Harvard Business School Case Solution

CEO Assignment #1 Bank Analysis – Decomposition of ROE FIN 420 – Bank Management Summary: Utilizing data contained within the Uniform Bank Performance Report (UBPR) of a local bank, decompose the company’s 12/31/11 financial performance as well as information for its peer group. Analyze the results. Available Banks:Bank of Holland Grand River Bank Mercantile Bank Macatawa Bank Format:Part #1 – Obtaining Information †¢ Obtain bank financial information from UBPR †¢ Complete decomp Excel worksheet †¢ Compare bank financial information to peer group †¢ Calculate ROA, ROE, and several bank ratios based on dataPart #2 – Analyzing Information †¢ What were the three largest differences between your Bank and its peer group in the core ROE decomposition analysis? †¢ How did the drivers (#1-3) help to understand the ROE decomposition? †¢ Are there any drivers that could provide a better understanding of the Bank’s per formance? †¢ What was the largest surprise about your Bank in relation to its performance and comparison to peer group? †¢ Identify three strategic initiatives that the Bank CEO could implement to improve performance? Identify the benefits of such initiatives but also the related costs to implement these initiatives.Sources:https://cdr. ffiec. gov/public/ManageFacsimiles. aspx 1) Select â€Å"Uniform Bank Performance Report† under the â€Å"Report† drop down menu 2) Type the name of the bank you select under â€Å"Institution Name† Hand in:1) ROE Decomposition Excel Worksheet 2) Memo to the CEO of the Bank you analyzed addressing the questions contained in part #2 above. Memo is to be no longer than two pages (0. 75 inch margins, font 11, Times New Roman). All charts/tables should be included in appendices at the end of the two page memo. DUE DATE: September 24, 2012 (beginning of class)* *Late assignments will be penalized 10% per day