Systems analysis of income and expenses of the bank

Using the difference SLR articles associated with the net income (profit) as a whole or separately for revenues and expenditures, identifies specific weight and influence of each source of income for the total amount of profit. Key performance indicators mirror that can be used are listed in Table. 2.7. The most famous and popular tools of financial statements must coefficient analysis. The coefficients allow us to study the relationship between different elements of the set of financial statements by providing information in a convenient form for processing. Key indicators of profitability and costs on the banking institutions listed. In practice, profit management depending on the methods used are the following basic systems analysis in the bank: horizontal, vertical, comparative analysis, market analysis and ratio analysis. The highest value in the analysis of profit is the coefficient and factor analysis techniques profits. Ratio analysis is based on calculating the ratio of different absolute values. In the process of this system are determined by the analysis of the various relative indicators of some aspects of the formation, distribution and use of bank profits. In practice, profit management systems most widely used analytical methods of factor analysis of the coefficients of interest income and interest expense factor models of key revenue and expense rates mirror the analysis of income and expenses of the bank profit research may not be complete without an in-depth analysis of the factor. Category: Fundamentals of Financial Management Bank