Financial Statement Analysis

Based on the balance sheet and income statement provided for ABC Bank below, calculate the requested analysis values.

Balance Sheet (in millions)Income Statement (in millions)AssetsLiabilities and EquityInterest on fees and loans$ 6,000Cash and due from banks$ 5,000Demand deposits$ 18,000Interest on investment securities3,000Investment securities25,000NOW accounts46,000Interest on repurchase agreements4,000Repurchase agreements32,000Retail CDs12,000Interest on deposits in banks2,000Loans (adjusted for losses)36,000Debentures9,000Total interest income$ 15,000Fixed assets12,000Total liabilities$ 85,000Interest on deposits in banks5,000Other assets5,000Common stock15,000Interest on debentures3,000Total assets$ 115,000Paid-in capital10,000Total interest expense$ 8,000Retained earnings5,000Net interest income7,000Total liabilities and equity$ 115,000Provision for loan losses2,000Noninterest income3,000Noninterest expenses1,000Income before taxes$ 7,000Taxes5,000Net income$ 2,000Analysis of ABC Bank’s PerformanceReturn on equityReturn on assetsAsset utilizationEquity multiplierProfit marginInterest expense ratioProvision for loan loss ratioNoninterest expense ratioTax ratioNet interest margin