Measuring Performance of Banks in Commercial Banking and Finance

Running head: COMMERCIAL BANKING AND FINANCE
Commercial banking and finance
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1COMMERCIAL BANKING AND FINANCE
Table of Contents
Part 2 – Measuring performance of banks.................................................................................2
Presentation of data................................................................................................................2
Analysis of bank’s performance.............................................................................................2
Reference....................................................................................................................................5

2COMMERCIAL BANKING AND FINANCE
Part 2 – Measuring performance of banks
Presentation of data
Analysis of bank’s performance
From the above table it can be identified that the interest income of Commonwealth
bank is in reducing trend and in the same way the interest expenses are also in reducing trend.
As the interest expenses are in reducing trend, net interest income of the bank is in increasing
trend (Commbank.com.au 2018). On the other hand, interest income as well as interest
expenses both for Westpac bank are in reducing trend. However, as the interest expenses are
in reducing trend, net interest income of the bank is in increasing trend (Westpac.com.au
2018). Loan provision loss is the amount kept aside as the allowance for the purpose of loan
payments and uncollected loans. This provision is used for covering various factors related to
potential loan losses that include customer defaults, bad loans and renegotiated loan terms
that carry lower payments as compared to previous estimates. However, from the perspective
of balance sheet the loan loss will be considered as a loss for an asset. Conversely, fro
operating perspective, owing to the provision for loan loss cash flow is available. It ensures