Loan Profitability

Historically loan profitability in financial institutions has been determined by simply calculating the overall yield of a given classification of loans and subtracting the costs. This does not provide for good analysis as to which individual loans, or groups of loans, contribute to bottom line profit.

Treasury Management Services, Inc.'s loan profitability system determines the profitability on each loan using sophisticated costing methods taking into consideration interest rate risk, credit risk, amortized origination costs, amortized loans fees and ongoing servicing costs to get the true financial value of each loan to the institution.

Once each loan's profitability is determined the loans can be sorted by department, loan officer, SIC code or any method desired by the institution to get a better determination of which types of loans represent the greatest contribution to the institution's profitability.

  • Determines loan profitability at the loan detail level
  • Customized to reflect all costs and revenue derived from an individual commercial loan
  • Reports from the system can be "sliced and diced" to provide valuable loan portfolio profitability designed to meet the needs of the user
  • Implemented with minimal interference with existing user technology staff
  • On-going maintenance of the system by Treasury Management Services, Inc. to ensure state-of-the-art technology as it becomes available
  • Can be interfaced with deposit profitability to enable a look at total customer profitability

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Established in 1998, Treasury Management Services, Inc was founded to provide comprehensive treasury services to small and mid-sized financial institutions as a cost-effective means of implementing a high quality ongoing treasury management program.

2004 Treasury Management Services, Inc.