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Problems: In order to earn full credit all your work including the complete formula must be shown. (Total: 55 points)
- The following information is available to you on the banks statements ($ millions)
Total bank assets = $200,000
Total equity capital = 25,000
Interest income on loans = 4,000
Interest expense paid on deposits = 1,000
Noninterest income = 1,500
Total noninterest expenses = 1,750
Provision for loan losses = 500
Security losses = 200
Income taxes = 50
Calculate the following ratios.
- Net income after taxes - show complete income statement structure as discussed in lecture (10 points)
- Net non-interest margin (5 points)
- Net interest margin (2 points)
- Equity multiplier (3 points)
- Return on equity (8 points)
- Net operating margin (7 points)
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