The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue and paid $2.471B in interest expense last year. During the year, write offs and reserves for bad loans was a charge of $75M. This was partially offset by fees and points earned from loans and loan origination, increasing income of $24M. During that year, the bank generated net earnings of $860M. The bank has $24.9B of interest earning assets, AND total assets of $31.5B. The shareholders’ equity is $5.9B. What is the bank’s return on assets (ROA)?
The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue and paid $2.471B in interest expense last year. During the year, write offs and reserves for bad loans was a charge of $75M. This was partially offset by fees and points earned from loans and loan origination, increasing income of $24M. During that year, the bank generated net earnings of $860M. The bank has $24.9B of interest earning assets, AND total assets of $31.5B. The shareholders’ equity is $5.9B. What is the bank’s return on assets (ROA)?
Chapter6: Business Expenses
Section: Chapter Questions
Problem 43P
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The following data relates to a bank, Tolland Union. The bank earned $3.530B of in interest revenue and paid $2.471B in interest expense last year. During the year, write offs and reserves for bad loans was a charge of $75M. This was partially offset by fees and points earned from loans and loan origination, increasing income of $24M. During that year, the bank generated net earnings of $860M. The bank has $24.9B of interest earning assets, AND total assets of $31.5B. The shareholders’ equity is $5.9B.
- What is the bank’s
return on assets (ROA)?
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