Choose a country and a major bank (i.e. in the top 5) originating from that country. Assume that you are working for this bank and asked by the CEO of your bank to present an overview of the performance of your bank. Your assignment consist of the following parts:
1. Introduction (1 page )
2. Overview of the chosen country’s banking market (max of 2 pages)
The goal of this part is to present an overview of the chosen country’s banking market.
You should answer the following questions: What are the main structural features? How has been the recent performance of the sector? What are the factors affecting the performance of the sector? What are the recent regulatory developments.
You should employ appropriate macro/industry level statistics to describe the banking industry. For example, what are the concentration levels, levels of foreign ownership, state ownership, level of competition and risks in the market. You should provide these statistics on an historical and comparative basis.
For industry wide data and reports you should visit web-sites of World Bank and IMF as well as web sites of country specific regulatory bodies. You can access information on various financial sector indicators (concentration, profitability, risk…) through the World Bank World Development Indicators data base (.
For background readings, you should refer to your required textbook which has special chapters on main banking markets like the EU and the US.
3. Bank performance assessment report ( 5 pages)
The goal is to evaluate the performance a chosen bank in the country that you analysed in the previous part. The part should include the following four sections:
• Background information
a. Brief history
b. Ownership structure (listed or not, main shareholders, controlling (parent) organisation…)
c. Mission and vision
d. International activities (geographic footprint)
e. Market share of your bank in the total banking system’s assets, loans and deposits
• Performance assessment:
Assess the performance of your bank with respect to (i) profitability, (ii) asset quality, and (iii) capital adequacy. You should give definition of each ratio and explain in a few sentences what each ratio measures and interpret your findings.
Ratio analysis should include trend analysis and comparisons with the industry averages and or peers. You should apply “ROE Framework” and employ the key ratios
4. Conclusion: Provide an overall assessment of your bank given the industry/market conditions that you discussed (1 page ).
The bank and industry level balance sheet and income statement data should be accessed through ORBIS. ORBIS is a data base providing standardized financial, ownership and segment information on millions of companies world-wide.
The background information can be found in banks’ annual reports. You can find these reports on each bank’s web-site, usually under the section entitled: investor relations.
You should also consult journals such as The Banker, Financial Times and The Economist where you may find country specific special reports on banking sectors.
Ideally your bank should be publicly traded as this will increase the amount of publicly available information and the coverage of it in major business periodicals.
You should use tables, graphs and other visual aids to present and summarise your findings.
Make sure that you:
• Format your report appropriately,
• Give proper references to materials/books/articles that you used,
• Indicate sources of the data/statistics that you used,