Mention and explain the major line items on a bank’s income statement. What can the numbers on an income statement imply in terms of a bank’s risk management decisions?
Extracted text: ΑΝΝEX 1 Dec 2019 Dec 2020 BANKING SECTOR: EARNINGS AND PROFITABILITY ANALYSIS ROA ROE Net Interest Margin (NIM) Spread Burden Rat Efficiency Ratio 3.00 3.10 14.90 16.00 9.10 9.10 7.98 8.01 3.45 3.73 67.60 66.30
Extracted text: A B D 1 ZED BANK - INCOME STATEMENT ANALYSIS 2 (K' 000) Dec 2019 Dec 2020 3 4 Interest Income Interest income from loans and advances 545,952 592,378 5 6 Interest income from investments in securities 218,882 224,592 Interest income from banks and financial institutions 26.913 27.616 844,586 7 Total Interest Income 791,747 10 Interest Expense Interest expense paid on deposits 12 Interest expense paid to banks and financial institutions 13 Interest expense paid on other borrowed funds Total Interest Expense 11 247,466 253,921 49,145 23.562 320,172 50,427 24.177 14 328,525 15 16 17 Operating Income (Total Revenue) 18 Interest Income 19 Non-interest income 20 Total Operating Income 791,747 844,586 459.957 1,251,705 471.956 1,316,542 21 22 Operating Expense 23 Interest expenses 24 Provision for loan losses 25 Non-interest expenses 26 Total Operating Expense 320,172 36,556 328,525 37,510 467,492 824,220 479,687 845,722 27 28 Profit before taxes (or Pre-tax Net Operating Income) 427,485 470,820 29 30 Taxes 43.250 70,740 31 32 Profit after taxes (or Net Income) 384,235 400,080 33