Return on assets is among the most important contributing factors in measuring a bank’s asset management performance, and in contributing to maximum return on assets. During 2019-20 Karafarin Bank’s return on assets (ROA) stood at 1.47% whilst its ROE reached 19.14%. However, these ratios grew considerably in the following year to reach 3.35% and 30.92%, respectively. Therefore, with these essential ratios on the rise, Karafarin Bank has boasted strong financial performance, Public Relations argued. It is noteworthy that ROA is calculated by dividing net profit to average assets. In this regard average assets of banks are less than in other industries, since their ROAs tend to be less than in other industries. This is due to the fact that financial leverage in their capital structure (which stem from banking deposits) is much higher than those of other industries. Furthermore, return on equity is also considered as the most important factor for analysing banks’ profitability. This ratio is calculated by dividing net profits to average shareholders’ equity. The following table demonstrates Karafarin Bank’s ROA and ROE for the period between 2016-17 and 2020-21. Ratios 2020-21 2019-20 2018-19 2017-18 2016-17 Return on Asset (ROA) 3.35 1.47 0.73 0.41 0.82 Return on Equity (ROE) 30.92 19.14 9.04 4.43 7.37 Source: Codal Website (audited financial statements of Karafarin Bank) The following line chart demonstrates the changes in the aforementioned ratios (ROA and ROE) for 2016-17 until 2020-21, which then outline a clear picture of the Bank’s financial performance in recent years. Source: Codal Website (audited financial statements of Karafarin Bank) The above chart clearly illustrates the considerable growth of the Bank’s ROA (from 1.47% in 2019-20 reaching 3.35% in the following year) and ROE (from 19.14% in 2019-20 to reach 30.9% in 2020-21). These growths clearly reflect upon Karafarin Bank’s strong performance in achieving profitability and in managing its assets.