BAS Presentations - March 2023

3/1/2023

Learning Objectives

1 – How Banks Make Money 2 – Income Statement 3 – UBPR Ratio Analysis 4 – Budget 5 – Impact on Capital 6 – Risk vs. Return

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Income Statement (Main Components) Interest Income (loans & investments) ‐ Interest Expenses (deposits & borrowings) = Net Interest Income + Noninterest Income (service charges, many other types) ‐ Noninterest Expenses (personnel, occupancy, other) ‐ Provision Expenses “X” Factor + or ‐ Other Items (securities gains/losses, taxes) = Net Income

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