Question

Keele Bank Plc had the following operations in year 2013 (expressed in $000).

Interest on government bonds: 367.9

Interest on issued certificates of deposits: 244.8

Bank branches rental: 134

Interest on customers' credit card balances: 120.1

Stationary purchase (paper, notebook, pens..): 2.6

Interest on mortgage loans: 305.8

Interest on issued bonds: 50.4

Charge for bad and doubtful debts: 84

Interest on interbank borrowing: 33.2

Servicing Fees on securitized loans: 15

Salaries: 77.6

Unrealized capital gains on held-to-maturity securities: +10

Unrealized capital gains on available-for-sale securities: -35

Assuming that mark-to-market standards apply, calculate the net profit before tax of Keele Bank.

Express your result in $000. You must not type $ sign or comas. Your will round your result to ONE decimal when your answer is expressed in $000. If your result is $10,530 you will be required to type 10.5.

Answer 1

$000 Particulars Interest on Govt bonds Interest on issued certificates of deposits Bank branches rentals Interest on customer credit card balance 367.9 -244.8 -134 120.1 |Stationery purchase -2.6 Interest on mortgage loans Interest on issued bonds Charge for bad and doubtful debts interest on inter bank borrowings |Servicing fees on securitized loan Salaries Unrealized capital gains through HTM 305.8 -50.4 -84 33.2 15 -77.6 10 Unrealized capital gains through AFS -35 223.6

Net profit before tax is $ 223,600.

Interest on government bonds: 367.9 ( Received Interest +)

Interest on issued certificates of deposits: 244.8 (Paid interest - )

Bank branches rental: 134 (Rent paid for branches - )

Interest on customers' credit card balances: 120.1 (Interest received +)

Stationary purchase (paper, notebook, pens..): 2.6 (-)

Interest on mortgage loans: 305.8 (Interest received +)

Interest on issued bonds: 50.4 (Interest Received +)

Charge for bad and doubtful debts: 84 (Loss - )

Interest on inter bank borrowing: 33.2 (Interest received +)

Servicing Fees on securitised loans: 15 (Revenue +)

Salaries: 77.6 (Expenses - )

Unrealized capital gains on held-to-maturity securities: +10 (Gain +) as it on question.

Unrealized capital gains on available-for-sale securities: -35 (Loss - ) as it in question