Declining EBIT/EBITDA MarginsFalling operating margins point to structural pressures on operating efficiency or rising underlying costs. If persistent, margin erosion can limit long-term profitability, reduce internal funding for digitalization or branch modernization, and leave less buffer for higher credit costs.
Weak Operating Cash ConversionA low OCF-to-net-income ratio implies earnings are less reliably realized as cash. Over time this can constrain liquidity, increase dependency on wholesale funding for growth or dividends, and reduce resilience to interest-rate or deposit shocks despite reported net income.
Relatively Low Equity RatioA low equity ratio signals higher reliance on debt funding and thinner capital buffers. Structurally this increases sensitivity to credit losses and rate moves, can elevate regulatory capital pressure in downturns, and may constrain strategic flexibility for M&A or balance-sheet investment.