BAS September 2022 Presentations

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

Interest Income (loans & investments) Interest Expenses (deposits & borrowings)

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=

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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