Megalopolis Bank has the following balance sheet and income statement.

 

calculate:

the marginal profit margin

Net interest margin

The Spread

Overhead efficiency

Need to show work and what numbers to add to get answers

Transcribed Image Text:

Cash and due from banks Balance Sheet (in millions) Assets Liabilities and Equity Demand $ 9,000 deposits $ 19,000 Investment securities 23,000 NOW accounts 89,000 Repurchase agreements 42,000 Retail CDs 28,000 Loans 90,000 Debentures 19,000 Fixed assets 15,000 Total liabilities $155,000 Other assets 4,000 Common stock 12,000 Total assets $183,000 Paid-in capital 4,000 Retained earnings 12,000 Total liabilities and equity $183,000 Income Statement Interest on fees and loans Interest on investment securities Interest on repurchase agreements Interest on deposits in banks Total interest income Interest on deposits Interest on debentures Total interest expense Net interest income Provision for loan losses Noninterest income Noninterest expenses Income before taxes Taxes Net income $ 9,000 4,000 6,000 1,000 $20,000 $ 9,000 2,000 $11,000 $ 9,000 2,000 2,000 1,000 $ 8,000 3,000 $ 5,000 Cash and due from banks Balance Sheet (in millions) Assets Liabilities and Equity Demand $ 9,000 deposits $ 19,000 Investment securities 23,000 NOW accounts 89,000 Repurchase agreements 42,000 Retail CDs 28,000 Loans 90,000 Debentures 19,000 Fixed assets 15,000 Total liabilities $155,000 Other assets 4,000 Common stock 12,000 Total assets $183,000 Paid-in capital 4,000 Retained earnings 12,000 Total liabilities and equity $183,000 Income Statement Interest on fees and loans Interest on investment securities Interest on repurchase agreements Interest on deposits in banks Total interest income Interest on deposits Interest on debentures Total interest expense Net interest income Provision for loan losses Noninterest income Noninterest expenses Income before taxes Taxes Net income $ 9,000 4,000 6,000 1,000 $20,000 $ 9,000 2,000 $11,000 $ 9,000 2,000 2,000 1,000 $ 8,000 3,000 $ 5,000

Answer rating: 100% (QA)

Based on the provided balance sheet and income statement here is the breakdown of Megalopolis Banks ... View the full answer