Project
Remember HSBC is the bank that is used for comparison purpose only - no group should select HSBC as their bank for investigation.
In group work, please select a bank that you want to learn more about. Download the financial statements of the bank.
1. Describe the services your bank provides.
2. Provide an overview of the Balance Sheet and the Income Statement.
a. Describe and analyze the components of both (you may want to report the data as a percent of Assets.)
3. Measure and evaluate the performance of your bank given different profitability ratios.Compute the ratios for a few quarters/years to have a meaningful discussion on your results. Some important variables are:
a) Net Interest Margin, b) Non interest margin c) ROE, d) ROA, d) PLL, e) ALL, f) non-performing loans.
4. Provide a breakdown of return on assets (ROE) using the lecture notes for closer analysis
a. What is the breakdown telling us?
5. Report total derivatives and its components as a percentage of total asset.
(I discussedsome of the derivatives- but I didn't talk about SWAPS, interest rate CAPS, interest rate FLOORS - however, include those if your bank has positions in SWAPS etc.)
6. Do the same analysis above for HSBC. Compare the results for your bank with that of HSBC.
Guidelines
1) 4 pages max (12 points - 1.5 space).
2) Start with a summary section.
3) Write a conclusion section.
4) Write down assumption(s), if any, you make in a separate section.