High LeverageElevated leverage increases sensitivity to credit losses, funding stress, or adverse rate moves and reduces capital buffer. Over the medium term this constrains the bank's ability to absorb shocks, expand lending safely, or meet tighter regulatory capital requirements without raising equity.
Low Equity Ratio & Moderate ROEA modest ROE combined with a low equity ratio signals limited profitability per unit of capital and thin capital cushions. Structurally this limits capacity for risk-taking, organic growth, and dividend sustainability unless profitability or capital levels improve.
Margin Pressure / EBITDA DeclineSigns of margin compression and declining EBITDA margin suggest rising funding or operating costs or competitive pressure on spreads. Persisting margin erosion would weaken earnings resilience and reduce internal capital generation over multiple quarters unless margins are restored.