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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
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
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