Question

QUESTION 10

1. Stoke Bank Plc had the following operations in year 2019 (expressed in $000).

   Interest on government bonds: 367.9

   Interest on issued certificates of deposits: 244.8

   Bank branches rent: 130

   Interest on customers' credit card balances: 122.1

   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: 87.6

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

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

   Assuming that mark-to-market standards apply, calculate the non-interest expenses of Stoke 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

A noninterest expense is an operating expense of a bank or financial institution that is classified separately from interest expense and provision for credit losses. Examples of noninterest expenses include:

Employee salaries, bonuses, and benefits

Equipment rental or leasing

Information technology (IT) costs

Rent, telecommunication services, taxes, professional services, and marketing

The non interest expenses for the bank are as follows:
Bank branches rent: 130
Stationary purchase (paper, notebook, pens..): 2.6
Servicing Fees on securitized loans: 15
Salaries: 87.6
Hence total: 130+2.6+15+87.6= 235.2
The answer calculated are in the req format, hence the answer is 235.6.

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