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Arab Bank has the following financial information. (5 marks; 1 mark each) Balance Sheet Income Statement Cash $100 Interest Income $400 Securities Investments $600 Interest

Arab Bank has the following financial information. (5 marks; 1 mark each)

Balance Sheet

Income Statement

Cash

$100

Interest Income

$400

Securities Investments

$600

Interest Expenses

($150)

Net Loans

$1200

Non-Interest Income

$50

Net Premises and Equip.

$300

Non-Interest Expenses

($100)

Total Assets

$2200

Provision for Loan Losses

($60)

Deposits

$1100

Pre-Tax Net Operating Income

$140

Non-Deposit Borrowings *

$800

Securities Gains (Losses)

($40)

Equity Capital

$300

Taxes

($45)

Total Liabilities and Equity

$2200

Net Income

$55

* All Purchased Funds

  1. Use this information to calculate Arab Banks ROE

  1. Use this information to calculate Arab State Banks ROA

  1. Use this information to calculate Arab Banks equity multiplier

  1. Use this information to calculate Arab Banks ROE if the equity multiplier is 10

  1. Use this information to calculate Arab Banks NIM

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