| Module 03 Written Assignment - Financial Statement Analysis |
| Based on the balance sheet and income statement provided for ABC Bank below, calculate the requested analysis values. |
| Balance Sheet (in millions) | Income Statement (in millions) |
| Assets | Liabilities and Equity | Interest on fees and loans | $ 6,000 |
| Cash and due from banks | $ 5,000 | Demand deposits | $ 18,000 | Interest on investment securities | 3,000 |
| Investment securities | 25,000 | NOW accounts | 46,000 | Interest on repurchase agreements | 4,000 |
| Repurchase agreements | 32,000 | Retail CDs | 12,000 | Interest on deposits in banks | 2,000 |
| Loans (adjusted for losses) | 36,000 | Debentures | 9,000 | Total interest income | $ 15,000 |
| Fixed assets | 12,000 | Total liabilities | $ 85,000 | Interest on deposits in banks | 5,000 |
| Other assets | 5,000 | Common stock | 15,000 | Interest on debentures | 3,000 |
| Total assets | $ 115,000 | Paid-in capital | 10,000 | Total interest expense | $ 8,000 |
| Retained earnings | 5,000 | Net interest income | 7,000 |
| Total liabilities and equity | $ 115,000 | Provision for loan losses | 2,000 |
| Noninterest income | 3,000 |
| Noninterest expenses | 1,000 |
| Income before taxes | $ 7,000 |
| Taxes | 5,000 |
| Net income | $ 2,000 |
| 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 |
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03WrittenAssignment_FinancialStatementAnalysis.xlsx
