is calculated by deducting noninterest expense and...

___________ is calculated by deducting noninterest expense and provision for loan losses from noninterest income. Group of answer choices Net interest income Net income after provision for possible loan losses Net noninterest income Income or loss before income taxes Net profit margin

Transcript

00:01 Hello students, here is a question.

00:03 So, income and expenses statement contain the following amounts.

00:07 The net interest income will be 800, net non -interest income is minus 500.

00:14 Suppose, you were told that bank total interest income is twice as large as the total interest expenses, it is non -interest income, three -fourth of non -interest expenses.

00:25 Imagine that provision for loan and losses is equal to 3%, it is a total income, while taxes generally amounted to 30 % of a net income before taxes.

00:35 So, we need to calculate total interest income, total interest expenses, total non -interest income, total non -interest expenses, provision for loan losses and net income before tax.

00:46 So, let us start solving this.

00:48 So, in the question, we have an information about net income, net income interest, that is 800, net non -interest income, which is minus 500 dollars.

01:01 So, first let us calculate the total interest, that is tii and total interest expenses, tie.

01:10 So, given total income is a twice the total interest expenses, so it comes to 2 total income expenses minus total income expenses, which is 800.

01:23 So, if there is nothing number here in the alphabets, we can consider it as 1.

01:28 So, 2 minus 1 will be 1.

01:30 So, total income expenses will be 800 dollars.

01:37 So, next is tii, which is 2 into 800, which gives us 1600.

01:45 And the next thing is, let us calculate the total non -interest income, that is tni and total non -interest expenses, tne.

02:05 So, tni is equal to 0 .75 tne...