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Problems: In order to earn full credit all your work including the complete formula must...

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Finance

Problems: In order to earn full credit all your work including the complete formula must be shown. (Total: 55 points)

  1. 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.

  1. Net income after taxes - show complete income statement structure as discussed in lecture (10 points)
  2. Net non-interest margin (5 points)
  3. Net interest margin (2 points)
  4. Equity multiplier (3 points)
  5. Return on equity (8 points)
  6. Net operating margin (7 points)

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