This page provides definitions of line items and ratios specific to the Banking model. See the Industrial Model for line items common to all models.
Income Statement Items
Int Paid: Interest Paid
Interest paid, particularly on deposits. This is not comparable to Interest Paid for industrial companies.
Int Recd: Interest Received
Interest received, particularly on advances. This is sometimes seen as the equivalent of Turnover for industrial companies.
Ret Splus Yr: Retained Surplus for the Year
ATTRIBUTABLE INCOME less TRANSFERS TO RESERVES less DISTRIBUTIONS.
Balance Sheet Items
ConvPrefs&Debs: Convertible preference shares and debentures
Distinction is made between convertible issues and non-convertible issues.
Dep & OtherAcc: Deposits and other accounts
Deposits and other interest bearing monies taken in by the bank.
Liabilities: All liabilities of the bank, including current, long term, deposits, and insurance funds.
Inv & Trad Sec: Investment and trading securities, representing the short term, more liquid investments of the bank.
Adv & Loans: Advances and loans lent by the bank.
ST Dep & Cash: : Short term deposits and cash
The most liquid funds in the bank, as distinguished from investment and trading securities. These earn little or no interest.
Banking Model Ratios
Interest Mgn: Interest Margin
(INTEREST RECEIVED - INTEREST PAID) / TOTAL ASSETS
Shows the profitability of the core operations of the bank.
LiqFnds:Deposit: Liquid Funds: Deposits
(CASH AND SHORT-TERM FUNDS) / (DEPOSITS, ACCEPTANCES, AND OTHER ACCOUNTS)
Shows the degree to which liquid reserves can absorb sudden large withdrawals. Also gives an indication of the Statutory Reserve.
Cost to Income:
(OPERATING EXPENSES / OPERATING INCOME)
Int Rec:Int Pd: Ratio of Interest Received to Interest Paid
(INTEREST RECEIVED) / (INTEREST PAID)
Shows the degree to which the basic business of the bank – lending and borrowing money – is making a profit.