Description
Performance Evaluation of Commercial Banks Please read the class note “Performance Evaluation” attached and “Note on How to Analyze a Bank,” by Michael King, Product #: W18011-PDF-EN (Harvard Business School Publisher) before working on the project. You should prepare a written analysis. The text analysis of a case should be about 5 pages (double-spaced), and you should also add tables and graphs to support your argument and your conclusion. Your write-up should begin with an opening paragraph that defines the main objectives of your project. The remainder of your write-up should support your reasoning and conclusions with your analysis based on the facts of the actual bank data. Structure is important for your analysis to be coherent. The grading will be based on the quality of your analysis and writing. You should present the material in a logical, clear and concise way. Points will be deducted for grammar mistakes and typos. Data to be collected Balance sheets and income statements of two money center banks, two regional or super regional banks, and two community banks from 2018 to 2022 (annual data is fine). Stock market data of the money center banks and super regional banks. Some community banks may not have publicly traded stocks.CRSP reports stock return, stock price informationYou can also find all the banks’ financial statements (call reports), no matter large or small, from https://cdr.ffiec.gov/public/. You can use wsj.com, Google Finance, Yahoo Finance and banks’ websites to get the information. It could be easier for you to download the information from CRSP and Compustat at WRDS. You can have access to this database for free as a Suffolk student. Analysis on Bank Performance Based on the data from the financial statements and the stock market for the 6 banks in your sample from 2018 to 2022, please address the following questions. What are the major changes in the CAMEL areas for the 6 banks over the 2018-2022 period? Please use tables and graphs to show the trend of the five CAMEL areas. You should use Excel to analyze the data and plot the graphs.Using the Dupont model to analyze the differences in profitability (ROE) among the 6 banks using the December 2022 financial statements. What are the potential reasons for the differences in profitability among these banks?
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Project Instructions
Performance Evaluation of Commercial Banks
Please read the class note “Performance Evaluation” attached and “Note on How to Analyze
a Bank,” by Michael King, Product #: W18011-PDF-EN (Harvard Business School
Publisher) before working on the project.
You should prepare a written analysis. The text analysis of a case should be about 5 pages
(double-spaced), and you should also add tables and graphs to support your argument
and your conclusion.
Your write-up should begin with an opening paragraph that defines the main objectives of
your project. The remainder of your write-up should support your reasoning and
conclusions with your analysis based on the facts of the actual bank data. Structure is
important for your analysis to be coherent.
The grading will be based on the quality of your analysis and writing. You should present
the material in a logical, clear and concise way. Points will be deducted for grammar
mistakes and typos.
Data to be collected
• Balance sheets and income statements of two money center banks, two regional or
super regional banks, and two community banks from 2018 to 2022 (annual data is
fine).
• Stock market data of the money center banks and super regional banks. Some
community banks may not have publicly traded stocks.
• You can use wsj.com, Google Finance, Yahoo Finance and banks’ websites to get
the information.
• It could be easier for you to download the information from CRSP and Compustat
at WRDS. You can have access to this database for free as a Suffolk student.
❖ CRSP reports stock return, stock price information
❖ Compustat reports firms’ financial statements
• You can also find all the banks’ financial statements (call reports), no matter
large or small, from https://cdr.ffiec.gov/public/.
Analysis on Bank Performance
Based on the data from the financial statements and the stock market for the 6 banks in
your sample from 2018 to 2022, please address the following questions.
1. What are the major changes in the CAMEL areas for the 6 banks over the 20182022 period? Please use tables and graphs to show the trend of the five CAMEL
areas. You should use Excel to analyze the data and plot the graphs.
2. Using the Dupont model to analyze the differences in profitability (ROE) among
the 6 banks using the December 2022 financial statements. What are the potential
reasons for the differences in profitability among these banks?
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