AssetsCashSecuritiesLoansOtherTotalNon-interest IncomeNon-Interest ExpenseProvision for Loan LossTaxesNet Income (NI)Interest Income on LoansInterest Income on SecuritiesInterest Expense58.04%6.12%$8501,9255,400The bank's asset utlilization ratio (AU) is5.46%9753.74%$9,15018.60%Liability and EquityDepositsOther BorrowingEquityTotalIncome Statement$4509524678Use the following formula for the operating income:Operating income = Interest revenue + Noninterest income - Interest expense - Loan loss provisions11235115$115$6,4751,6451,030$9.150

Asset utilization ratio is an important ratio for banks. This ratio measures the average yield on…

Answered: Use the following formula for the…

Use the following formula for the operating income: Operating income = Interest revenue + Noninterest income - Interest expense - Loan loss provisions The bank's asset utlilization ratio (AU) is

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

Assets
Cash
Securities
Loans
Other
Total
Non-interest Income
Non-Interest Expense
Provision for Loan Loss
Taxes
Net Income (NI)
Interest Income on Loans
Interest Income on Securities
Interest Expense
58.04%
6.12%
$850
1,925
5,400
The bank's asset utlilization ratio (AU) is
5.46%
975
3.74%
$9,150
18.60%
Liability and Equity
Deposits
Other Borrowing
Equity
Total
Income Statement
$450
95
246
78
Use the following formula for the operating income:
Operating income = Interest revenue + Noninterest income - Interest expense - Loan loss provisions
112
35
115
$115
$6,475
1,645
1,030
$9.150

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