Financial analysis of financial institutions in an evolving environment
This article was originally published as Collier, HW, McGowan, CB and Muhammad, J, Financial analysis of financial institutions in an evolving environment, Proceedings of the Meeting of the Decision Sciences Institute, Southwest Region, Oklahama City, March 2006, 105-114.
This paper presents a model for the financial analysis of a bank based on the DuPont system of financial analysis. The bank return on equity is decomposed into net profit margin, total asset turnover and the equity multiplier. This model is applied to AFFIN Bank Malaysia of which is one of the largest banks in Malaysia for the period from 1999 to 2005. The DuPont system of financial analysis shows the impact of the Asian financial crisis on the financial performance of AFFIN Bank that affected the region in 1997-98. The impact of the financial crisis on AFFIN Bank share prices is clearly visible.
H. W. Collier, C. B. McGowan, and J. Muhammad. "Financial analysis of financial institutions in an evolving environment" Faculty of Commerce - Papers.. Mar. 2006.
Available at: http://works.bepress.com/hcollier/11