Tom Spencer

OCTOBER 13, 2023

Image 1: Illustrative example of a bank’s net interest income and margin Source: CIBC’s 2022 Annual Report 1.2 As an example, corporate lending is characterized by very low efficiency ratios (a good thing) but also low ROE given the large amount of capital charges. It is not a useful metric for comparing different business lines.

Metrics 88

Metrics Banking Balance Sheet Efficiency 88

Tom Spencer

OCTOBER 6, 2023

A bank’s income statement can be simplified into five main line items: Net interest income Non-interest income Operating expenses Provision for credit losses (PCL) Tax Image 1: Illustrative example of a bank’s income statement Source: CIBC’s 2022 Annual Report 1. Image 2: Illustrative example of a bank’s non-interest income 3.

Banking 88

Banking Balance Sheet Operations Financial 88

1 to 1

JULY 29, 2022

By 2025, smart workflows and seamless interactions among humans and machines will be as standard as the corporate balance sheet, and most employees will use data to optimize nearly every aspect of their work, predicts McKinsey & Company.

Data 29

Data Apparel Automotive Balance Sheet 29

MishTalk

JULY 11, 2014

Historical evidence shows that this rarely happens following a balance sheet recession. Such episodes often coincide with banking crises, which in turn tend to go hand in hand with much deeper recessions – balance sheet recessions – than those that characterise the average business cycle.

Balance Sheet 74

Balance Sheet Financial Banking Policies 74

MishTalk

DECEMBER 26, 2014

While the benchmark deposit rate was officially lowered from 3.00% to 2.75%, the upper limit that banks can pay for deposits remained unchanged at 3.30%. It may seem strange to have both a benchmark rate and a “floating range” that establishes a cap, instead of just setting a cap, as was the case until very recently.

Banking 71

Banking System Benchmarking Finance 71

Harvard Business

JULY 14, 2017

As an example, hotel chains like Marriott or Hilton create value chains that deliver rooms and related services to their customers. For most companies intellectual property is something that sits on their balance sheet. In contrast, Airbnb creates a network that connects hosts and guests.

Intellectual Property 28

Intellectual Property Strategy Strategy Strategy& 28

Harvard Business

JUNE 20, 2016

My guess is that while a poor balance sheet might cause restless sleep, it’s the thought of an incorrectly reported balance sheet that brings on night terrors. I’m not against benchmarking and norming. While benchmarks are useful inputs for compensation decisions, they shouldn’t be a straitjacket.

Benchmarking 30

Benchmarking Company Balance Sheet Intellectual Property 30