profitability measurment

Banking Profitability Roundup

Performance Measurement, TKG Perspectives

End of year brings banking industry summaries. Some are very good, such as this one written by Jeff Davis of Mercer Capital (Mercer). In his summary, you’ll find charts and trends for net interest margin (NIM), pre-tax ROA, and fee income for whole institutions, and broken out by size cohorts….

Risk Adjusted Return on Capital (RAROC) for Financial Institutions

How do you measure the profitability of lines of business, products, or customers? The simplest form is in dollars. But does that measure the profits against the investment required to generate those profits? For example, the riskiest banking products most likely deliver the greatest dollar profits, all other things being…