High LeverageA debt-to-equity ratio above 3 implies heavy reliance on borrowed funding and greater sensitivity to rising interest rates. Structurally this reduces capital flexibility, increases funding cost risk, and can constrain lending capacity if regulatory or market funding conditions tighten.
Weak Cash Conversion (Operating)Low operating-cash-to-income conversion suggests earnings contain non-cash components or timing mismatches with cash receipts. Over months this can constrain liquidity, raise reliance on market funding, and reduce confidence in recurring cash available for lending or dividends.
Modest Return On EquityA low ROE signals limited shareholder returns and modest internal capital generation versus peers. Structurally this makes organic equity buildup slow, limits reinvestment capacity, and may force trade-offs between dividend payouts and strengthening capital buffers.