By Liana Avagyan

1
Comparative Analysisof Ardshininvest bank and
Converse bank

• By Liana Avagyan

2
Introduction

• Two methodologies
• Economic Value Added (EVA) methodology
• DuPont analysis

3
DuPont methodology
4
DuPont methodology(detailed comparison)

• NI/II ratio

5
DuPont methodology(detailed comparison)

• II/II-IE ratio

6
DuPont methodology(detailed comparison)

• II-IE/Net Provisions

7
DuPont methodology(detailed comparison)

• Net Provisions/TA

8
DuPont methodology(detailed comparison)

• TA/avgTE

9
EVA Methodology

• Information needed
• kRF 6.25 (risk free rate of return),
• kM 11.6492 (market rate of return),
• ß for Converse bank 2.675 (volatility measure)
• ß for ASHIB -0.239 (volatility measure )

10
EVA Methodology
11
Conclusion

• EVA model-Converse bank is better
• DuPont model-ASHIB is better