Megalopolis Bank has the following balance sheet and income statement. Balance...
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Finance
Megalopolis Bank has the following balance sheet and income statement.
Balance Sheet (in millions) | ||||||||
Assets | Liabilities and Equity | |||||||
Cash and due from banks | $ | 10,800 | Demand deposits | $ | 37,000 | |||
Investment securities | 41,000 | NOW accounts | 107,000 | |||||
Repurchase agreements | 60,000 | Retail CDs | 46,000 | |||||
Loans | 108,000 | Debentures | 37,000 | |||||
Fixed assets | 33,000 | Total liabilities | $ | 227,000 | ||||
Other assets | 5,800 | Common stock | 12,000 | |||||
Paid-in capital | 4,000 | |||||||
Retained earnings | 15,600 | |||||||
Total assets | $ | 258,600 | Total liabilities and equity | $ | 258,600 | |||
Income Statement | |||
Interest on fees and loans | $ | 10,800 | |
Interest on investment securities | 5,800 | ||
Interest on repurchase agreements | 7,800 | ||
Interest on deposits in banks | 2,800 | ||
Total interest income | $ | 27,200 | |
Interest on deposits | $ | 10,800 | |
Interest on debentures | 3,800 | ||
Total interest expense | $ | 14,600 | |
Net interest income | $ | 12,600 | |
Provision for loan losses | 3,500 | ||
Noninterest income | 3,800 | ||
Noninterest expenses | 2,800 | ||
Income before taxes | $ | 10,100 | |
Taxes | 4,200 | ||
Net income | $ | 5,900 | |
For Megalopolis, calculate (Round your answers to 2 decimal places. (e.g., 32.16)):
e.Profit margin%
f.Interest expense ratio%
g.Provision for loan loss ratio%
h.Noninterest expense ratio%
i.Tax ratio%
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