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Hello I need a detailed answers for these requirements,with providing the equations used Given the following Balance Sheet and Income Statement of a US Commercial
Hello
I need a detailed answers for these requirements,with providing the equations used
Given the following Balance Sheet and Income Statement of a US Commercial Bank: Balance Sheet Assets Cash 2,000 18,000 Liabilities Demand Deposits Saving Deposits 7,000 89,000 90,000 28,000 Time Deposits & (CDs) Debentures 23,000 19,000 Interbank Deposits (AA) Loans to (B) Corporates Investment in (BBB) Securities Government T. Bonds Fixed Assets Other Assets Good Will 42,000 10,000 15,000 4,000 3,000 Convertible bonds Total Common Stocks Preferred Stocks Retained Earnings 164,000 13,000 6,000 3,000 22,000 186,000 Total Assets 186,000 Total Liabilities and Equities * Loans to SMEs not rated Income Statement 15,000 4,000 6,000 1,000 Interest Income on loans Interest Income on Investment Securities Interest Income on Government 1. Bills Interest income on Interbank Deposits Total Interest Income Interest Paid on Convertible Bonds Interest Paid on CD time deposits Interest Paid on Saving Deposits Interest Paid on Debentures Total Interest Expense Provision for Loan Losses Non-Interest Income Non-Interest Expense Income before Taxes Taxes Net Income 26,000 3,000 4,000 6,000 2,000 15,000 2,000 2,000 3,000 8,000 3,000 5,000 1. Calculate: ROE, ROA, AU, EM, PM, Interest Expense Ratio, Provision for Loan Loss Ratio, Net Interest Margin, Spread 2. Is this bank adequately capitalized? Given the following Balance Sheet and Income Statement of a US Commercial Bank: Balance Sheet Assets Cash 2,000 18,000 Liabilities Demand Deposits Saving Deposits 7,000 89,000 90,000 28,000 Time Deposits & (CDs) Debentures 23,000 19,000 Interbank Deposits (AA) Loans to (B) Corporates Investment in (BBB) Securities Government T. Bonds Fixed Assets Other Assets Good Will 42,000 10,000 15,000 4,000 3,000 Convertible bonds Total Common Stocks Preferred Stocks Retained Earnings 164,000 13,000 6,000 3,000 22,000 186,000 Total Assets 186,000 Total Liabilities and Equities * Loans to SMEs not rated Income Statement 15,000 4,000 6,000 1,000 Interest Income on loans Interest Income on Investment Securities Interest Income on Government 1. Bills Interest income on Interbank Deposits Total Interest Income Interest Paid on Convertible Bonds Interest Paid on CD time deposits Interest Paid on Saving Deposits Interest Paid on Debentures Total Interest Expense Provision for Loan Losses Non-Interest Income Non-Interest Expense Income before Taxes Taxes Net Income 26,000 3,000 4,000 6,000 2,000 15,000 2,000 2,000 3,000 8,000 3,000 5,000 1. Calculate: ROE, ROA, AU, EM, PM, Interest Expense Ratio, Provision for Loan Loss Ratio, Net Interest Margin, Spread 2. Is this bank adequately capitalizedStep by Step Solution
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