Profitability analysis
A Bank’s income statement can be broadly categorised as under:
The key levers to improving Profitability are to improve Net Interest Margins on each fund based account, increase the share of fee revenue in total revenue, manage operating expenses and control provisions and write offs.
Biz$core Profitability analysis solution enables banks to build such an Income statement at the most granular level – Account, Customer, Branch, Product, Division. This enables banks to analyse profitability trends and identify levers for improvement appropriately.
- Net Revenue from funds – This is derived from the margin between the rate at which the bank lends and the rate at which it borrows
- Net Fee and Commission Income – Income generated from fee based activity net of payments to vendors and partners
- Less Operating Expenses
- Less Provisions on impaired assets
- Less write-offs
- Add Recoveries
- Less depreciation and amortization
The key levers to improving Profitability are to improve Net Interest Margins on each fund based account, increase the share of fee revenue in total revenue, manage operating expenses and control provisions and write offs.
Biz$core Profitability analysis solution enables banks to build such an Income statement at the most granular level – Account, Customer, Branch, Product, Division. This enables banks to analyse profitability trends and identify levers for improvement appropriately.
