INTERPRETATION OF INCOME STATEMENT

Over the 3 year period, the bank experienced a change in Net Interest
Income at a decreasing rate. This reduced marginally from 64.64% in 2013 to
62.39% in 2014 and sharply reduced to 49.51% in 2015.

The banks Operating Income also reduced from 71.92% in 2014 to 64.98%
in 2015. On the other hand, Other Incomes for the bank increased from
28.08% to 35.02% in 2015.

Operating expense was 65.99% in 2013 but it increased to 92.94% in 2014

and eventually reduced to 66.15%. From the analysis, the bank incurred
more costs in operations in 2014 as compared to the other years under
review.

The bank realized 34% Profit before Tax in 2013 but this reduced drastically
to 7.06% and eventually reduced again to 6.46%. This reduction can be
further attributed to the increased costs in operations and impairment losses
in loans and advances.

The bank paid more income taxes in 2013 and these expenses reduced by
7% in the subsequent years.

INTERPRETATION OF BALANCE SHEET

The banks cash balances with BOG and other banks were on the rise
between 2013 and 2015. The bank recorded a 5% increase in assets as at
2015.

Financial investments for the banks reduced from 40.51 % in 2013 to 10.70%
depicting 30% reduction over the 3 year review. Also, Loans and advances
given to customers increase by 4% between 2013 and 2014 but there was a
marginal reduction of 0.13% in 2015.

The banks investment in Property Plant and Machinery was at 2.60% in

2013. This eventually dropped to 1.67% in 2015. Investment in other assets
hit its peak of 9.26% in 2014 and diminished to 3.39% in 2015 signifying a
reduction of over 6%. Intangible assets reduced at a constant rate from 2013
to 2015.

The bank was able to increase mobilized customer deposits from 37.77% in
2013 to 61.41% in 2015 depicting almost 100% over the course of 2 years.
This was an impressive performance since they can trade and make profits
with such funds.

The banks liabilities in terms of what they owed to other banks reduced from
28.56% in 2013 to 24.12% in 2014 and finally dropped to 15.66%. Interest
payable and other liabilities also had the same effect. They reduced from
4.41% in 2013 to 2.77% in 2015.

Stated Capital for the bank also reduced from24.47% in 2013 to 17.17% in
2015. The statutory reserve fund also exhibited the same trait. It reduced
from 3.10% in 2013 to 2.53% in 2015. Income surplus account was greater in
2013 than 2014 and 2015. The bank was able to pay shareholders returns in
2015 but it reduced in 2014. In effect, there was poor performance in terms
of dividend to shareholders in 2015.

1. INCOME STATEMENT

NARRATIONS 2015 2014 2013

Net Interest 49.51% 62.39% 64.64%

Income
Fees and 15.46% 9.54% 5.80%
Commission
Operating 64.98% 71.92% 70.44%
Income
Other Income 35.02% 28.08% 29.56%

Operating 66.15% 92.94% 65.99%

Expense
Impairment 27.40% - -
Loss
Profit Before 6.46% 7.06% 34%
Tax
Income Tax 1.79% 1.81% 8.80%
Expense
National Fiscal 0.32% 0.35% 1.75%
Stabilization
Levy
Profit For The 4.34% 4.90% 23.46
Year
 2. BALANCE SHEEET

NARRATIONS 2015 2014 2013

ASSETS

Cash Balances 11.89% 6.69% 6.58%

with BOG
Financial 10.70% 21.73% 40.51%
Investments
Due from the 2.79% 3.10% 3.98%
other banks and
financial
institutions
Equity 2.79% 3.10% 3.98%
Investments
Loans and 9.42% 9.55% 5.58%
Advances to the
Customer
Other Assets 3.39% 9.26% 2.37%

Property, Plant 1.67% 2.50% 2.60%

and Equipment
Intangible Assets 0.18% 0.27% 0.63%

Current Income 0.61% 0.22% -

Tax Asset

LIABILITIES

Customer 61.41% 53.15% 37.77%

Deposits
Due to other 15.66% 24.12% 28.56%
banks
Interest Payable 2.77% 0.56% 4.41%
and Other
Liability
Current Income - - 0.42%
Tax Payable
Deferred Income 0.03% 0.08% 0.15%
Tax
EQUITY

Stated Capital 17.17% 19.10% 24.47%

Statutory 2.53% 2.59% 3.10%

Reserve Fund
Regulatory 0.46% 0.17% 0.42%
Credit Risk
Reserve
Other Reserve 0.06% 0.10% 0.07%

Income Surplus 0.04% 0.32% 0.78%

Account