Description
The Annual Profitability Study provides key profitability metrics for financial institution owned broker dealers, and banks and credit unions that work with a third-party broker dealer, displayed side-by-side for easy comparison between the two expense structures. The metrics covered by the report include:
Net Income Contribution Margin
(net income before corporate G&A allocation as a percent of gross revenue)
Pre-tax Net Income Margin
(net income after corporate G&A allocation as a percent of gross revenue)
Efficiency Ratio
(direct and allocated expenses divided by revenue)
Efficiency Ratio Fully Loaded
(including G&A allocation)
Deposit Profit Penetration
(net income contribution per million of institution’s self-reported consumer deposits)
Deposit Profit Penetration
(net income contribution per million of institution’s FDIC core deposits / NCUA total shares)
Household Profit Penetration
(net income contribution per institution’s retail household)
