Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I WANT ANSWER OF E, F, G only 02 16,000 87,000 27,000 22.000 152,000 15,000 6,000 22,000 195,000 Bank Alpha has the following balance sheet

image text in transcribed

I WANT ANSWER OF E, F, G only

02 16,000 87,000 27,000 22.000 152,000 15,000 6,000 22,000 195,000 Bank Alpha has the following balance sheet and income statement: Balance sheet (Em) Assets Liabilities Cash and balances at central bank 5,000 Demand deposits Investment securities 27,000 Time deposits Repos 38,000 Repos Loans 105,000 Debentures Fixed assets 14,000 Tot. Liabilities Other assets 6,000 Common stock Total assets 195,000 Paid-in capital Retained earnings Tot. Liab, and Equity Income statement Interest on loans 8,000 Interest on investment securities 7,000 Interest on repos 4,000 Interest on deposits in banks 2,000 Interest income 21,000 Interest on deposits 9,000 Interest on debentures 3,000 Interest expense 12,000 Net interest income 9,000 Provision for loan losses 2,000 Non-interest income 3,000 Non-interest expenses 1,500 Income before taxes 8,500 Taxes 2,000 Net income 6,500 Define and calculate the: a) Return on Equity (ROE). (2 marks) b) Return on Assets (ROA). (2 marks) c) Equity multiplier (2 marks) [Please Turn Over) d) Tax Ratio (2 marks) e) f) Net interest margin (NIM). (2 marks) Cost to income (C/1) ratio. (2 marks) Critically discuss the concept bank performance and, by providing pertinent examples, explain the rationale for financial ratio analysis. (21 1/3 marks) e)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Planning & Analysis And Performance Management

Authors: Jack Alexander

1st Edition

1119491487, 9781119491484

More Books

Students also viewed these Finance questions