Okay, we're gonna calculate HSBC's loan to deposit ratio.

And so the first thing we wanna look at would be the loans.

The loans would be an asset on HSBC's balance sheet.

So if we look at the asset section of the balance sheet, we can see we've got loans and advances to banks and loans and advances to customers sitting there.

And let's scroll a bit further down because we're also looking on the liability section of the balance sheet.

We're interested in deposits.

And so here we have deposits by banks and we've also got customer deposits.

So we're simply gonna compare those two line items on the balance sheet.

Now, clearly, HSBC is incentivized to grant more loans because off of its loans it generates interest income.

But the more of its deposits that it lends out, the greater the risk.

So this is a a way of calculating that risk.

Let's go and grab those loans and advances to banks that we highlighted in yellow and do the same for the customers. So we can copy that down and copy that across.

If we add those together, we've got the total loans and advances for HSBC.

Let's do the same for the deposits.

So let's go and grab the deposits by banks and the customer accounts and copy that across as we did previously.

Let's add that together.

Now we've got the total deposits and then the loan to deposit ratio is simply the total loans and advances over the total deposits like so.