Wednesday, January 11, 2012

[ vuZs.net ] FINI619 Ratios

Friends, 

This year, VU has added a new ratio in ratio analysis. which are as follows;
Spread Ratios
Gross Spread Ratio

What is Spread ratio?

Spread income

Also called margin income, the difference between income and cost. For a depository institution, the difference between the assets it invests in (loans and securities) and the cost of its funds (deposits and other sources). 

Please read more about spread and spread ratios on following link.


Here are the formulas to calculate spread ratios for banks.

Spread Ratio

Spread Ratio = Interest Earned / Interest Expense

Gross  Spread Ratio

Gross Spread = (Net Markup Income/Gross Income)


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Regards, 
Misbah Yousuf

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