This is a group project and the only thing I need to do is just the Part C. And the bank we choose is CHASE BANK.
Part A: PERFORMANCE ANALYSIS
Each team will select a bank to analyze.
Go to the bank’s website and locate the Investor Relations page. That page will include all the information for shareholders, investors, and others interested in the company’s stock and financial stability.
Make a short corporate profile summary.
Using the financial statements for the last 3-5 years and the financial ratios studied in class,analyze the bank’s return and risk. Conduct a return on equity decomposition analysis for the most recent year.
Identify at least one peer bank and compare your bank’s return and risk measures to those of peer bank(s). What are the implications of any significant differences? What recommendations would you make to adjust bank’s risk and return profile to improve its performance?
Part B: CORPORATE GOVERNANCE ANALYSIS
Using the information available on the Investor Relations page of the bank’s website (e.g., annual reports, proxy statements, governance highlights), analyze various corporate governance mechanisms (e.g., the structure of the board, board compensation, block ownership, committee composition, code of conduct). Give your opinion of the governance of the selected bank. Explain/document why you think so!
Analyze the compensation of the CEO in your selected bank. Do you think the CEO is overpaid? Do you believe CEOs are overpaid in general? Both “yes” and “no” answers are valid. What matters is your argument in support of the answer. I recommend reading the news and opinions of experts (e.g., WSJ) to better support your argument.
Part C: INTEREST RATE RISK MANAGEMENT
Review the bank’s annual reports for the last 3-5 years to collect information on the bank’s summary analysis of interest rate risk. How does your bank manage interest rate risk? Interpret the data provided in the annual reports and explain each method used to manage interest rate risk.