Profitability System

FORVIS Profitabability System offers financial institutions of all sizes an outsourced profitability analysis solution that is accurate, multi-dimensional, insightful and efficient. Working with key internal business process owners, we help design, develop, implement and support a reconciling profitability system that provides a single viewpoint on customer account-level profitability. Individual aspects of financial institution profitability are integrated so that each view of profitability reconciles directly to both balance sheet and income statement, and each view reconciles with every other view.

The multi-dimensional profitability viewpoints include:

  • Customer
  • Household
  • Product
  • Line of Business
  • Branch / Department
  • Officer
  • Treasury Management

Industry best practices are incorporated into the FORVIS Profitability System, including funds transfer pricing, cost allocation, and fee income recognition. We provide quarterly executive management reports that include easy-to-read data tables and graphics, which can help senior managers to quickly grasp key profitability dynamics aspects.

Profitability insights are provided that touch each profit center of the institution, including:

  • Lending
  • Deposit gathering
  • Trust and wealth management (where applicable)
  • Treasury management
  • Marketing

Each of these profitability insights are further divided by line of business for both commercial and retail lines, and for both loans and deposits and other fee-based services. A number of useful reports and analyses are available covering a wide range of profitability areas. The system is supported by an online analysis and reporting tool delivered alongside our commercial loan pricing software, which allows each internal system user access to profitability results that align with individualized areas of responsibility.

Our profitability consultants are also available to assist with the interpretation of profitability results, which you can apply to help you improve institutional performance.

Profitability Improvement Capabilities

  • Identification of Top 100 Most Profitable Customers
  • Define customer profitability profiles for most / least profitable customer types
  • Rank products in terms of Net Interest Margin, Operating Contribution, Net Profit Dollars
  • Return on Average Balances (ROA) and Return on Equity (ROE / RAROC)
  • Determine Branch Performance and Profit Contribution to Fixed Overhead
  • Manage Loan Officer Portfolio Profitability and Incentive Compensation
  • Target Marketing of Profitable Products to Low Profit Customers
  • Assess Marketing ROI for Product Sales Campaigns

Financial Management Software

  • Individualized Loan & Customer Relationship Analysis
  • Loan Officer Portfolio Management
  • Retail Products Rate Sheet Development
  • Deposit Pricing Analysis
  • Simulation of New Product Profitability
  • Simulation of Product Re-design / Pricing Adjustments (Fee or Rate)

The FORVIS Profitability System is a powerful tool designed to assist financial institutions with understanding and improving their institutional profitability.

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