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Megalopolis Bank has the following balance sheet and income statement.
Balance Sheet (in millions) |
Assets | Liabilities and Equity | |
Cash and due from banks | $ | 10,800 | | | Demand deposits | $ | 37,000 | |
Investment securities | | 41,000 | | | NOW accounts | | 107,000 | |
Repurchase agreements | | 60,000 | | | Retail CDs | | 46,000 | |
Loans | | 108,000 | | | Debentures | | 37,000 | |
Fixed assets | | 33,000 | | | Total liabilities | $ | 227,000 | |
Other assets | | 5,800 | | | Common stock | | 12,000 | |
| | | | | Paid-in capital | | 4,000 | |
| | | | | Retained earnings | | 15,600 | |
Total assets | $ | 258,600 | | | Total liabilities and equity | $ | 258,600 | |
|
Income Statement |
Interest on fees and loans | $ | 10,800 | |
Interest on investment securities | | 5,800 | |
Interest on repurchase agreements | | 7,800 | |
Interest on deposits in banks | | 2,800 | |
Total interest income | $ | 27,200 | |
Interest on deposits | $ | 10,800 | |
Interest on debentures | | 3,800 | |
Total interest expense | $ | 14,600 | |
Net interest income | $ | 12,600 | |
Provision for loan losses | | 3,500 | |
Noninterest income | | 3,800 | |
Noninterest expenses | | 2,800 | |
Income before taxes | $ | 10,100 | |
Taxes | | 4,200 | |
Net income | $ | 5,900 | |
|
For Megalopolis, calculate (Round your answers to 2 decimal places. (e.g., 32.16)):
e.Profit margin%
f.Interest expense ratio%
g.Provision for loan loss ratio%
h.Noninterest expense ratio%
i.Tax ratio%
Answer & Explanation
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