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COMMENT AND SUGGESTION

PROFITABILTY RATIO

1. Return on Asset

Return on Asset

2.38%
3.00% 1.74% 1.37%
2.00%
1.00%
0.00%
2016 2017 2018
2016 2017 2018

Return on Assets (ROA) is a standard of how good a company utilizes its assets, by
determining how profitable a company is respective to its total assets. Company with higher ROA

reflects that it has more asset efficiency. Based on the chart above, there is a decrease in the
ROA of Public Bank. The ROA is 2.38%, 1.74% and 1.37% in 2016, 2017 and 2018 respectively.
This indicates how ineffective Public Bank is in converting the money it invests into net income.

The decrease in the return shows that the bank is less productive and has less efficient
management in utilizing its economic resources. The primary way for Public Bank to increase

ROA is through business deposit account in merchant services. Public Bank can also enhance
the ROA through income fee on payroll services, point of sale systems and gateway revenue.

2. Return on Equity

Return on Equity

24.25%
40.00% 16.76% 12.90%

20.00%

0.00%
2016 2017 2018

2016 2017 2018

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