Bank Analysis

Manufacturers and Traders Trust Company

Bank Summary

February 25, 2010

Financial Ratios

I. ROE= Net income/Shareholder’s equity

M&T=-8.19%

Peers=-3.10%

II. ROA=Net income/Total assets

M&T=-1.3%

Peers=-.34%

III. Net NIM= (Investment revenues-interest expense)

Average Earnings assets

M&T=3.17%

Peers=2.29%

IV. NOM=(total operating revenues-total operating expenses)/total assets

M&T=

Peers=

V. ES=(total interest income/total earnings assets)-(total interest expense/total interest-bearing liabilities)

M&T=.16%

Peers=3.19%

Return on equity tells common shareholders how effectually their money is being employed. Comparing percentages for current and prior periods reveals trends, and comparison with industry composites reveals how well a company is holding its own against its competitors. As for M&T, the ROE is low compared to its peers. Although the ROE is low, M&T is still operating efficient.

* The net profit margin(NPM)

M&T =-250.10%

Peers=-10.80%

NPM shows how much a company makes (before interest and taxes) on each dollar of sales. M&T makes $-2.50 for every dollar of sales. M&T isn’t as efficient as its competitors.

* The degree of asset utilization (AU)

M&T= .53%

Peers= 3.15%

AU measures the speed at which a business is able to turn assets into sales and hence cash (what the asset is capable of producing and what it actually produces). M&T isn’t as leveraged as its competitors.

* The equity multiplier (EM)

M&T=622.17%

Peers= 911.13%

The equity multiplier examines how a company uses debt to finance its assets. M&T is less risky than its competitors, but the equity multiplier is rather high. A high equity multiplier indicates higher financial leverage, which means the company is relying more on debt to finance its assets. For every $622.17 they lend out only $1 is real money....