Evaluation of SunTrust Bank Case Study Example | Topics and Well Written Essays - 1250 words

Evaluation of SunTrust Bank - Case meditate ExampleThis may be attributed to negative financial drivers in the market such as ominous economic cycles leading to lower Returns on equity. However, it can be scrutinized that Returns on Equity were higher in 2011 as compared to 2010. This is a positive indication that the management was performing considerably well. The positive drivers for higher returns on equity could be attributed to the ability of the attach to to employ investors capital to make more returns. The lay on the line analysis section indicates that the ability of the company to set off short term debt was compromised in 2011 by higher loans commitments and subsequent losses. However, the total real estate loans to equity ratio were intimately lower in 2011 than all the previous years. This indicates that the company strength to offset printing long-term debts has been increasing progressively. Additionally, the liquidity ratio for the year 2011 was 8.11%, while i n 2010 the ratio stands at 2.61%. This means that the position Unit Trusty Company to offset shorter debts was substantially higher in 2011 than in 2010. Connectively, the total risk based on capital was substantially higher in 2011 as compared to the rest of the periods. ... he financial statements of Sun Trust Bank identify a total asset of one hundred and seventy three million dollars as at 31st celestial latitude 2012(SunTrust Para-1). Additionally, the company was reported to be one of the leading holding companies with numerous subsidiaries in different parts of the world (SunTrust Para-2). In above connection, the company had one thousand, six hundred sell subsidiaries located in Georgia, Florida, North Carolina, Tennessee, West Virginia to name just but a few (SunTrust Para-4). The company fork outs variety of services to its clients, some of the services provided include brokerage, investiment management, insurance and lingoing such online are banking (SunTrust Para-4). Therefore, this report aims to provide comprehensive analysis of Sun Trust Bank financial ratios in order to determine its strengths, weaknesses, opportunities and threats. The report will take into consideration the most current ratios for 2011 and compares them with those of the previous years ie2006, 2007, 2008, 2009, and 2010. An Evaluation of the banks Profitability Below is a small table indicating profitability ratios for the five periods Years December 2006 December 2008 December 2009 December 2010 December 2011 Profitability Ratios(ROE) 11.30% 4.98% -8.41% -0.18% 3.30% Profitability Ratios(ROA) 1.19% 0.57% -0.93% 0.02% 0.85% Net Interest Margin 3.03% 3.21% 3.03% 3.39% 3.54% strength Ratios 55.81% 65.64% 80.29% 69% 69.15% Source Author Profitability ratio Analysis Based on the figures above be scrutinized that the returns on equity ratio for 2006 and 2008 were 11.30% and 4.98% higher than in 2011 which stand at 3.30%. This indicates that in 2006 and 2008, equity subscribe r line holders of Unit Trust Company were able to obtain higher returns on the investment than in