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Construct an income statement for nb bank

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Reference no: EM132822775

Question - Balance Sheet for NB - NB bank earns 1% on its assets and has a 20% tax rate. It earns 8% on loans, and 6% on investments. It pays 4% on time deposits, and 3% on federal funds purchased. Demand deposits pay no interest. (in $M)

Assets

Liabilities & Equity

Cash and due from banks

$20

Demand deposits

$40

Investments

200

Time deposits

150

Loans

120

Federal funds purchased

120

Premises

20

Equity

50

 

360

 

$360

Required -

(a) Construct an Income Statement for NB bank (assume a 20% tax rate and zero loan loss provision).

(b) With this information construct as many ratios of bank performance as you can with the data available.

Reference no: EM132822775

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