6

NBL Ratio (including of lBL)

5
4
Ratio

3
2
1
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

The nonperforming loan ratio, better known as the NPL ratio, is the ratio of the amount of
nonperforming loans in a bank's loan portfolio to the total amount of outstanding loans the bank
holds. The NPL ratio measures the effectiveness of a bank in receiving repayments on its loans.
According to the data above the NPL including the IBL receivable ratios in the first four years are
decreasing from 5.1 to 3.9, the next four years it stays at its given ratio though there is still changes in
the year 2013 and 2014 and the last four years in the data are slowly increasing but not higher than the
ratio in 2008. This shows that compared in the 2008 ratio, 2019 has a lower risk of loss and can recover
loan amounts which can attract more potential investors in investing to those institution that have a
healthy books of accounts.

6 NBL Ratio (excluding of lBL)

5
4
Ratio

3
2
1
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

NPL ratio is the ratio of the amount of nonperforming loans in a bank's loan portfolio to the total
amount of outstanding loans the bank holds. The NPL ratio measures the effectiveness of a bank in
receiving repayments on its loans. The data in the NPL ratio excluding the IBL shows that in the year
2008 to 2015 the ratio increases from 5.2 to 5.5. The ratio is not continuously increasing due to some
factors that can affect to its growth. In the following years the ratio decreases up to 4.7 by the end of
2019. This shows that the banks are effectively receiving repayments on its loans because the ratio
keeps on decreasing in some years. Having a lower NPL ratio means they possess a lower risk and they
could recover owed loan amounts compared to the recent years.
 200
30 CashLiquid
and dueAssets
from banks to Bills
to Bills Payable
Payable
25
150
20
Ratio
Ratio
100
15
10
50
5
00
2008
2008 2009 2010
2009 2010 2011
2011 2012
2012 2013
2013 2014
2014 2015
2015 2016
2016 2017
2017 2018
2018 2019
2019

5
NPA to Gross Assets
4
3
Ratio

2
1
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Nonperforming asset (NPA) refers to a classification for loans or advances that are in

default or in arrears. A loan is in arrears when principal or interest payments are late or missed. A loan is
in default when the lender considers the loan agreement to be broken and the debtor is unable to meet
his obligations. In the data given, the ratios of NPA to gross assets in the year 2008 to 2019 are
increasing a bit from 3.6 to 4. In 2013 there is a decrease in the ratio by 2.4 but in the following years it
slowly increases up to 4. The higher amount of nonperforming assets to gross assets weaker the
bank's revenue stream. In the short term, many banks have the ability to ride out an increase in
nonperforming assets; they might have strong reserves or other capital that can be used to offset the
losses.

Cash and due from banks are consists of vault cash, deposits held at Federal Reserve Banks
(Fed), deposits held at other financial institutions, and checks in the process of collection. These
accounts generally facilitate check clearing and customers' currency withdrawals and serve to meet legal
reserve requirements. Their distinguishing feature is that they do not earn interest, although balances at
the Fed and other depository institutions can be used to obtain correspondent banking services. In the
data given, the cash and due from banks to bills payable ratio in the year 2008 to 2016 are increasing
with 20.3 to 27.3 but not continuously because of some factors. In the year 2016 to 2019 the ratio are
decreasing meaning there is a less funds and deposits held at other financial institution and this can
affect their banking performance services.

A liquid asset is any asset that is readily convertible into cash within a short period of time,
and which suffers no loss in value as a result of the conversion. Convertibility is assisted by the
presence of a large market in which there are many participants, and in which it is easy to transfer
ownership from the buyer to the seller. In the graph above, it shows that the liquid assets in the
bills payable stops in the year 2011. In the 2009 there is a ratio of 183 of liquid assets that may
result to loss in value. The year 2012 to 2019 has no data issued and this is possible if they engage
in investments. Some investment accounts are called cash equivalents because they can be liquidated
in a fairly short time span. Due to the higher risk imposed by low liquidity, these assets often command
higher returns. 

140 Loans (gross) to Bills Payable

120
100
80
Ratio

60
40
20
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

A loan is money, property, or other material goods given to another party in exchange for future
repayment of the loan value or principal amount, along with interest or finance charges. A loan may be
for a specific, one-time amount, or it can be available as an open-ended line of credit up to a specified
limit. The data above shows a continuous increase in ratio in the year 2008 to 2019. This means that the
bills payable are consist mostly of loans. The interest and fees from loans are a primary source of
revenue for many financial institutions, such as banks, as well as some retailers through the use of credit
facilities. These loans offer a way to grow the overall money supply in an economy, as well as open up
competition and expand business.
 60 Earning Assets Yield
50
40
Ratio

30
20
10
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Earning assets are income-producing investments that are owned, or held, by a business,
institution or individual. These assets also have a base value and the ability to produce additional
funds beyond the inherent value for the investment holder. This allows the investment holder to
maintain the assets as a source of earnings or sell the assets for a lump sum based on the inherent
value. The data above shows that there is a huge increase of earning assets yield in the 2008 to 2015.
This is often the result of good policies, such as ensuring that loans are appropriately priced, and
investments are properly managed, as well as the company’s ability to garner a larger share of the
market. The following years earning assets yield ratio had decrease to 23.7 but it slowly increases up to
2019. Financial institutions with a low yield on earnings assets are at an increased risk of insolvency,
which is the reason the YEA is of interest to regulators. A low ratio means that a company is providing
loans that do not perform well since the amount of interest from those loans is approaching the value of
the earning assets. Regulators may take this as an indicator that a company’s policies are creating a
scenario in which the company will not be able to cover losses, and could thus become insolvent.
 7
Funding Cost
6
5
4
Ratio

3
2
1
0
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Funding cost is a reference to the interest rate paid by financial institutions for the funds that
they use in their business. The cost of funds is one of the most important input costs for a financial
institution since a lower cost will end up generating better returns when the funds are used for short-
term and long-term loans to borrowers. In the data above, the funding cost ratio in the year 2008 to
2014 is continuously decreasing from 6.1 to 2.3; this means that financial institution generate better
returns and pays lesser amount of interest rate for the funds they accumulate for their business. The
following years the ratio of 2.3 raises up to 5.9 in the year of 2019. This increase in the ratio may result
to lower return of funds and higher amount of interest rate impose to be accumulated by businesses.
This will affect the operations strategy and services of other institutions.