Simple Example,
Company A has a total of 100 M Loans - Provisioned for 20 M Loans
At the end of the year NPL = 10 M
Gross NPL% = 10/100 = 10%
Net NPL = Gross NPL - Provisions for Credit Losses
Net NPL% = (10-20)/100=-10% or NM
Would appreciate some help, this simplified example is wrt an actual annual report. The company provisioned more loans than the actual NPL. However, the Net NPL was still positive.
Cheers!
| +139 | AI Creating More Work | 44 | 9h |
| +139 | Senior Banker's Guide to IB Recruiting / Group Placement (with a Healthcare Bent) | 17 | 16h |
| +127 | Shit PWP Culture | 86 | 7h |
| +117 | Is pay at BofA really that bad? | 58 | 8h |
| +55 | UBS Group AG is coming under renewed US pressure over Credit Suisse’s handling of Nazi-Linked accounts | 6 | 1h |
| +44 | Is the life of a VP at a 'top-bank' really good? | 15 | 1d |
| +29 | Law school instead of MBA for RX Banking | 5 | 1d |
| +29 | No BB RO 2026 | 10 | 10h |
| +26 | Misrepresented Houston IB | 9 | 17h |
| +23 | Best way to spend senior year? Bucket list | 8 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Est quia et vel earum quo. Cupiditate quasi sed sed qui debitis quidem aut et. Vero inventore tempora voluptas doloribus similique sint eos.
Nobis molestiae perspiciatis occaecati odio qui aut sunt. Ipsa est odio omnis autem. Quo optio voluptatem ratione est quibusdam minus. Magnam recusandae facilis quia totam.
Molestias eos ipsum omnis cum et inventore excepturi. Atque vitae beatae placeat alias enim magnam a. Maiores molestiae tenetur quia nobis id aut natus. Quidem accusantium minima dolorum quo.
Totam itaque sit illo dolores excepturi architecto. Amet odio rerum asperiores maxime et. Saepe tempore et est laborum ducimus nesciunt. Fugiat officia iusto alias deleniti voluptatum voluptas error ullam.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...