How do the rankings compare for Net Income? Equity to Assets? Credit Quality? Liquidity? –
Is the ranking comparison important enough to discuss in your meeting?
Is your bank’s Margin % higher or lower? By how many basis points? If your margin is higher is it because your yield is higher or your cost is lower, or both? If your margin is lower is it because your yield is lower or your cost is higher, or both?
How does your asset mix compare? Which concentrations are higher? lower? the same?
How does the yield in each portfolio compare? Is it consistent with why your overall yield is higher? Lower? The same?
Is the difference in loan yield consistent with the difference in Credit Quality?
How does your funding mix compare? Which concentrations are higher? lower? the same?
How does the cost of each portfolio compare? Is it consistent with why your overall cost is higher? Lower? The same?
Is credit quality higher or lower? What is the difference in credit quality costing you?
Do you have a larger or smaller loan portfolio?
Could you have changed your credit quality? Did you want to? What would the trade-off have been to change it?
What is your liquidity level? Higher or lower?
Have you bought or sold securities? If so, has the specialist been used?
Is the difference in securities balance ($) consistent with the difference in Liquidity? Why or why not?
Did you or the other bank borrow money? What is the difference in amount & cost?
How does your net overnight investment/funding position compare?
What is your Equity to Asset Ratio? How does it compare?
Which bank is most Regulator friendly? (Consider Capital, Asset Quality and Liquidity).
Is there a risk/return trade-off evident when comparing your bank to another?
Is the trade-off only slight and not so obvious, or is it quite noticeable?
Is the difference part of a broader strategy on your part? Is the difference something you wanted to change? Is it something you could change?
If the other bank has a higher Net Income could you attain that level given more turns? If so, how? What increased risks would you take, if any? (i.e. how would such a move impact Equity to Assets, Credit Quality, and/or Liquidity?)
If the other bank ranks better in some other risk metric - would you like to change your bank to look more like that? if so in what ways? If not, why not?
