finance its assets. Formula = Total Equity / Net Loans Total equity covers total equity reserves, total share capital and treasury stock. Net loans include loans to Banks or Credit Institutions, Customer net Loans and loans to group companies.

NET LOANS / TOTAL DEPOSITS

Forming part of the Liquidity ratios of a bank, this ratio is often used by policy makers to determine the lending practices of financial institutions. The higher the Loan-to-deposit ratio, the more the bank is relying on borrowed funds.

Formula = Net Loans / Total Deposits Net loans include: loans to banks or credit institutions; customer net loans; HP, lease or other loans; mortgages; loans to group companies and associates and trust account lending. Total deposits cover customer deposits, central bank deposits, banks and other credit institution deposits and other deposits. This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

LOAN LOSS BY GROSS LOAN AVERAGE

This ratio forms part of the 'Asset Quality' ratios of the bank and determines the quality of loans of a bank. The higher the ratio, the more problematic the loans are and vice versa. Formula = Loan loss reserves / net loans average Net loan average is defined as the average of net loans of the prior year and the net loans of the current year. This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

LOAN LOSS BY NET LOANS

This financial ratio is a part of 'Asset Quality' ratios of the bank and is calculated by loan loss reserves by net loans. The ratio determines the quality of loans of a bank. The higher the ratio, the more problematic the loans are and vice versa. Formula = Loan Loss Reserves / Net Loans This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

LOAN LOSS BY GROSS LOAN AVERAGE

This ratio is part of 'Asset Quality' ratios of the bank and determines the quality of loans of a bank. The higher the ratio, the more problematic the loans are and vice versa. Formula = Loan Loss Reserves / Gross Loans average Gross loans average comes from the average of the gross loans of prior year and the gross loans of the current year. This ratio forms part of the financial lines in the Bankers Almanac Credit Risk solution's financial spreads.

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