The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue
Question:
The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue and paid $2.671B in interest expense last year. There were also fees and points earned from loans and loan origination, increasing income of $24M.
During that year, the bank generated net earnings of $660M. The bank has $24.9B of interest earning assets at year end ($22.3B prior year), AND total assets of $31.5B at year end ($30.2B prior year). The shareholders' equity is $5.9B at year end ($5.1B prior year).
a. What is the net interest margin using earning assets?
b. What is the bank's return on assets (ROA)?
c. What is the bank's return on equity (ROE)?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill