Case type 24
Financial services P&L: banks and insurers
Reading bank and insurer profit: net interest income and margin, fees, cost/income ratio, and credit losses for banks; loss, expense, and combined ratios for insurers.
18 min1 lessonFacts checked against sources on
Key takeaways
- Build a bank's profit from net interest income, fees, costs, and credit losses.
- A bank earns the difference between the interest it receives and pays, plus fees, minus costs and credit losses; an insurer earns if premiums exceed claims and expenses, plus investment income.
- Use net interest margin, cost/income ratio, and cost of risk.
- Build an insurer's underwriting result with loss, expense, and combined ratios.
- Find the driver of a change and the levers to fix it.
By the end you will be able to
- Build a bank's profit from net interest income, fees, costs, and credit losses
- Use net interest margin, cost/income ratio, and cost of risk
- Build an insurer's underwriting result with loss, expense, and combined ratios
- Find the driver of a change and the levers to fix it
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Common questions: Financial services P&L: banks and insurers
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One lesson, about 18 minutes.