Bb&T Bank Analysis

7064 WordsMay 29, 201229 Pages
[pic] BB&T BANK ANALYSIS REPORT FINA 280 FINANCIAL INSTITUTION MANAGEMENT & MODELING William C. Handorf, Ph.D. June 28, 2008 Washington, DC Content 1. INTRODUCTION ………………………………………………..…………………3 2. BB&T ……………………….……………………………………………………….4 3. US ECONOMIC OVERVIEW ……………………………………………………12 4. BB&T Bank …………...……………………………………………………………14 5. Conclusion…………………………………………………………………………..41 6. Questions to Management………………………………………………………….42 1. INTRODUCTION The purpose of this report is to analyze the financial operations and financial conditions of BB&T Bank by evaluating financial, economic and market information available for the period from 2000 to 2008. This paper attempts to address key strengths and…show more content…
In this section we’ll briefly discuss the CAMELS analysis of the holding company. 2.1.1 Capital & Risk Index The risk index of the bank indicates that there is probability of 0.001% that the Company will below capital, which is higher than the peer group’s indicator of 0.0005%. BB&T’s ROA has been larger but also more volatile compared to the peer group. | |BB&T |Peer Group | |Description |Indicator for Dec 31,2002 - Mar 31,2008 |Indicator for Dec 31,2002 - Mar | | | |31,2008 | |Tier One Leverage Capital |6.97 |7.95 | |Mean ROA |1.5386 |1.2323 | |Sigma ROA |0.1553 |0.1371 | |Risk Index |22.5924018 |30.50547046 | |Probability of going under 5% |0.000979592 |0.000537297 |
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