Ratios

Meaning

Definition

Profitability

Asset Yield (AY)

AY = Interest/Asset

Profit Margin (PM)

PM = (Profit/Turnover) × 100

Return on Equity (ROE)

ROE = PM × AY × LF

Liquidity

Liquid Asset Ratio (LAR)

LAR = (Total Cash/Asset) × 100

Loan to Deposit Ratio (LDR)

LDR = (Loan/Deposit) × 100

Debt Ratio (DR)

DR = Debt/Equity

Interest Rate Risk Management

Asset Interest Yield (AIY)

AIY = IR/A

Break Even Yield (BEY)

BEY = IE/A

Net Interest Margin (NIM)

NIM = NII/A

Credit Risk Management

Loan Loss Provision (LLP)

LLP = Total Loan Loss/Total Loan’

Risk Adjusted Margin (RAM)

RAM = NI + OI ? PRI/AA