1.Consider the following repricing buckets: Repricing bucket Assets Liabilities 1 day $150,000 $240,000 1 day to 3 months $200,000 $140,000 3 to 6 months $200,000 $200,000 6 to 12 months $500,000 $160,000 1 to 5 years $150,000 $260,000 Over 5 years $50,000 $200,000 What is the annualised change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%? Round your final answer to 2 decimal places. E.g. if the final answer is $583.117 please type 583.12 in the answer box (do not type the dollar sign). 2.Key financial data and ratios are reported in the table below for ABC bank and for its competitor, DEF bank: Ratio ABC Bank DEF Bank Profit margin 6% 8% ROA 16% 18% Total assets $3 billion $4 billion ROE 30% 36% On the basis of the information above, which of the following statements is most correct? DEF has higher equity multiplier ratio and net income than ABC. DEF has a higher asset utilisation than ABC. ABC has lower asset utilisation than DEF. ABC has higher equity multiplier ratio and net income than DEF.
1.Consider the following repricing buckets:
|
Repricing bucket |
Assets |
Liabilities |
|
1 day |
$150,000 |
$240,000 |
|
1 day to 3 months |
$200,000 |
$140,000 |
|
3 to 6 months |
$200,000 |
$200,000 |
|
6 to 12 months |
$500,000 |
$160,000 |
|
1 to 5 years |
$150,000 |
$260,000 |
|
Over 5 years |
$50,000 |
$200,000 |
What is the annualised change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%?
Round your final answer to 2 decimal places. E.g. if the final answer is $583.117 please type 583.12 in the answer box (do not type the dollar sign).
2.Key financial data and ratios are reported in the table below for ABC bank and for its competitor, DEF bank:
Ratio ABC Bank DEF Bank
Profit margin 6% 8%
Total assets $3 billion $4 billion
On the basis of the information above, which of the following statements is most correct?
DEF has higher equity multiplier ratio and net income than ABC.
DEF has a higher asset utilisation than ABC.
ABC has lower asset utilisation than DEF.
ABC has higher equity multiplier ratio and net income than DEF.
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