Banking · Branch Profitability
Evaluate the statement: 'Profitability Analysis of Bank Branches should include an assessment of the branch's CASA ratio.'
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1True. But only for calculating the branch's Return on Equity (ROE).
- 2False. Only the total volume of loans matters for Branch Profitability.
- 3True. The CASA ratio directly reflects the branch's success in mobilizing low-cost funds, which is a major determinant of its Net Interest Margin (NIM) and Profitability.✓
- 4False. The CASA ratio only affects the Head Office's Net Profit.
Correct answer
True. The CASA ratio directly reflects the branch's success in mobilizing low-cost funds, which is a major determinant of its Net Interest Margin (NIM) and Profitability.
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