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Retrieving the necessary information from the Bank of Spain database, calculate and represent following indicator from 20
a)non-performing loans ratio (=doubtful debtors/loans)
b)Loans to total assets & deposits to total assets
c)loan to deposit ratio
d)”Deposits/ Employees” & “Deposits/Branches”
e) ROA and ROE
Note: The exercise is focused on loans and deposits of other resident sector
A brief and clear explanation of results for each section should be provided in a separate paper
Bank of Spain
2006 2007 2008 2009 2010
NPL 0.61% 0.70% 1.30% 3.28% 6.10%
LOAN TO TOTAL ASSETS 66.54% 67.93% 68.66% 66.17% 64.72%
DEPOSIT TO TOTAL ASSETS 65.92% 62.85% 64.00% 65.90% 66.48%
LTD 150% 155% 158% 152% 149%
DEPOSIT/EMPLOYEES 6.65 7.13 7.81 9.17 9.74
DEPOSIT/BRANCHES 40.21 44.27 47.61 56.02 59.35
ROE 19.80% 21.40% 17.70% 9.00% 9.50%
ROA 1.02% 1.11% 0.73% 0.54% 0.56%
4.00% 3.28%
3.00%
2.00% 1.30%
0.61% 0.70%
1.00%
0.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
61.87%
62.00% 60.36% 60.62%
59.58%
60.00% 58.94%
58.00%
56.00%
54.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
61.87%
Percenta
62.00% 60.36% 60.62%
59.58%
60.00% 58.94%
58.00%
56.00%
54.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
80.00%
65.92% 62.85% 64.00% 65.90% 66.48%
58.79% 55.39%
60.00% 53.35% 54.87% 51.53% 50.11%
Percentage
40.00%
20.00%
0.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Years
15.00%
Percentage
9.00% 9.50%
10.00% 7.40% 7.80%
5.00% 4.40%
5.00% 2.80%
0.00% -3.00%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-5.00%
Years
0.20%
0.00% -0.17%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-0.20%
-0.40%
Years
0.20%
0.00% -0.17%
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
-0.20%
-0.40%
Years
epresent following indicator from 2006 to the latest data available:
te paper
Loans to total assets: the ratio measures the percentage of assets that is tied
up in loans. The higher the ratio, the less liquid the bank is. Net Loans
represents total loans to customers, reduced by possible default losses and
unearned interest income. During 2008, banking system in Spain deployed
mostly of their assets as loans, but then constantly reduced the ratio by almost
10 pp.
Deposit to total assets: indicates the broad reliable base of funding for the
bank. This ratio establishes how much of the bank’s assets are funded by
deposits, rather than borrowed funds or equity. Despite a considerable
increase of this ratio during the first 5 years in study, it was followed by a
constant decrease after 2011, with the lowest level in 2016 (50.11%)
112%
2016
47
6
6
55
Return on Equity (ROE): The return on equity is the return that investor earn
on their funds. For this purpose, the numerator consider the after-tax earnings
of the bank institutions while the denominator would be their equity. As show
in the chart, ROE in Spain has decrease considerably since its highest in 2007
(21.40%) to the deeper valley in 2012 (-3.00%)