StudentShare solutions
Triangle menu

Risk and profitability analysis - Coursework Example

Not dowloaded yet

Extract of sample
Risk and profitability analysis

Commercial banking is another kind of service offered by the bank which includes Credit and lending, International trade and receivables finance, Payments and cash management, Insurance and investment, GB&M. Global banking and markets is another verticals of services provided by the banks which comprises of Global markets and Global banking. The bank provides another domain of services like Global private banking which involves Private banking, Investment management and Private trust solutions (HSBC, 2012, pp. 60-61). Lloyds provides a range of products and services financial services which involves Debt capital markets, structured finance, Working capital finance, Private equity, Trade and supply chain finance, Terms loans and overdraft. Risk management service is another vertical of the bank which comprises of Inflation linked solutions, Interest rate risk management solutions, Commodities market related solutions, Foreign exchange related solutions, and Additional risk related services. ...
Other verticals of services of the bank are Private banking and Business banking and corporate banking (RBS, 2012). B. Profitability and Risk Analysis of Four Banks HSBC:-It is a British multinational bank and also a financial service company which has it’s headquarter in London, UK. It is one of the largest bank is the world. It has earned $20.64 billion in 2012 and profit of $14.02 billion. HSBC Profitability Ratios 2009 2010 2011 2012 Return on equity capital 0.04 0.08 0.10 0.08 return on assets 0.00 0.01 0.01 0.01 net interest margin 0.02 0.02 0.02 0.02 net non interest margin 0.01 0.02 0.02 0.02 net bank operating margin 0.00 0.00 0.01 0.00 earning per share 0.04 0.09 0.11 0.08 From the above table we can see that return on equity capital has increased over the period of time from 2009 to 2010 to 2011.But in 2012 it has decreased slightly. Overall position of ROE was quite high. Return on assets was low continuously which means net income over total assets was quite low. Net interest margin remained stable during the period. Net non interest margin increased in 2010 from 2009 and then remain stable. Net bank operating margin was low. Earnings per share have improved during the period with exception in 2012. Overall profitability ratios for HSBC were remaining stable for the period of four years. credit risk measure 2009 2010 2011 2012 total loans/total deposits 0.97 0.92 1.18 1.24 provision for loan losses/total loan 0.11 0.06 0.03 0.02 liquidity risk measure 2009 2010 2011 2012 net loans/total assets 0.10 0.11 0.15 0.15 purchased funds/total assets 0.94 0.94 0.94 0.93 cash assets and govt. securities/total assets 0.39 0.38 0.40 0.40 interest rate risk ...Show more

Summary

Risk and profitability analysis A. Range of Services Offered by Different Banks SERVICES/ BANK NAME HSBC BARCLAYS RBS LLOYDS RETAIL BANKING AND WEALTH MANAGEMENT Y Y Y N COMMERCIAL BANKING Y N N N GLOBAL BANKING Y N N Y GLOBAL PRIVATE BANKING Y N N Y INVESTMENT BANKING N Y N N CORPORATE BANKING N Y Y Y RISK MANAGEMENT SERVICE Y N N Y CASH MANAGEMNT N Y Y Y BUSINESS BANKING N Y Y N Note- Y- YES, N- NO…
Author : jacintobalistre
Risk and profitability analysis essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the coursework on your topic
"Risk and profitability analysis"
with a personal 20% discount.
Grab the best paper

Related Essays

Leveson Inquiry - Risk management analysis
The Inquiry then heard spates of public hearings throughout 2011 and 2012, before publishing the Leveson Report in November 2012. The relation between the recommendation by the Leveson Inquiry and the operations of the Department for Culture Media and Sport (DCMS) is that the Inquiry reviewed the general ethics, ethical standards and culture of the British media, before making recommendations for a new autonomous entity to face out the existing Press Complaints Commission.
12 pages (3000 words) Coursework
Environmental Risk Management
Some of the major environment legislations that seek to encourage the conservation of environment and control the disposal of radioactive wastes include Environmental Permitting Regulations 2011 SI 2043, Plant Protection Products Regulations SI 2011/2031 and Energy information Regulations 2011 SI 1524.
8 pages (2000 words) Coursework
Risk Management Report: Saint Charles Bank
There are two broad approaches used to measure bank performance, the accounting approach, which makes use of financial ratios and econometric techniques . Traditionally accounting methods primarily based on the use of financial ratios have been employed for assessing bank performance (Gregory, 2012) .
14 pages (3500 words) Coursework
Banking Regulation and Risk
Some of the services being offered can be the collection of the deposits from the customers and the lending of money to them. This will also depend with the ability and capability of
14 pages (3500 words) Coursework
Risk management case study analysis
Patient management should always be holistic, all the cadres i.e. doctors, and nurses, pharmacists and radiologists should always work together and discuss the patient problem. These practices will bring good and
7 pages (1750 words) Coursework
Word limit Part B: 1100 words Question 2 Table 2 below shows five alternative ways to invest a 100,000 lump sum. Explain how each of the investments might be exposed to the three high-level risks: capital risk, income risk and liquidity risk. Discuss ho
nt value method is a financial tool that permits the future cash flows to be discounted over their time periods and brought to their present value (Damodaran, 2002). Two of the reasons for an investor should be interested in the present value method are: The three investment
5 pages (1250 words) Coursework
Apple Company (APPL) Financial Analysis Assignment
n the city of New York in 1841, which was considered as the first and primary source of consistent, reliable and objective information provider to the ultimate customers. (Dnb.com, 2014)However, that was Benjamin Douglass, who had shaped the company into its present form and
4 pages (1000 words) Coursework
Risk and Return Relationships Analysis
different markets and bounce between stick index futures, stock options and stocks in various exchanges through trading that drives profits at the exchanges. However, the stock market is neglecting one of its core aspects, the small companies and this has led to fewer companies
2 pages (500 words) Coursework
Risk
Companies are exposed to various risks, and the success or failure of these businesses is determined by the efficiency with which the business managers respond to the various risks (Bender & Ward, 2012). Various risks affect the
2 pages (500 words) Coursework
Ratio Analysis
Moreover, the diagnosis of the statements of financial position compares a variety of variables that relate together and is helpful in quantifying how the values relate to each other as presented in the comprehensive income statements
3 pages (750 words) Coursework
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation