question archive Calculate the bank's asset utilization ratio (AU)
Calculate the bank's asset utilization ratio (AU)
Subject:FinancePrice:2.86 Bought11
Calculate the bank's asset utilization ratio (AU). Bank A (Dollars in Millions) Assets Liability and Equity Cash $ 850 Deposits Securities 1,925 Other Borrowing Loans 5,400 Equity Others 975 Total Total $ 9,150 $ 6,475 1,645 1,030 $ 9,150 Income Statement Interest income on loans Interest income on securities Interest expenses Noninterest income Nonincome expenses Provision for loan loss Taxes NI $ 450 95 246 78 112 35 115 $ 115
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Asset Utilization Ratio = ( Total income / Total Assets ) * 100
Total Income = Interest income + Non interest income
= (450 + 95) + 78
= $623
Total Assets = $9150
Bank's Asset Utilization ratio = ( 623 / 9150 ) * 100
= 6.80 %
