【正文】 Unearned ine。s assets. … ? Interest ine includes interest from: ? Loans ? Deposits held at other institutions ? Municipal and taxable securities ? Investment and trading account securities 23/69 Interest expense ? …. the sum of interest paid on all interest bearing liabilities …. ? It includes interest paid to ? transactions accounts (NOW, ATS, and MMDA) ? time and savings deposits ? shortterm non core liabilities ? longterm debt ? Interest ine less interest expense is interest ine (NII) 24/69 Noninterest ine ? Trust or fiduciary ine ? reflects what a bank earns from operating a trust department ? Fees and deposit service charges ? reflect charges on checking account activity, safedeposit boxes, and many other transactions. ? Trading revenues ? reflect missions and profits or gains from operating a trading account ? Other foreign transactions ? Other noninterest ine 25/69 Noninterest expense ? Personnel expense: ? Salaries and fringe benefits paid to bank employees ? Occupancy expense : ? Rent and depreciation on equipment and premises ? Other operating expenses: ? Utilities and ? Deposit insurance premiums 26/69 Loanloss provisions (PLL) ? Represent management39。 ? 金融機構(gòu)盈利性或資產(chǎn)價值對利率、匯率、商品價格或產(chǎn)權(quán)價反向變動的敏感程度； ? 銀行董事會和高級管理層識別、衡量、監(jiān)督和控制市場風險敞口的能力； ? 源自非交易性頭寸利率風險敞口的性質(zhì)和復(fù)雜程度； ? 源自交易性和境外業(yè)務(wù)市場風險敞口的性質(zhì)和復(fù)雜程度。 ? 根據(jù)我國銀行業(yè)現(xiàn)狀，暫不對市場風險進行評級，但可以考察銀行資產(chǎn)價值與盈利水平受利率政策與外匯價格變化的影響，作為評價盈利性和資產(chǎn)質(zhì)量的參考。s estimate of potential lost revenue from bad loans. ? It is subtracted from interest ine in recognition that some of the reported interest ine overstates what will actually be received when some of the loans go into default. ? Chargeoffs indicate loans that a bank formally recognizes as uncollectable and chargesoff against the loss reserve. 27/69 Loanloss provisions (PLL) The reserve’ s maximum size is determined by tax. Provisions for loan losses Reserve for Loan Losses Recoveries Charge offs Tax Law 28/69 Ine statement: PNC CNB, 2023 + Interest ine (II) 72% 92% Interest expense (IE) 38% 27% = Net interest Ine (NII) + Noninterest ine (OI) 27% 8% Noninterest expense (OE) 35% 46% Loanloss provisions (PLL) % % = Operating ine before securities transactions and taxes +() Realized gains or losses % 0% = Pretax operating ine Taxes % % = Net ine % % 29/69 Realized securities gains (or losses) ? They arise when a bank sells securities from its investment portfolio at prices above (or below) the initial or amortized cost to the bank. ? Generally, securities change in value as interest rates change, but the gains or losses are unrealized (meaning that the bank has not sold the securities to capture the change in value). 30/69 Relationship between balance sheet and ine statement ? The position of assets and liabilities and the relationships between different interest rates determine interest ine. ? The mix of deposits between consumer and mercial customers affects the services provided and thus the magnitude of noninterest ine and noninterest expense. ? The ownership of nonbank subsidiaries increases fee ine but often raises noninterest expense. 31/69 Relationship between balance sheet and ine statement ? Expenses and loan losses directly effect the balance sheet. ? The greater the size of loan portfolio, the greater is operating overhead and PLL. ? Consumer loans are usually smaller and hence more expensive (noninterest) per dollar of loans. 32/69 Return on equity (ROE = NI / TE) … the basic measure of stockholders ’ returns ? ROE is posed of two parts: ?