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Bank Profitability: Decoding the Income Statement

Tom Spencer

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. The biggest swing in operating expenses is likely to be variable compensation.

Banking 88
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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

Monetary policy is testing its outer limits. The normalisation of the policy stance has hardly started. This has been labelled the “second phase of global liquidity”, to differentiate it from the pre-crisis phase, which was largely centred on banks expanding their cross-border operations.