To calculate shareholders equity we need to do some calculations. So let's go find them above the income statements. So here's our equity section and we start with our estimated common equity tier one ratio. I can find that up in my assumptions. I need 13% of risk weighted assets. Next up, I need to calculate my risk weighted assets. Risk weighted assets, again, go up to your assumption, it's going to be 37.5% of my total assets. So down to my balance sheet, find total assets. There they are. Just because I double check, we just recalculate it here. So risk weighted assets divided by my total assets, yes, gives me the same 37.5.

Okay, so my estimated common equity tier one's going to be 13% of my risk weighted assets, 448.6. That's the equity the regulator says has to be put aside in case of risk weighted assets. However, that's not the equity we're going to have on our balance sheet, although it does drive it. What we need to do is we need to get that equity up here via deferred tax assets and intangibles. Let's go get intangibles from the balance sheets, but I need to times this by minus one. You'll notice the intangibles are shown as negatives. Same for deferred tax assets. Let's do the same thing again. We find that, time's that by minus one, it's now a negative. So what do we need to show here? Well, what we're saying is that the equity on the balance sheet here, well that's the same as your net assets, and that includes things like deferred tax assets and intangibles which the regulator deems to have no value. So in order for us to have 448.6 of equity set aside in case of risk weighted assets, we actually need to have more than that on the balance sheet. So I take my 448.6, subtract off the negatives, meaning I end up with 528 of equity. Now I can read it a little bit easier. Of that 528, you then subtract 36.4, subtract the 43 intangibles to get to your estimated common equity tier one of 448.6. Great. Now let's use base analysis to find out the dividends or capital contribution. I know my beginning balance of equity, it's last year's ending. I know this year's ending, it's what we've just calculated. Shareholders equity of 528. I know my net income, that's from the income statements, 8.9. So I can now calculate whether this bank can pay a dividend or whether it needs a capital contribution. So we start with 407.2 of equity at the start of the year. Unfortunately, we then add on a loss, but we need to get to the end of the year with 528 of equity. So what do I need? I need 129.7 of a capital contribution. Let's copy all of that to the right. We'll see what happens to equity over time. And we see in the first few years it is going up from 528 to 745 to 1022.6 and that's all via capital contributions. But we do see in columns I and J the bank is able to pay a dividend and its equity is still able to go up as well. Basically, it's net income is high enough to afford dividends and to afford the equity level required by the regulator.