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LIQUIDITY RATIO
1. Loan to Asset Ratio

Loan to Asset Ratio

76.63% 76.70%

77.00% 74.65%
76.00%
75.00%
74.00%
73.00%
2016 2017 2018

Loan to asset ratio measures the total outstanding loans as a proportion of the total
assets owned by a bank. It can compare the leverage of one bank with the other bank in which
can reflect how stable the bank is in term of financial. This ratio indicates that the higher the ratio,

the lower the liquidity and the higher the credit risk will be. Based on the graph above, it increases
slightly from 76.63% in 2016 to 76.7% in 2017. In 2018, it drops drastically to 74.65% which means

that 74.65% of its assets are financed by creditors, and 25.35% are financed by owners
(shareholders) equity. Public Bank’s loan to asset ratio is considered good as it is below 1 because
translates to the fact that a greater portion of its assets is funded by equity. Loan to asset ratio can

be improved by issuing new or additional shares to increase Public Bank’s cash flow. The cash
can be used to cover current obligations and lower the debt burden in return.

CAPITAL ADEQUACY RATIO

1. Risk Weighted Capital Ratio

Risk Weighted Capital Ratio

12.70%

13.00% 12.10%
12.50% 11.70%
12.00%
11.50%
11.00%
2016 2017 2018

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