Problems: In order to earn full credit all your work including the complete formula (where appropriate) must be shown. (Total: 55 points)

1. ($ millions)

Interest income on loans and securities $ 12,000

Interest paid on deposits 10,000

Non-interest income 2,500

Total non-interest expense 3,500

Provision for loan loss 500

Security gains 250

Income taxes 210

Total bank assets 60,000

Total bank equity 6,000

Calculate the following ratios.

(a) Net income after taxes

(b) Net non-interest margin

(c) Net profit margin

(d) Equity multiplier

(e) Return on equity

(f) Net operating margin