Consider the following balance sheet Expected Balance Sheet for XYZ Bank Assets Yield Liabilities Cost Rate sensitive $ 1300 8% 1700 8% Fixed rate %24 $ 500 9% $ 1500 5% Non earning 2$ $ 5100 %24 1800 Equity 1900 Total $ 6900 $ 6900 What is the Net Interest Margin (NIM)
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- Assume a bank has the following balance sheet. Determine the 2-year GAP. AssetAmount LiabilityAmountCash$100 90-day CDs$1006-month Gbonds$400 360-day CDs$200 2-yearcommercialloans$400 Time Deposits 2- year $900 5-year fixedrate loans$500 Stockholder’s equity$200 Total$1,400 Total$1,400 GAP = (RSA2 yr – RSL2 yr) 0 -$100 -$200 -$300 -$800Consider the following bank balance sheet and the associated yields for earning assets and costs of liabilities. Assets Amount (000). Rate cash 400. 0% securitie 1600. 6.5% commercial loans 4000 9.0% credit card loans 3300. 10.0% loss reserves. 200 other assets 500 total assets. 10,000 Liabilities and equity Demand deposits. 1600 MMDAs. 3600 6.0% CDs. 2600 6.5% ST deposits. 1360. 5.0% Deferret tax credit. 200 Equity 640 total. 10000 Assume that net charge-offs $44,000 cash taxes paid $78,000 and allocated risk capital is $550,000 with a capital charge of 6 percent. determine : a) Calculate and show the bank income statement.Consider the following repricing buckets: Repricing Bucket Assets Liabilities 1 day $100,000 $240,000 1 day to 3 months $200,000 $140,000 3 to 6 months $200,000 $200,000 6 to 12 months $500,000 $160,000 1 to 5 years $150,000 $260,000 Over 5 years $50,000 $200,000 What is the change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within 12 months is an decrease of 1%? Round your final answer to 2 decimal places. E.g. if the final answer is -$3,590 , type -3,590 in the answer box. If the final answer is $3,590 , type 3,590 in the answer box (i.e do not type the dollar sign) .
- Use the following information about IGI security dealer. Market yields are in parenthesis, and amounts are in millions. Assets Liabilities and Equity Cash $10 Overnight Repos $170 1 month T-bills (7.05%) 75 Subordinated debt 3 month T-bills (7.25%) 75 7-year fixed rate (8.55% 150 2 year T-notes (7.50%) 50 8 year T-notes (8.96%) 100 5 year munis (floating rate) (8.20% reset every 6 months) 25 Equity 15…Company Flora has the following items on its B/S: Money at bank ( no maturity) : USD 52,000 at 1% LT securities (2 years) : USD 135,000 invested at 10% Overdraft from bank (no maturity): USD 17,000 at 4% Equity ( 5 years) : USD 100,000 LT borrowings (2 years): USD 120,000 at 3% Financial assets (5 years): USD 135,000 at 1.5% ST borrowings (8 months): USD 119,000 at 8% Calculate the net interest margin for the company? (total inflows from interest - total outflows from interest) *1.Consider the following repricing buckets: Repricing bucket Assets Liabilities 1 day $150,000 $240,000 1 day to 3 months $200,000 $140,000 3 to 6 months $200,000 $200,000 6 to 12 months $500,000 $160,000 1 to 5 years $150,000 $260,000 Over 5 years $50,000 $200,000 What is the annualised change in the bank’s future net interest income if the average rate change for assets and liabilities that can be repriced within one year is an increase of 0.5%? Round your final answer to 2 decimal places. E.g. if the final answer is $583.117 please type 583.12 in the answer box (do not type the dollar sign). 2.Key financial data and ratios are reported in the table below for ABC bank and for its competitor, DEF bank: Ratio ABC Bank DEF Bank Profit margin 6% 8% ROA 16%…
- Choose the correct letter of answer: Company D's current assets and current liabilities are P200,000.00 and P140,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.33? a. P13,800.00b. P86,200.00c. P52,612.00d. P35,870.00e. P41,818.00For the below questions use these rates that your bank has quoted you: EUR/USD: 1.0175 – 1.0180 GBP/USD: 1.2065 – 1.2070 USD/CAD: 1.2930 – 1.2935 USD/JPY: 134.85 – 134.90 AUD/USD: .6905 - .6910 Calculate the following crosses: GBP/CAD GBP/JPY CAD/JPYGiven the following information:interest sensitive assets = $300 30-day commercial paperinterest sensitive liabilities = $400 90-day CDs30-day commercial paper is 50 percent as volatile as 90-day T-bills90-day CDs are 120 percent as volatile as 90-day T-billsCalculate the standardized gap for the bank.A. $160B. $563C. -$100D. -$330
- For the below questions use these rates that your bank has quoted you: EUR/USD: 1.0175 – 1.0180 GBP/USD: 1.2065 – 1.2070 USD/CAD: 1.2930 – 1.2935 USD/JPY: 134.85 – 134.90 AUD/USD: .6905 - .6910 Calculate the following crosses: EUR/GBP EUR/JPY AUD/JPY GBP/CAD GBP/JPY CAD/JPYConsider the following balance sheet for Whiz Financial Services Limited: Assets K Liabilities K Cash 6.25 Equity 25.00 Short term consumer loans (1 yr maturity) 62.50 Demand deposits 50.00 Long term consumer loans (2 yr maturity) 31.25 31.25 Client Savings accounts 37.50 3 month T-Bills 37.50 3 month CDs 50.00 6 month T-Bills 43.75 3 months Bankers Acceptances 25.00 3 year T-Bonds 75.00 6 month commercial paper 75.00 10 year, fixed rate mortgages 25.00 1 year time deposits 25.00 30- year floating rate mortgages 50.00 2-year time deposits 50.00 premises 6.25 - Total 337.50 337.50 Required:A. Calculate the value of the rate sensitive assets, rate sensitive liabilities and therepricing gap over the next year. B. Calculate the expected change in the net interest income for the bank if interestrates rise by 1 percent on both rate sensitive…1. All of the following statements are true regarding Credit Risk, except: a. Credit Risk is the risk that the borrower may not be able to repay its obligation. b. Credit risk is included in the valuation as a factor to determine the cost of lending or financing using debt. c. Credit Risk affects the valuation of Accounts Receivable. d. All of the statements are true.2. Honesty Company paid P985,221.67 for a 90-day treasury bill with an interest rate of 6% (assume 360 days).How much should Honesty receive at maturity date?