Page 8 - FIN435 RHB vs BPMB

RHB Internal and External Comment Evaluation
Profitability Ratio
Return On Assets

Return on Assets Graph
0.95%
1.00% 0.85%
0.80% 0.71%

0.60%
0.40%

0.20%
0.00%
Category 1

2018 2017 2016

It shows how capable the management of the bank has been in converting the institution’s
assets into net earnings. The trend of the graph that we can see it start from 0.71% in year
2016, 0.85% in year 2017 and 0.95% in year 2018. An increasing of ROA indicate more
profitability. Overall, Bank RHB record a slight increased for 3 consecutive years from 2016
to 2018 and should remain the trend.

Return on equity

Return On Equity Graph

4.00%
3.05%
3.00% 2.76%
2.22%
2.00%
1.00%

0.00%
Category 1

2018 2017 2016

Return On Equity (ROE) measures the rate return of flowing of income to the bank
shareholders.. Based on data above, the trend analysis is going upward from 7.75% in 2016,
8.44% in 2017 and 9.8% in 2018 consecutively. This trend was influenced by Return on
Asset (ROA) data which also indicate downward trend. . The company has to keep doing
this good trend to increase the ration of return on equity.

8