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The following ratios are calculated to evaluate the capital adequacy of RBS (Refer to Appendix 1 for the calculation of ratios) (Bhayani, 2006)
From the above figure it is evident that the CAR of RBS has been fluctuating over the years. The highest CAR has been 15% (in 2008 and 2012). The capital resources of RBS comprise Tier 1 and Tier 2. Thus, it can be inferred that 15% of capital (Tiers) of RBS is needed for protecting its risk weighted assets in 2012 ( Hilbers, Krueger and Moretti, 2000).
From the above figure it can analysed that the debt equity ratio of the bank has decreased over the years from 2008 to 2012. It can be noticed that RBS has been aggressive in 2008 regarding financing. However, the decrease in the debt equity ratio reflects the fact that RBS has become more conservative in financing its capital through debt (Grier, 2007).
The asset quality is a vital factor for gauging the strength of a bank (Pastory and Mutaju, 2013). The main aim is to ensure the component of non-performing asset as percentage of total asset (Refer to Appendix 2 for the calculation of ratios).
The ratio gauges the efficiency of the bank for assessing its credit risk and debt recovery (Wagner and Knaup, 2008). NNPA refers to the loans that are about to become default once the borrower fails to make the interest payment (Godlewski, 2003).
From the above figure it is evident that the net performing asset has decreased over the year which means the numbers of customers who are not able to pay the interest have decreased. This reflects the fact that RBS has been performing well over the 5 years (Hoshi, Kashyap. and Scharfstein, 2009).
From the above figure it is evident that the bank has concentrated in investing their assets over the years so that they can earn profitable return out of it. However, according to the graph, the total investment has reduced over the years. The decrease in total assets may be predicted as the increase in liabilities for
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The case study’s company- VICA - “Enjoy the difference” Company made various approaches and forecasts in several rounds. Each round will be scrutinized in an attempt to focus on the forecasts. In order to fit in the market, the company made an initiative of assessing the target customers, with the aim of acquiring maximum profits from the business initiative.
CORPORATE AND GLOBAL STRATEGY Table of Contents Executive Summary 3 Introduction 4 Business Strategy 7 Internal Analysis 7 External Analysis 12 Evaluation of Strategy 16 Conclusion & Recommendations 17 References 18 Executive Summary Business strategy is often referred to as a process and continues along with the business.
Barclays Bank in India Management Report Name of the Writer Name of the Institution Barclays Bank in India I. Introduction No modern business today can exist in a vacuum. It has to face the internal and external forces that abound in the business environment.
Considering these factors foreign banks in the country have largely focused on the high net worth clients however, some banks like Barclays have deliberately chosen the strategy of catering to the low income level segment of the country.. It is also critical to understand that India’s banking sector is still heavily regulated as throughout its history, India’s banking system remained closed for the foreign banks.
Citibank has been one of the pioneers of Internet Banking from a very early stage of internet revolution. Citibank management was quick to judge the future of business and banking lay in the internet boom and wanted to fully capitalize itself on it. The report will be discussing the situational analysis keeping in mind the theories of PEST and SWOT analysis, the industry analysis like the porter’s five forces.
In the United States, manufacturing costs are a chief concern due to the low labor costs that foreign competitors enjoy. These costs have caused many companies to seek foreign avenues and alternatives. By following a comprehensive evaluation process, manufacturers can develop a strategy to compete with low-cost global competition and, in turn, offer customers quality products at a competitive price.
The transformation process requires lot of people involvement and techniques that will provide the requirements of the clients (MIT Sloan School of Management, 2010).
Operations management is an integral part of
The first weakness of the bank was the short-term risky planning of investment. RBS always invested in the smaller areas, in the smaller financial ponds, which were more uncertain and had a risk to catch up. The uncertainty of the smaller segments caught the bank up on
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