Bank Analysis

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Manufacturers and Traders Trust Company

Bank Summary

February 25, 2010

Financial Ratios

I. ROE= Net income/Shareholder’s equity



II. ROA=Net income/Total assets



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

Average Earnings assets



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



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



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%


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)


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....