Income Statement: 2012 (Table 2.3, page25)3.00Net Interest Income(0.80)Provisionfor Loan Losses0.90Non-Interest IncomeNon-lnterest Expense(2.50)0.60Pre-Tax Operating Income6RiskManagementandFinancialInstitutions3e,Chapter2,CopyrightJohnC.Hull2012
Income Statement: 2012 (Table 2.3, page 25) Net Interest Income 3.00 Provision for Loan Losses (0.80) Non-Interest Income 0.90 Non-Interest Expense (2.50) Pre-Tax Operating Income 0.60 Risk Management and Financial Institutions 3e, Chapter 2, Copyright © John C. Hull 2012 6
Year2013 What happens in year 2013 if it is thesame as year2012 exceptthat provisionfor loan losses is 4.0 instead of 0.8?7RiskManagementandFinancialInstitutions3e,Chapter2,CopyrightJohnC.Hull2012
Year 2013 ⚫ What happens in year 2013 if it is the same as year 2012 except that provision for loan losses is 4.0 instead of 0.8? Risk Management and Financial Institutions 3e, Chapter 2, Copyright © John C. Hull 2012 7