Compute the following ratios : (iii) Efficiency Ratio: Non-Interest Expenses to Net Total Income Ratio.

CS Professional · Banking - Law and Practice · PYQS · December 2018
Compute the following ratios : (iii) Efficiency Ratio: Non-Interest Expenses to Net Total Income Ratio.

Answer & Explanation:

(iii) Efficiency Ratio: Non - Interest Expenses/ Net Total Income 2017 2016 611.51 x 100 1246.88 561.34 x 100 1161.70 = 49.04% = 48.32% Net Total Income = Net Interest Income (Interest Income- Interest Expenses) + Other Income 2017 : 2118.51-1263.15+391.52 = 1246.88 2016 : 1760.12-1037.45+439.03 = 1161.70

Topics: Financial Analysis

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