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Finance Management (Đại học Hà Nội)
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TUTORIAL 2
5-1.
Jasper National Bank has just submitted its Report of Condition to the FDIC. Please fill
in the missing items from its statement shown below (all figures in millions of dollars):
Report of Condition
Total assets
Cash and due from Depository Institutions
Securities
Federal Funds Sold and Reverse Repurch.
Gross Loans and Leases
Loan Loss Allowance
Net Loans and Leases
Trading Account Assets
Bank Premises and Fixed Assets
Other Real Estate Owned
Goodwill and Other Intangibles
All Other Assets
Total Liabilities and Capital
$2,500
87
233
45
?
200
1700
20
?
15
200
175
?
Total Liabilities
?
Total Deposits
Federal Funds Purchased and Repurchase
Agreements.
Trading Liabilities
Other Borrowed Funds
Subordinated Debt
All Other Liabilities
?
Total Equity Capital
Perpetual Preferred Stock
Common Stock
Surplus
Undivided Profit
1,900 * Gross Loans and Leases = Net Loans and Leases+
Loan Loss Allowance
*This is the only asset missing and so is total assets
25 less all the rest of the assets listed here
2,500 *Total Liabilities and Capital = Total assets
* Total Liabilities = Total Liabilities and Capital2,260 Total Equity Capital
*Total Deposits = Total Liabilities Less All of the
1,600 Other Liabilities
80
10
50
480
40
?
Total Equity Capital = Perpetual Preferred Stock
240 +Common Stock+Surplus+Undivided Profit
2
24
144
70
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5-2. Along with the Report of Condition submitted above, Jasper has also prepared a Report
of Income for the FDIC. Please fill in the missing items from its statement shown below (all
figures in millions of dollars):
Report of Income
Total Interest Income
$120
? 80
40
Total Interest Expense
Net Interest Income
Provision for Loan and Lease Losses
Total Noninterest Income
Fiduciary Activities
Service Charges on Deposit Accounts
Trading Account Gains and Fees
Additional Noninterest Income
Total Noninterest Expense
Salaries and Benefits
Premises and Equipment Expense
Additional Noninterest Expense
Pretax Net Operating Income
Securities Gains (Losses)
Applicable Income Taxes
Income Before Extraordinary Income
Extraordinary Gains – Net
Net Income
?4
58
8
6
?
30
77
?
10
20
17
1
5
?
2
?
* Total Interest Expense = Total Interest
Income - Net Interest Income
* Provision for Loan and Lease Losses =
Net Interest Income + Total Noninterest
Income - Total Noninterest Expense Pretax Net Operating Income
* There are four areas of Total Noninterest
Income and only one is missing and the
total
14 is given
*There are three areas of Total Noninterest
Expense and only one is missing and the
total
47 is given
*Pretax Income Plus Security Gains Less
Taxes is income before extraordinary
13 income
* Net Income = Income Before
Extraordinary Income + Extraordinary
15 Gains – Net
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5-3.
If you know the following figures:
Total Interest Income
Total Interest Expenses
$140 Provision for Loan Loss
100 Income Taxes
Increases in bank’s undivided
15 profits
35
Total Noninterest Income
Total Noninterest Expenses
$5
5
6
Please calculate these items:
Net Interest Income
Net Noninterest Income
Pretax net operating income
Net Income After Taxes
Total Operating Revenues
Total Operating Expenses
40 *Total Interest Income Less Total Interest Expense
-20 *Total Noninterest Income Less Total Noninterest Expense
15 *Net Interest Income Plus Net Noninterest Income Less PLL
10 *Pretax net operating income less PLL less Taxes
155 *Interest Income Plus Noninterest Income
140 *Interest Expenses Plus Noninterest Expenses Plus PLL
Net Income After Taxes Less Increases in bank’s undivided
Dividends paid to Common Stockholders 4 profits
5-4.
If you know the following figures:
Gross Loans
Allowance for Loan Losses
Investment Securities
Common Stock
Surplus
Total Equity Capital
Cash and Due from Banks
Miscellaneous Assets
Bank Premises and Equipment, Gross
$275 Trading Account Securities
5 Other Real Estate Owned
36 Goodwill and other Intangibles
5 Total Liabilities
19 Preferred Stock
39 Nondeposit Borrowings
9 Bank Premises and Equipment, Net
38
34
$2
4
3
375
3
20
29
Please calculate these items:
Total Assets
Net Loans
Undivided Profit
Fed funds sold
Depreciation
Total Deposits
414 *Total Liabilities Plus Total Equity Capital
270 *Gross Loans Less ALL
12 *Total Equity Capital less PS less CS Less Surplus
23 *This is the only asset missing so subtract all other
assets from total assets
* Bank Premises and Equipment, Gross less Bank Premises
5 and Equipment, Net
355 *Total Liabilities less Nondeposit Borrowings
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5-8. The Nitty Gritty Bank is developing a list of off-balance-sheet items for its call report.
Please fill in the missing items from its statement shown below. Using Table 5-5, describe how
Nitty Gritty compares with other banks in the same size category regarding its off-balance sheet
activities.
Off-balance-sheet items for Nitty Gritty Bank (in millions of $)
Total unused commitments
Standby letters of credit and foreign office
guarantees
(Amount conveyed to others)
Commercial Letters of Credit
Securities Lent
Derivatives (total)
Notional Amount of Credit Derivatives
B
Interest Rate Contracts
$7,000
$1,350
($50)
$48
$2,200
$97,000
$22,000
54000
19,800
Foreign Exchange Rate Contracts
Contracts on other commodities and equities
All other off - balance -sheet liabilities
Total off-balance-sheet Items
Total Assets (on-balance sheet)
Off-balance-sheet assets ÷ on-balance-sheet
assets
?
$1,200
$49
Total Derivatives Less All Other
Derivatives
The sum of all of the off-balance
? $107,597 sheet items
$10,500
?
1025%
This looks very similar to other banks of the same size.
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