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7. As a manager of a Bangladeshi bank, you anticipate the following: Loan loss provision at end of year = 1 percent of assets

 

7. As a manager of a Bangladeshi bank, you anticipate the following: Loan loss provision at end of year = 1 percent of assets Gross interest income over the next year = 10 percent of assets Noninterest income over the next year = 2 percent of assets Noninterest expenses over the next year = 3 percent of assets Tax rate on income = 30 percent Capital ratio (capital/assets) at end of year = 10 percent 1 a. Forecast the Bank's net interest margin. (0.50 point) b. Forecast the Bank's earnings before taxes as a percentage of assets. (1.00 point) c. Forecast the Bank's earnings after taxes as a percentage of assets. (0.50 point) d. Forecast the Bank's return on equity. (1.00 point)

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