Provision for credit loss it is earnings season and i want

Assignment Help Finance Basics
Reference no: EM13784583

Provision for Credit Loss It is earnings season and I want you to look into annual report of bank of America and Citigroup. Using the last five years of Bank of America and Citigroup annual report, let us discuss the impact of loan loss provision on earnings per share. Please pay attention to provision for credit loss for both banks, Both banks overbooked profit by taking smaller provision for loan losses, but one bank overbooked Profit more than the other. calculate and graph provision of credit losses over total assets. Financial institutions legally can massage the earnings per share by taking smaller provision for anticipated credit losses over the next quarterly reporting period. Regulator allows the financial institution to set aside 1.25 percent of core capital as provision for loan losses. Which bank overbooked profit? You can answer this question by looking at the ratio of credit provision over total assets. Write a brief evaluation. 

Reference no: EM13784583

Questions Cloud

History of the accounting standard setting process : Choose a foreign country which you would like to research in terms of the history of the accounting standard setting process and the current standard used.
Define project deliverables : Define project deliverables. Define project constraints and assumptions. Develop a preliminary action plan.
Characteristics of the mixed-quality student : What are the characteristics of the mixed-quality student? Which do you think are most important?
How is policing different in a free democratic society : How is policing different in a free democratic society as opposed to a totalitarian society? Why is the rule of law important for policing in a democracy
Provision for credit loss it is earnings season and i want : Provision for Credit Loss It is earnings season and I want you to look into annual report of bank of America and Citigroup. Using the last five years of Bank of America and Citigroup annual report, let us discuss the impact of loan loss provision on ..
Journal entry to record the issuance of the bonds : Please prepare the journal entry to record the issuance of the bonds. In using the effective-interest method, prepare the journal entries to record the first two interest payments.
What are the major components of strategic management : What are the major components of strategic management.
Why might the variations in crime rates among different : Why might the variations in crime rates among different demographic groups result in misguided law enforcement strategies
Person''s nutrition needs issues : Would childhood exercise have had any influence on how active this person is today? Why or why not?

Reviews

Write a Review

Finance Basics Questions & Answers

  Prepare a depreciation schedule showing the depreciation

The firm plans to depreciate the equipment using the MACRS 5-year normal recovery period. Prepare a depreciation schedule showing the depreciation expense for each year.

  Assignment- implementing the budget

Assignment: Implementing the Budget, Write a three to four (3-4) page paper addressing the criteria below. (Note: Change the title of the report to reflect the selected agency's name and the years to 2013-2014.)

  A stock has annual returns of 6 percent 14 percent -3

a stock has annual returns of 6 percent 14 percent -3 percent and 2 percent for the past four years. the arithmetic

  Task of forecasting demand

I'm the manager at the marina, after your wonderful job of computing demand for gasoline, now has decided that she will put you to the task of forecasting demand for Wave Runners.

  Advantages and disadvantages of mergers and acquisitions

What are the advantages and disadvantages of mergers and acquisitions to the economy and what are some ways the government is involved in them, and should the government be more or less involved?

  What is the fair price of this investment

An investment pays $2,500 per year for the first 6 years, $3,000 per year for the next 8 years, and $5,000 per year the following 10 years (all payments are at the end of each year). If the discount rate is 7% compounding quarterly, what is the fa..

  Real value of the yuan over the past year

What has happened to the real value of the yuan over the past year? Has it gone up or down? A little or a lot? What are the likely effects of the change in the yuan's real value on the dollar profits of a company like Procter & Gamble that sells al..

  The market yield for preferred stocks of the same risk

we assume a preferred stock pays dividends of 4.30 per share per year and the market yield for preferred stocks of the

  What is the bonds current value

Power of Tower Inc. has bonds that mature in 6½ years with a par value of $1,000. They pay a coupon rate of 9% with semiannual payments. If the required rate of return on these bonds is 11% what is the bond's current value?

  Interest rate differential

Assume interest rate differential in dollar and Swiss francs is 4 percent per annum-What actions would you take to profit from the above condition provided that you can borrow SF 1,000,000.00 or its dollar equivalent?

  Which option strategy would you pursue

Which option strategy would you pursue? Be specific, thus I want you to look up current options for Duke Power and tell me which option you would choose, why, and how much you would pay/receive.

  What percent of ownership must be sold to grant the 100

r.k. maroon rkm is a seed-stage web-oriented entertainment company with important intellectual property. rkms founders

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd