03 Financial Statement Analysis

Financial Statement Analysis

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