Final answer:
The Return on Equity (ROE) is the ratio of utmost interest to a banker in analyzing their customers. It measures the bank's profitability by indicating the net income generated for each dollar of equity invested by the bank's shareholders.
Step-by-step explanation:
The ratio of utmost interest to a banker in analyzing their customers is the Return on Equity (ROE). ROE is a measure of profitability that indicates the amount of net income generated for each dollar of equity invested by the bank's shareholders. It helps the banker assess the bank's efficiency in utilizing its equity to generate profits.
To calculate the ROE, the banker divides the net income of the bank by its equity and multiplies the result by 100 to express it as a percentage. A higher ROE indicates that the bank is generating more profit from the equity invested, which is desirable for the financial institution.