Return on AssetsROA

ROA is the broadest profitability measure for a bank because almost all of a bank's resources sit on the balance sheet as loans, investments and liquid assets. It is calculated as net profit after tax divided by average total assets and expressed as a percentage. Using average assets (opening plus closing divided by two) avoids distortion when the balance sheet grows quickly during the year.

Banks are highly leveraged, so their ROA is naturally low compared with manufacturing firms; a figure between roughly one and two percent is usually treated as healthy for a commercial bank. ROA links to ROE through the equity multiplier: ROE = ROA × (Total assets / Equity). A bank can therefore show a high ROE simply by using more leverage, which is why analysts and supervisors look at ROA alongside ROE.

ROA is the 'E' (earnings) element examined in CAMELS-style supervisory ratings, together with net interest margin and the cost-to-income ratio.

बैंकको अधिकांश स्रोत कर्जा, लगानी र तरल सम्पत्तिका रूपमा वासलातमा रहने भएकाले सम्पत्तिमा प्रतिफल बैंकको नाफा मापनको व्यापक सूचक हो। करपछिको खुद नाफालाई औसत कुल सम्पत्तिले भाग गरी प्रतिशतमा व्यक्त गरिन्छ।

बैंक उच्च लिभरेजमा चल्ने भएकाले यसको ROA उत्पादनमूलक कम्पनीको भन्दा कम हुन्छ। ROE = ROA × (कुल सम्पत्ति / स्वपुँजी) हुने भएकाले बढी ऋण प्रयोग गरेर पनि ROE बढाउन सकिन्छ, त्यसैले ROA र ROE सँगै हेरिन्छ। CAMELS मूल्याङ्कनको आम्दानी (Earnings) पक्षमा यो प्रमुख सूचक हो।