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Evaluation of SunTrust Bank - Case Study Example

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Evaluation of SunTrust Bank Name: Lecturer: Course: Date: Executive Summary The analysis has been subdivided into four sections, namely; introduction, evaluation of the bank’s Profitability, analysis of the Risk Position of Unit Trust bank and Conclusion /Policy Recommendations…

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Evaluation of SunTrust Bank

This may be attributed to negative financial drivers in the market such as adverse economic cycles leading to lower Returns on equity. However, it can be scrutinized that Returns on Equity were higher in 2011 as compared to 2010. This is a positive indication that the management was performing considerably well. The positive drivers for higher returns on equity could be attributed to the ability of the company to employ investor’s capital to make more returns. The risk analysis section indicates that the ability of the company to set off short term debt was compromised in 2011 by higher loans commitments and subsequent losses. However, the total real estate loans to equity ratio were substantially lower in 2011 than all the previous years. This indicates that the company strength to offset long-term debts has been increasing progressively. Additionally, the liquidity ratio for the year 2011 was 8.11%, while in 2010 the ratio stands at 2.61%. This means that the position Unit Trusty Company to offset shorter debts was substantially higher in 2011 than in 2010. Connectively, the total risk based on capital was substantially higher in 2011 as compared to the rest of the periods. ...
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