bank profitability加拿大著名咨询公司在建设银行的讲座10.pptVIP

March, 1998 Profitability Pricing Bank Profitability Session 10 Bank Profitability Operating Profitability Asset Utilization Bank Financing Operating Profitability Profit Absolute profit versus relative profit? What are the major drivers of profit? What are the major impediments to earning profits? Profit/Gross Revenues What does this tell us? How can we improve the ratio? Operating Revenue/Operating expense What does this tell us? How can we improve the ratio? Asset Utilization Portfolio Composition Impact on profitability? Impact on risk? Impediments to achieving the composition you desire? Gross revenues/Average total assets What does the ratio tell us? How can you improve the ratio? Bank Financing Sources of borrowed funds Impact on interest expense? Impact on flexibility? Impact on interest rate risk? Impact on liquidity? Equity Forms of equity? Cost of the different forms of equity? Risks of the different forms of equity? Average Assets/Average Equity What does the ratio tell us? Impact on ROE? Impact on financial risk? Breakdown of Bank Profitability ROE = Profit X Gross Revenue X Average Assets Gross Rev Average Assets Average Equity ROE = Profit Margin X Gross Yield X Leverage ROA = Profit Margin X Gross Yield Concept of Sustainable Growth Objective: To develop an internally consistent strategy for bank capital growth while recognizing several constraints . . . Profit margin gross yield generating capabilities Desired level of financial leverage Desired dividend payout ratio Issue: What is the maximum growth rate that a bank can sustain on the basis of internally generated capital, without altering its financial leverage or dividend payout ratios? The Growth Cycle Initial Conditions Assets $_______ Liabilities $_______ Equity $_______ Target leverage ratio ________ Asset growth target ________ Funds required to meet growth target ________ The Growth Cycle (Con’t) Asset Yield ____% $____ Interest Expense ___