international banking

1. 21 Thrift Operations

20. Exhibit 22.5 Average Duration of Assets Versus Liabilities a a T ime 0.0 Dec March June Sept Dec March June Sept Dec March 1.0 1.5 2.0 2.5 2000 1999 1998 2001 Assets Liabilities

24. Exhibit 22.6 Framework for Valuing a Savings Institution Economic Growth Expected Cash Flows to Be Generated by the Commercial Bank Required Return by Investors Who Invest in the Commercial Bank Inflation Money Supply Budget Deficit Risk-Free Interest Rate Risk Premium on the Commercial Bank Value of the Commercial Bank Abilities of the Savings Institution’s Managers Industry Conditions (such as Regulations, Technology , and Competition)

30. Exhibit 22.9 Income Statement Per Total Assets for Savings Institutions 1 9 9 6 1 9 9 8 2 0 0 0 Interest Income 7 . 0 2 % 6 . 5 3 % 6 . 6 7 % – Total interest expense 4 . 1 0 3 . 8 5 4 . 1 4 = Net interest income 2 . 9 2 2 . 6 8 2 . 5 3 – Loan loss provision . 2 4 . 1 6 . 1 6 + Noninterest income . 7 3 . 8 4 . 9 0 – Noninterest expense 2 . 5 0 2 . 1 6 2 . 0 3 = Earnings before tax . 9 1 1 . 2 0 1 . 2 4