“in’Branch Profitability allows you to manage
branch activities which have a direct impact
on profitability (revenues and expenses).”
in'Branch profitability
Overview
There are two important informative purposes for measuring branch profitability. Firstly, knowledge of what costs and revenues wouldbe affected if a particular branch were to be closed is crucial. Secondly, evaluating the performance of a branch based on profitabilitywill allow one to also assess the performance of branch managers. These purposes would seem to argue for not assigning assets to a branch,but rather concentrating on core deposits and other activities directly related to the existence of the branch and over which branchmanagement has some control.
in’ Branch Profitability allows you to manage branch activities which have a direct impact on profitability (revenues and expenses). The solution allows you to determine whether:
1. The activity has either revenue or expense (or both) associated with it
2. The revenue or expense is related to a one-shot occurrence or an ongoing activity.
3. The revenue or expense is based on a fixed dollar amount per item or related to some dollar balance amount.
KEY Benefits
- Gain insightful information of branch performance through effective analytics
- Manage branch manager performance through profitability calculation tools
- Monitor key profitability-driven activities while evaluating their behavior and nature
