Financial markets/Financial institutions: Assessments of Bank Performance

Overview

• The financial status of banks may be monitored and analyzed along a number of dimensions, including profit-and-loss and balance sheet data, along with financial ratios of many types reflecting different operational facets, including asset liquidity, capital fund adequacy and profitability. Such measurements and analyses are performed as the bank reports each particular type of data. The balance sheet is reported monthly while profit-and-loss data are reported quarterly.

• Bank financial results may be assessed and their changes tracked through reports of interest and dividend income, a bank's main source of revenue; interest payments, net interest and dividend income, NPLs, non-interest income, non-interest expenditures, total revenues and net profits. Important balance sheet data includes, for example, loans, deposits and shareholder equity information.