Statement of Hypothesis: Efficiency and profitability of banking firms are commonly not

The banking industry is highly competitive. The financial services industry has been around for hundreds of years. Wells Fargo has many competitors itself. In this paper, I will be doing a comparison of Wells Fargo & Company (WFC) and one of its biggest competitors, Bank of America Corporation (BAC). By analyzing looking at the financial ratios, one can see whether the company is successful or not. In the following, I will try to analyze and make a comparison of Wells Fargo’s and Bank of America’s recent performance in growth, income, and efficiency. Using a these criteria, I will determine which bank is the better buy according my analysis. My analysis of WFC & BAC’s performances

Key Words - Bancassurance, Customer Satisfaction, Performance Parameters, Public Sector Banks and Private Sector Banks.

Making an investment decision is never easy, and should be done on the basis of careful evaluation of the company, its underlying conditions, its finances, and the company's current trading conditions on the secondary market. The Royal Bank is a leading Canadian bank, but it has struggled to maintain revenues and profits in the past five years, experiencing significant volatility. As with all banks, RBC's performance is strongly correlated to the state of the economy in general, something that will need to be taken into account in understanding the firm's financial performance. This paper will evaluate the Royal Bank in terms of its income statement, balance sheet, its qualitative condition and its current stock price. All figures are in CAD unless otherwise noted.

COMPARATIVE ANALYSIS OF FINANCIAL PERFORMANCE OF PUBLIC AND PRIVATE BANKS [IN THE CASE OF SELECTED PRIVATE AND PUBLIC BANKS]

The purpose of this report is comprehensive quantitative analysis for the financial performance of Barclays Bank. Quantitative analysis is an important method of looking beyond the numbers and understanding the stories they tell. It is quantitative analysis that gives way to qualitative analysis and allows us to gauge the running of a business better. Quantitative analysis is key towards improving our understanding of the relationships that may exist among key financial variables or key factors influencing the performance of a firm. The application of quantitative analysis towards business performance is a key method of identifying problems that may hinder the growth of the business and tackle their root cause.

The papers start off with giving an explanation of the Economic theory. It goes on to make the point that the theory really has not come yet to agree on the insinuations of augmented rivalry for banking reliability, and, more precisely, bank capital ratios. The author goes on to bring in an example, which makes the suggestion that increased competition reduces banks' soundness. The document explores the chief mechanisms that are talked about in the literature. The literature makes the point of mentioning that the bank managers have an inducement to take on extreme jeopardies to profit stockholders at the expenditure of investors. The document also brings in another perspective that had a contrast from what Camino and Matutes (2002) mentioned. Both of these made the point prove that

In the research paper of Schoors et al. (2010), they prefer the classic production approach because in the intermediation approach, the deposits are neglected as an import output. In order to follow our own rationale, we prefer to apply the classic production approach since deposits are neglected in the intermediation approach and our dataset consists only out of deposit banks. Also Ferrier and Lovell (1990) argue using the production approach if you are measuring the cost efficiency of banks because it takes only the operating costs of banking into account. On the other hand, the intermediation approach is preferable if you want to investigate the viability of banks since it is concerned with the overall costs of banking. But since we want to conduct a comprehensive and thorough research on this subject, we will also include a stochastic frontier model based on the intermediation approach inputs and outputs in our robustness checks

Due to the fact that banks are highly leveraged organizations an ROA above 1% indicates substantial profits. However, U.S. Bancorp’s ROA has decreased .06%, suggesting management has become less efficient and should focus on increasing efficiency. In comparison to Bank of Americas ROA of .74%, U.S. Bancorp demonstrates significantly better efficiency at turning investments into net income. In addition, ROE demonstrates how much profit a company is able to generate with funds invested by shareholders, by illustrating whether shareholders return on equity is an attractive investment decision (Keown et al., 2014). Over the past two years U.S. Bancorp’s ability to create profit from shareholder funds has decreased, in 2015 their ROE was 12.67% whereas, in 2014 it was 13.38%. If their ROE keeps decreasing the organization may need to find alternative investments in order to provide greater return to their shareholders. On contrary, U.S. Bancorp shows a greater ability to increase shareholder returns than Bank of America who only has an ROE of 6.20%. Overall when analyzing U.S. Bancorp’s profitability with ROA and ROE, they have outperformed their competitor, however, both measurements had decreased between 2014 and 2015, suggesting a change of strategy may be needed.

Berger (1995) takes one further than the standard efficiency approach. In order to further differentiate between the SCP and efficiency hypothesis, he direct include measures of both X-efficiency and scale efficiency as additional variable in the vector. He derives both efficiency measures from the estimation of a trans-log cost function. By assuming X-efficiency will persist over time, the X-efficiency is separated from random noise. The X-efficiency equals the ratio of predicted costs for the most efficient cost in the sample to bank’s predicted costs for the given vectors of outputs and inputs. In addition, He also computes scale efficiencies based on the trans-log cost function by taking the ratio of minimum predicted costs to average predicted average cost for any individual bank. By estimates

As previously said in the introduction, this paper intends to survey the latest performance of banks belong to the financial industry. The samples are selected by the nation’s economic place in the world, this method can be better explained by the formula below, the GDP figure is from the World Bank’s 2015 GDP ranking statistics.

A wide range of theoretical literature explores the relationships between banks and economic growth. In an ideal world researchers would construct cross-country variables that would describe banks profitability, corporate governance in place, resource mobilization and allocation and risk management. Unfortunately until now no standardized measures for a broad spectrum of countries have been developed. That is the main reason why most of the researchers today uses variables that describe the over-all size of the banking sector by which they proxy for the „financial depth“ (Goldsmith, 1969; Mckinnon 1973).

The main goal of this section is to provide a review on literature and related models to the research problem. Generally, there are numerous empirical analyses by international scholars about assessing and measuring competitiveness of commercial banks. However, there is no any study related to this problem in Vietnam.

While the global economic condition is still recovering from crisis, many argue that the process is uneven and susceptible to shock (Bank Indonesia, 2015). The recovery process tends to slow down as there is weakened commodity prices and foreign investment, and these factors are inevitably affecting the growth rate of Indonesia. GDP growth is falling from 6.3% in 2007 to a forecasted growth rate of 5.5% in 2015 (Asian Development Bank, 2015). In this case, as a financial intermediary, banks have a strategic role in supporting the national economic growth. It is believed that efficient banking system is essential for the country development. Therefore, a study looking at the efficiency and profitability of Indonesian banks is substantial as it will signal the growth of the Indonesian economy in the future.

Islamic banks have a better N.I/ total interest Income by .2063 points, this advantage shows that Islamic banks are more efficient in making money through transactions. Though the advantage on return on assets falls by around one third to only .0120 points, but Islamic banks in regimes still have an advantage over conventional banks in maximizing the utilization of assets. Return on sales for post-crisis period are also greater for Islamic banks, the difference of almost 5.2% shows that Islamic banks have better profitability than conventional banks. Islamic banks are also 24.41% more cost efficient than conventional banks during post crisis period in regimes.

This paper investigates the efficiency of public and private sector banks in Peshawar. For this purpose, we have taken the secondary data from income statement, balance sheet and other financial reports of banks for the year for the year 2010, 2011 and 2012.We have used ratio analysis technique on financial statements of the two banks to find out the efficiency that which sector banks is more efficient. Both banks are considered very big and important financial institution for providing services to government employee and general publics. The all ratios result reveals that ABL is more efficient than the NBP and on the basis of these findings it accepts the hypothesis that “The private sector banks are more efficient than public sector banks in Peshawar” and reject the hypothesis “The public sector banks are more efficient than private sector banks in Peshawar”. we realize in this study that the private sector banks in Peshawar have better management and control over it as compare to public sectors bank. we suggest that Investors should invest in private sector banks rather t public sector banks in Peshawar and Recommended some good suggestions for the betterment of Public sectors banks.