1. What is the bank's net interest margin (NIM)? Is the bank performing better or worse than...
Question:
1. What is the bank's net interest margin (NIM)? Is the bank performing better or worse than average?
A) 2.54%, worse than average
B) 3.38%, worse than average
C) 4.00%, better than average
D) 5.72%, better than average
E) 4.00%, worse than average
2. What must net noninterest income (net of noninterest expense) be in order for FNB to have a 12% return on equity (ROE)? Based on your answer, must FNB be performing better or worse than the industry average in this area?
A) -$14.77 (millions), worse
B) -$17.23 (millions), worse
C) $14.77 (millions), better
D) $17.23 (millions), better
E) -$17.23 (millions), better
3. If the net noninterest income were to change to -$16, what would the average loan rate (ALR) have to be to generate a 12% return on equity (ROE)? does this ALR appear feasible?
A) 5.00%, feasible
B) 3.5%, feasible
C) 6.25%, feasible
D) 7.67%, not feasible
E) 6.25, not feasible
Financial Markets and Institutions
ISBN: 978-0077861667
6th edition
Authors: Anthony Saunders , Marcia Cornett