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Forecast Guidelines : Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines 1 Expect no growth in loans for
Forecast Guidelines : Do a 12 month forecast (Jan 2022 to Dec 2022) using the following budget guidelines | |
1 | Expect no growth in loans for the first three months and then 5% each month from April to June. |
It will stay at this level (so 0% growth) until September and then we expect 3% growth from October to the end of the year. | |
2 | For the deposits, we expect a constant growth of 3.25% each month for the entire year |
3 | Operational and admin expenses will increase by $750 every month |
4 | The plan is to leave our average loan interest rate at 5% until June and then increase it to 7% for the second half of the year |
5 | For deposits, the interest we paid to our customers will go up by 0.10% each month for the first six months, and then stay flat (no change) for the rest of the year |
ABC BANK | |
Balance Sheet | |
2022 FORECAST | |
Jan | |
Assets | |
Loans | |
Monthly Growth | 0% |
Balance | $50,000,000 |
Interest rate (per year) | 5.00% |
Liabilities | |
Monthly Growth | 0% |
Deposits | $75,000,000 |
Interest rate (per year) | 1.00% |
Income Statement | 2022 FORECAST |
Jan | |
Loan Interest Income | $208,333 |
Deposits Interest Expense | $62,500 |
Operations and Admin Expense | 15,000 |
Net Income (Profit or Loss) | 130,833 |
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