Written Assignment - Financial Statement Analysis
Based on the balance sheet and income statement provided for ABC Bank below, calculate the requested analysis values.
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Balance Sheet (in millions)
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Assets
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Liabilities and Equity
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Cash and due from banks
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$ 5,000
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Demand deposits
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$ 18,000
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Investment securities
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25,000
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NOW accounts
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46,000
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Repurchase agreements
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32,000
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Retail CDs
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12,000
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Loans (adjusted for losses)
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36,000
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Debentures
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9,000
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Fixed assets
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12,000
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Total liabilities
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$ 85,000
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Other assets
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5,000
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Common stock
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15,000
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Total assets
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$ 115,000
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Paid-in capital
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10,000
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Retained earnings
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5,000
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Total liabilities and equity
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$ 115,000
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Income Statement (in millions)
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Interest on fees and loans
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$ 6,000
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Interest on investment securities
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3,000
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Interest on repurchase agreements
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4,000
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Interest on deposits in banks
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2,000
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Total interest income
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$ 15,000
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Interest on deposits in banks
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5,000
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Interest on debentures
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3,000
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Total interest expense
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$ 8,000
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Net interest income
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7,000
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Provision for loan losses
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2,000
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Noninterest income
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3,000
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Noninterest expenses
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1,000
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Income before taxes
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$ 7,000
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Taxes
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5,000
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Net income
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$ 2,000
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Analysis of ABC Bank's Performance
- Return on equity
- Return on assets
- Asset utilization
- Equity multiplier
- Profit margin
- Interest expense ratio
- Provision for loan loss ratio
- Noninterest expense ratio
- Tax ratio
- Net interest margin