1. As a manager of Bangla Bank, you anticipate the following:

Loan loss provision at end of year = 1 percent of assets

Gross interest income over the next year = 14 percent of assets

Noninterest income over the next year = 2 percent of assets

Noninterest expenses over the next year = 5 percent of assets

Gross interest expenses over the next year = 5 percent of assets

Tax rate on income = 40 percent

Capital ratio (capital/assets) at end of year = 10 percent

1. Forecast Bangla Banks net interest margin. (0.75 points)
2. Forecast Bangla Banks earnings before taxes as a percentage of assets. (1.5 points)
3. Forecast Bangla Banks earnings after taxes as a percentage of assets. (0.75 points)

Forecast Bangla Banks return on equity. (1 points