Simplified income statement of abc bank

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Reference no: EM133074901

The simplified beginning Balance Sheet of "ABC" Bank on December 31st , 2020 in Million USD  is  given by

Assets

Liabilities and Equities

Cash         

$5

Deposits

$90

Marketable Securities

$10

Subordinate long-term debt

$5

Net Loans: 

$80

Equity

$5

Fixed Assets

$5

 

 

TOTAL ASSETS

$100

Total Debt & Equity

$100

The simplified income statement of "ABC" Bank for a year between Jan 1st, 2021 and Dec 31st, 2021 in million USD is given by 

Net Interest Income

$3.00

Provision for Loan Loss

-$0.80

Non-Interest Income

$0.90

Non-Interest Expense

-$2.50

 

 

Pre-tax operating Profit

$0.60

Tax (at 30%)

-$0.18

Net Income

$0.42

Assuming the following for the Bank "ABC": 

  1. doesn't pay any dividend, 
  2. doesn't give any new loans, (Gross loans remain the same, net loans will change depending upon the provision for loan loss)
  3. Deposits remain at the previous level.
  4. Subordinate long-term debt remains the same
  5. Marketable securities remain the same
  6. Fixed Assets Remain the same 

What will be the Balance Sheet at Dec 31st, 2021.

Assets

Liabilities and Equities

Cash

 

Deposits

$90

Marketable Securities

$10

Subordinate long-term debt

$5

Net Loans: 

 

Equity

 

Fixed Assets

$5

 

 

TOTAL ASSETS

 

Total Debt & Equity

 

Reference no: EM133074901

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