Question

What is the 3 part statement that must be displayed when Banks sell both bank products and insurance and/or investment products? (Hint: Go online and look at bank sites)

Answer 1

There are some banks that also provide insurance facility and third party products. Banks which sell both banks products and insurance, have to display these three statements-

Statement of Profit & Loss- This statement shows revenue and expenditures of bank and net profit is calculated by deducting all the expenditures, including interest and tax from the revenue. This statement shows the profitability position of the banks.

Cash flow statement- This statement shows inflow and outflow of cash, this shows cash from Operating, financing and investing activities and finally the net cash balance

Schedule to the Financial statement or Balance sheet- This statement shows the Assets, liabilities, share capital and retained earnings. This include Gross block and net block of assets.

These three statements are very important to make and display in the public domain.