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Explore banking performance across customers, products, branches and teams. Use your supplied data to understand income changes, investigate portfolio questions and prepare reports with views tailored to your business.
The investment-to-deposit ratio compares a bank's investment securities with its deposits. Work through two reporting dates, reconcile the underlying balances, and separate investment changes from deposit outflows.
Oct 25, 20265 min readThe liquidity coverage ratio compares a bank's eligible liquid-asset buffer with stressed net outflows. Reconcile bank-prepared aggregate inputs, calculate the ratio, and explain a change between reporting dates.
Oct 25, 20265 min readA bank's capital adequacy ratio compares regulatory capital with risk-weighted assets. Work through supplied capital totals, explain a quarterly movement, and reconcile the result to an approved bank workbook.
Oct 24, 20265 min readBank financial statements connect interest income, funding costs, credit losses and cash movements. Work through a reconciled example and the spreadsheet checks that tie earnings to equity and closing cash.
Oct 22, 20266 min readThe Tier 1 risk-based capital ratio divides approved Tier 1 capital by reported risk-weighted assets. Follow a quarterly workbook example, separate numerator and denominator changes, and reconcile the result to its source schedules.
Oct 20, 20266 min readExplain commercial banking income movements from average balances, effective rates and fee products. Build a bridge that separates growth, mix, repricing and funding expense, then reconcile it to the income ledger.
Oct 16, 20265 min readA bank-wide management dashboard connects income, funding balances, and service performance. Follow a monthly example, reconcile the totals, and see what changes when funding expense rises.
Oct 15, 20266 min readThe wholesale funding ratio shows reliance on a stated set of wholesale funding sources. Work the ratio from classified bank balances, reconcile the denominator and compare funding changes without implying a universal regulatory formula.
Oct 15, 20266 min readBalance sheet ratios for banks connect lending, deposit funding, borrowings, available assets and accounting equity. Use a reconciled bank example to compare two quarters, explain the combined movement and assign the follow-up questions.
Oct 14, 20266 min readCalculate a bank's defined liquid assets as a share of total assets using consistent quarterly balances. This worked example shows the classifications, reconciliation, and difference from the liquidity coverage ratio.
Oct 14, 20266 min readCompare portfolio quality, operating sustainability and short-term cash coverage at a US mission-based business lender. Work from loan, expense and cash exports with explicit definitions and checks that reconcile branch results.
Oct 14, 20266 min readA bank leverage ratio compares Tier 1 capital with a defined asset or exposure base. See the US Tier 1 leverage calculation, a supplied-input example, and the distinction from supplementary and risk-based capital ratios.
Oct 13, 20266 min readCompare loan balances, past-due amounts, maturities and product concentration on one reporting date. Use a worked portfolio summary, exact spreadsheet formulas and reconciliation checks.
Oct 13, 20265 min readA bank balance sheet shows the assets a bank holds and the deposits, borrowings and equity that fund them. Compare two periods with a worked operating-bank example, mix ratios and reconciliation checks.
Oct 10, 20265 min readCompare a business borrower's liquidity, leverage and debt-service capacity across reporting periods. Build a consistent workbook, reconcile its inputs and explain why stable headline ratios can hide weaker repayment capacity.
Oct 9, 20266 min readCommercial banking customer segmentation separates business size and sector from product holdings and relationship behavior. Build the groups from customer and product exports, compare quarterly income, and reconcile every relationship to the source files.
Oct 8, 20266 min readCalculate the tangible common equity ratio from a bank's balance sheet and stated intangible adjustments. A two-period example reconciles tangible common equity to tangible assets and explains why the result differs from regulatory capital.
Oct 7, 20266 min readBank return on equity divides net income by average equity capital. Calculate the ratio from financial statements, reconcile it to return on assets and leverage, and compare periods and peers on a consistent basis.
Oct 4, 20266 min readWorking capital in banking needs a different interpretation from trade working capital. Compare a bank's asset availability, funding balances, and cash timing with a reconciled example.
Oct 4, 20265 min readA bank debt-to-equity ratio depends on whether debt means all liabilities, borrowings alone or interest-bearing funding. Compare the definitions on the same bank balances, reconcile them to assets and equity, and explain the movement across quarters.
Oct 1, 20265 min readNet noninterest margin compares fee and other noninterest income with operating expenses against average assets. Work through the signed formula, reconcile the bank finance inputs, and separate operating improvement from balance-sheet growth.
Sep 29, 20265 min readReturn on assets is net income divided by average total assets. This page gives the formula and where its inputs sit in a 10-K, works ROA for five companies from a distributor to a bank, proves each figure with the DuPont split into net margin and asset turnover, explains why bank ROA sits near 1%, and compares ROA with ROE and ROIC.
Sep 25, 20267 min readNet interest margin is a bank's net interest income divided by its average earning assets. This page gives the formula and the inputs from the call report, works one bank through yields, funding costs, NIM and net interest spread, shows what a deposit rate rise does to it, proves the figure two ways, and sets it against FDIC industry data by bank size.
Sep 23, 20266 min readThe cost income ratio compares bank operating expenses with operating revenue. Define the inclusions, calculate a worked example by business unit, and reconcile changes before interpreting efficiency.
Sep 22, 20265 min readThe loan-to-deposit ratio divides a bank's loans by its deposits. This page gives the formula as US regulators report it, compares five banks, shows why the aggregate is not the average of the ratios, follows one bank through four quarters of deposit outflows, and sets the ratio against FDIC data by bank size and the US liquidity rules.
Sep 22, 20266 min readCompare collections cash, workload, costs and aging movements on a consistent opening portfolio. Build a reconciled monthly review from aggregate operational exports without using borrower records.
Sep 11, 20266 min readFP&A in banking connects income and expense budgets to balances, yields and funding costs. Follow a worked monthly bank schedule, reconcile its rate and balance effects, and assign ownership of the resulting variance explanations.
Sep 3, 20266 min readThe asset utilization ratio for banks compares income with average total assets. Work two quarters from income statement and balance sheet rows, define the income convention, and reconcile the result to return on assets.
Sep 2, 20265 min readHow commercial banks should choose analytics software: start from the questions, check the data you hold, ask vendors ten questions, avoid the traps.
Aug 30, 20264 min readBank ratios connect profitability, credit quality, funding and capital. Compare a consistent set across two periods, trace the movements to reported amounts and assign the questions to the right owners.
Aug 27, 20266 min readBank operating leverage compares revenue growth with noninterest expense growth. Calculate the percentage-point spread from finance exports, reconcile the profit change and separate provisions and unusual items.
Aug 26, 20265 min readThe bank efficiency ratio compares noninterest expense with operating revenue. Work the calculation from income and expense lines, reconcile the totals, and explain a change by cost driver.
Aug 20, 20265 min readThe ten relationship KPIs a commercial bank should run on, each with its formula, the export it comes from and what it tells you: products held against the sector norm, lending-only relationships, deposit flight, facility utilization, share of wallet by product, relationship manager coverage at cadence, referrals between business lines, return per relationship, portfolio load against capacity, and primary bank indicators. Also the three measures most commercial banks miss, the figures to drop, the identities, and who owns what.
Aug 20, 20264 min readThe complete lending-only relationship calculation on five borrowers, small enough to check by hand: the loan book with origination type, the deposit ledger and product holdings joined on the customer identifier, the lending-only test, the syndicate participation and the acquired portfolio flagged, the norm from the two full-relationship borrowers of the same size and sector, the value at norm for the lending-only borrowers, and the assertion that every borrower is in the master, so a reader can reproduce every figure and then run it on their own loan book and deposit ledger.
Aug 16, 20263 min readA bank liquidity ratio compares a defined pool of liquid assets with assets or funding. Work through two quarters of bank reports, separate available assets from pledged balances, and interpret the result alongside funding concentration and cash flow.
Aug 14, 20265 min readThe complete deposit flight calculation on five commercial banking relationships, small enough to check by hand: the trailing twelve month-end balances and the median as baseline, the last three months against the baseline and against the same months last year, the decline rule, the transaction split that says whether the money moved to another bank, the business shrank or the season turned, the balances gone, and the assertion that balances reconcile to receipts and payments, so a reader can reproduce every figure and then run it on their own balance file.
Aug 12, 20263 min readTrace commercial banking operating costs to activity volumes and servicing drivers. Reconcile cost pools to the ledger, compare unit costs and allocate service costs to client segments with explicit assumptions.
Aug 10, 20266 min readBuild a commercial credit worksheet for related businesses using ownership shares and matched transfers. Work from supplied cash-generation and debt-service schedules to a combined coverage ratio, with checks against double counting.
Aug 8, 20265 min readAsset quality ratios for banks compare problem loans, recognized losses, and loan allowances. Work through quarterly balances and loss flows, then reconcile the ratios before interpreting the change.
Jul 31, 20266 min readThe ten questions a head of commercial banking puts to the relationship managers, which borrowers hold nothing but the loan, whose balances are leaving before the customer does, which facilities are drawn to the limit and which are paid for and unused, which customers hold fewer products than their sector peers, which lines refer and which only receive, which relationship managers can carry their gap list, which customers moved segment, who has not been contacted at cadence, which products are opened and never used, and what changed, each with the table from the loan book, the balances and the CRM, and the answer to send back.
Jul 30, 20262 min readRate volume mix analysis explains changes in bank interest income and funding expense using average balances and realized rates. Build a spreadsheet bridge that separates balance growth, portfolio mix and rate effects, then reconciles to net interest income.
Jul 26, 20266 min readUCA cash flow converts borrower earnings and working-capital movements into a lending cash-flow schedule. Follow a worked calculation, spreadsheet formulas, debt-service conventions and a reconciliation to cash.
Jul 21, 20266 min readA cross-sell list longer than a relationship manager can work is a report. This guide sets out how a commercial bank measures RM capacity from client counts and contact history, caps the valued gap list per RM at what can be worked in a quarter, and reads the difference between an overloaded RM and an under-covering one.
Jul 20, 20263 min readHow a bank measures referral flow between its commercial, treasury, wealth and card lines from the referral log and the product ledger: referrals made per relationship manager, referrals that became a product within a stated window, revenue attributed, the lines that receive and never send, the owners whose customers hold products in other lines with no logged referral, and the identity that ties referral revenue to the receiving line's ledger.
Jul 19, 20263 min readBank customer profitability combines product income, funding allocations, credit charges and servicing costs for the same relationship. This guide works from banking exports to a reconciled relationship contribution table.
Jul 13, 20265 min readBuild a bank cash flow schedule from loan receipts, deposit maturities and funding payments. Work through maturity buckets, cumulative balances and a deposit-withdrawal scenario, with spreadsheet formulas and reconciliation checks.
Jul 12, 20266 min readBank productivity ratios compare completed work or revenue with staffing and cost. Follow a branch example, reconcile the combined result, and see why labor productivity differs from the bank efficiency ratio.
Jul 11, 20266 min readReconcile bank earnings from interest income, funding costs, fees, operating expense and provision. Compare business lines and periods with a dollar bridge that ties to finance's reported results.
Jul 9, 20266 min readHow a commercial bank finds the borrowers who hold a loan and nothing else, from the loan book and the deposit and product ledgers joined on the customer identifier, values each by the deposits and fees similar full-relationship customers hold, ranks them per relationship manager, and separates the ones worth a conversation from the ones who bank elsewhere by design.
Jul 9, 20263 min readHow a commercial bank reads utilization of its committed credit facilities per customer from the facility register and the balance file: drawn against limit, the trend over four quarters, the customers at persistently low utilization paying commitment fees on lines they do not use, the customers near the limit who will ask for more or go elsewhere, and the relationship reading each pattern supports.
Jul 1, 20263 min readHow a commercial bank finds the relationships whose operating balances have fallen against their own baseline while the accounts remain open, from the daily or month-end balance file: the balance baseline per customer, the decline signal, the split between seasonal, business-driven and moved-elsewhere, and the list per relationship manager ranked by the balances that have gone.
Jun 29, 20262 min readHow a commercial bank measures cross-sell per client and per relationship manager from the ledger: the products each client holds, what clients of that sector and size usually hold, the valued gap, and the roll-up that reconciles to the ledger so finance signs it once.
Jun 27, 20264 min readRisk-adjusted return on equity compares an approved measure of risk-adjusted profit with allocated equity. Work through a bank business-unit comparison, reconcile the adjustments and see how capital allocation changes the answer.
Jun 22, 20266 min readReturn on risk-weighted assets compares an approved earnings measure with reported RWA. This guide states the numerator, averaging and annualization conventions, works a bank business-unit example, and checks that the group ratio reconciles.
Jun 17, 20266 min readCompare business financial statements with tax-return schedules without confusing book income and taxable income. Follow a documented reconciliation, reproduce the spreadsheet formulas, and identify the questions a commercial credit reviewer should resolve.
Jun 12, 20265 min readBanking analytics for your business.
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