Case study on Bank Management - Essay Example

Only on StudentShare

Extract of sample
Case study on Bank Management

2. Profit margin: It is the ratio of net income to the operating revenue, and this ratio represents the financial efficiency of the bank. The corresponding value for First National Bank is 8.51% as compared to 6% for its peers. In other words, the First national Bank makes more profit per unit of operating revenue, thereby making this bank more efficient that its peers.
Hence, the overall profitability of the bank can drastically improved by and wealth can be unlocked by increasing the loan ratio and hence valuing the bank based on present financial performance may lead to undervaluing the bank.
To calculate the valuation of the First National Bank using the discounted free cash flow or the present value of future earning process, the extra piece of information required will be the rate of growth of dividend.
However, the valuation of the bank can also be calculated by the price/earnings ratio. Since, as has been discussed above, the present earnings are sub optimal the bank should not be valued by multiplying the earning by the PE ratio. ...Show more


Prima facie, the performance of the bank is below par and most of the financial ratios of this bank do not match up to the corresponding ratios of its peers. However, on close inspection it can be found that there are two ratios that offer a different image.
Author : wuckertcelia
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Case study on Bank Management"
with a personal 20% discount.
Grab the best paper

Related Essays

Peoples Bank: A Marketing Management case study
With the increasing competition in the banking industry the importance of online provision of insurance services has helped the bank in reducing the costs of paper handling and teller interactions. This in turn helps the customers in shape of reduced fees and increase in number of customers for the bank.
3 pages (750 words) Essay
Hospitality Management Case Study
Having experienced the SARS, July 7th, 2005 terrorist attack, and the Bird Flu, which have slowed down the UK economy and had an adverse effect on the hotel industry, there are now clear signs of recovery. This report will first examine the UK based Thistle Euston hotel market, discuss the main industry players and show the relative significance of key issues.
10 pages (2500 words) Case Study
A Literary Response to Waiting for Godot
Strangely enough, the tramps are unsure as to why they are waiting only mentioning in passing that they are expecting "a kind of prayer." And yet, they wait, both not leaving the spot by the tree - even after news that Godot is not coming. The first audience of the play found this storyline rather absurd.
8 pages (2000 words) Book Report/Review
Case study World Bank
(Kotler, Philip. Marketing management: analysis, planning, implementation and control 8th ed. Prentice-Hall, 1994) ( Webber) Globalization and International investment on the rise, the premier business publication Forbes magazine undertook the responsibility of evaluating the world trend in investment and marketing on some sound ground rules which would govern their role in the arena of international player in the world market.
3 pages (750 words) Essay
International Management Case Study
This extends to the management of employee behaviour and the strategies deployed for the maximisation of employee motivation levels. With specific focus on whether or not knowledge of achievement motive would be of any value to expatriate managers in Madruga's Singapore subsidiary, the report will argue that even though it is of value, the said value can only be realised if pre-existing achievement motive knowledge is adjust to correspond with the culture in question.
4 pages (1000 words) Case Study
Moral Intelligence Development Paper
Ethics is the set of moral principles or set of values and standards that we have come to adopt since childhood. Intelligence makes a difference but one must learn how to use it properly as a tool to
9 pages (2250 words) Essay
Case study on ch3 : Juniper Bank
wledging that they take the customers’ perspectives, needs, demands, points of views, and designed strategies based on the information gathered to address the customers’ varied financial requirements. Initially, being established in the 2000s, Juniper Bank could be regarded
2 pages (500 words) Essay
Find out how much would it cost
to 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