 Volume of earning assets= EA/TA

 Yield on earning assets=interest income/TA

 Composition=$amount of asset i/EA

A. Volume of earning assets

We calculated first the total earning assets and then divided them by the total assets to get the

volume in each 2013 and 2014.

  2013 2014

volume of EA= EA/TA 93.4% 93%

Table 6: volume of EA

As we can see in the above table, the volume of earning assets decreased from 2013 to 2014.

Therefore the decrease of AU, ROA and ROE in 2014 depends on the volume of earning assets.

B. Yield on earning assets

  2013 2014

yield on earning assets=interest income/earning assets 5.47% 5.50%

Table 7: yield on EA

As we can see in the above table, the yield increased from 2013 to 2014. Therefore, despite the

decrease in the volume on earning asset they were able to generate more interest income in 2014

due to higher interest rate.

These two ratios pushed the interest income ratio by only 0.001%.

C. Composition and mix

Column1 Column2 Column3 Column1 Column2

2013 2013 2014 2014

asseti/TA comp and asseti/TA comp and

mix mix

government debt securities 0.0128693 0.013580

0.18 98 0.18 172