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Megalopolis Bank has the following balance sheet and income statement. Balance Sheet (in millions) Assets Liabilities and Equity Cash and due from banks $ 9,400
Megalopolis Bank has the following balance sheet and income statement.
Balance Sheet (in millions) | ||||||||
Assets | Liabilities and Equity | |||||||
Cash and due from banks | $ | 9,400 | Demand deposits | $ | 23,000 | |||
Investment securities | 27,000 | NOW accounts | 93,000 | |||||
Repurchase agreements | 46,000 | Retail CDs | 32,000 | |||||
Loans | 94,000 | Debentures | 23,000 | |||||
Fixed assets | 19,000 | Total liabilities | $ | 171,000 | ||||
Other assets | 4,400 | Common stock | 12,000 | |||||
Paid-in capital | 4,000 | |||||||
Retained earnings | 12,800 | |||||||
Total assets | $ | 199,800 | Total liabilities and equity | $ | 199,800 | |||
Income Statement | |||
Interest on fees and loans | $ | 9,400 | |
Interest on investment securities | 4,400 | ||
Interest on repurchase agreements | 6,400 | ||
Interest on deposits in banks | 1,400 | ||
Total interest income | $ | 21,600 | |
Interest on deposits | $ | 9,400 | |
Interest on debentures | 2,400 | ||
Total interest expense | $ | 11,800 | |
Net interest income | $ | 9,800 | |
Provision for loan losses | 2,400 | ||
Noninterest income | 2,400 | ||
Noninterest expenses | 1,400 | ||
Income before taxes | $ | 8,400 | |
Taxes | 3,200 | ||
Net income | $ | 5,200 | |
For Megalopolis, calculate (Round your answers to 2 decimal places. (e.g., 32.16))
a.Return on equity%
b.Return on assets%
c.Asset utilization%
d.Equity multiplierX
e.Profit margin%
f.Interest expense ratio%
g.Provision for loan loss ratio%
h.Noninterest expense ratio%
i.Tax ratio%
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