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Problems: In order to earn full credit all your work including the complete formula must be shown.
- The following information is available to you on the banks statements ($ million)
Total bank assets $600,000
Interest income on loans 14,400
Interest expense paid on deposits 6,000
Non-interest income 2,400
Total non-interest expenses 3,600
Provision for loan losses 240
Income taxes 120
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)
- Return on assets (2 points)
- If the banks equity is $80,000 million, calculate the equity multiplier (5 points)
- Return on equity (5 points)
- Net operating margin (8 points)
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