《商业银行管理》课后习题答案Problems.docVIP

Problems 5.3 Depositors and Merchants Bank has an equity-to-asset ratio of 7.5 percent which means its equity multiplier must be: 1/(Equity Capital / Assets) = = 1 / 0.075 = 13.33x In contrast, Newton National Bank has an equity multiplier of: 1/(Equity Capital / Assets) = = 16.67x With an ROA of 0.85 percent Newton National would have an ROE of: ROE = 0.85 x 16.67x = 14.17 percent. In this case Newton National Bank is making greater use of financial leverage and is generating a higher return on equity capital. Depositors and Merchants has an ROE of: ROE = 0.85 x 13.33 x = 11.33 percent. 5-4. The income and expense statement for Gilcrest Merchants National Bank, when arranged in proper order, would appear as follows: Among the key ratios that can be calculated are the following: 1、 ROE = Net Income After Taxes = $5 =0.0180 or 1.80 percent Equity Capital $80 2、 ROA = Net Income After Taxes = $5 =0.005 or .5 percent Total Assets $1000 3、 Net Interest Margin = Total Interest Income –Total Interest Expenses [($61 + $12) – ($49 + $6)] =0.0180 or 1.8 percent Total Assets $1000 4、 Net Noninterest = $7 - $18 =-0.011 or –1.1 percent Margin $1000 5、 Net operating margin = [Total Operating Revenues – Total Operating Expenses] / Total Assets = = 0.0070 or 0.70 percent. 6、 Earnings = Total Interest Income - Total Interest Expenses = $61 + $12 - $49 + $6 Spread Total Earning Assets Total Interest Bearing $830 $710 Liabilities 0.0880 – 0.0775 or 8.8 percent – 7.75 percent or 1.05 percent 7、 Profit Margin = = = 0.0625 or 6.25 percent. 8、 Asset Utilization = = = = 0.08 or 8.0 percent 9、 Equity Multiplier = = 12.5x 10、 Employee Productivity = Net Operating Income = $80 - $73 = $175,000 Ratio # of Full Time Employees $40 per employee 5-5. The rates of return requested for Shadowwood National Bank are as follows: 1-2、 ROE = $105 ROA = $105 $15,765 - $15,440 $15,765 0.3231 or 32.31