In: Finance
If you know the following information:
total interest income $150
total interest expense 100
total noninterest income 75
total noninterest expense 90
provision for loan losses 10
income taxes 4
increases in banks undivided profits 6
calculate the following:
net interest income
net non interest income
pretax net operating income
net income after taxes
total operating revenues
total operating expenses
dividends paid to common stockholders
Ans.1. Net Interest Income = Total interest Income - total interest expenses = $150-$100 = $50
Ans.2. Net non interest income = total non-interest income - total non-interest expenses
Net non interest income = $75-$90 = ($15).
Ans.3.Net operating Income = Operating Revenue- Operating Expenses.
Net operating income = Net Interest Income + Net non interest income - ( total interest expenses+ total non-interest expenses+ provision for loan losses = $150+$75 - ($100+ $90+ $10) = $25.
Net operating Income = $150+$75 -( $100+ $90) = $35.
Ans.4. Net operating Income after taxes = Net operating Income - Taxes = $35 -$4 = $31.
Ans.5.Total operating Revenue = Total interest Income + Total non-interest income = $150+ $75 = $225.
Ans.6.Total operating Expenses = Total interest expenses+ total non-interest expenses = $100+$90 = $190.
Ans.7. Dividend paid to shareholders = Net Income - increase in banks undivided profits = $31 - $6 = $25