Page 9 - FIN435 RHB vs BPMB

Interest rate ratio

Interest Spread Graph
1.54% 1.53%
1.52%
1.50%
1.50%
1.48%
1.46%
1.46%
1.44%

1.42%
Category 1 2018 2017 2016

The net interest rate spread is the difference between the average yield that a financial
institution receives from loans along with other interest accruing activities and the average
rate it pays on deposits and borrowings. The interest rate ratio for 3 year shown that the ratio
is not static. Based on calculation that we make, the ratio for 2016 is 1.46% then its increase
to 1.53% in 2017. Unfortunately, in year 2018 the ratio decrease to 1.50%. this show that the
company profitability is not stable due to non-static ratio.

Liquidity Ratio = Loan To Asset

Loan To Asset Ratio Graph

70.00% 68.76%
68.11%
68.00%
66.00%
64.37%
64.00%
62.00%
Category 1

2018 2017 2016

Loan On Asset Ratio (LOA) is the ratio used to demonstrate the ability of banks to meet the
demand for loans by using the total assets owned by banks.. The trend of the graph is going
upward from the year 2016 to 2017 which is 64.37% to 68.76% and its going downward at
the year 2018 at 68.11%.. High liquidity risk may lead to low of liquidity such as not having
sufficient of cash and borrowing capacity to loan demand.

Capital Adequacy Ratio /Risk Weighted Capital Ratio
Capital Adequacy Ratio Graph

38.00% 37.01%

37.00%
36.00%
35.00% 34.17%
34.00% 33.38%
33.00%
32.00%
31.00%
Category 1
2018 2017 2016
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