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Bank Profitability: Decoding the Income Statement

Tom Spencer

Operating expenses Operating or non-interest expenses will be affected by many moving parts such as wages, benefits, infrastructure, and information technology. It reflects the bank’s assessment of potential losses it may incur and its commitment to maintaining a strong balance sheet.

Banking 88
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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

Why do investors react negatively to financial statement losses for an industrial firm but disregard such losses for a digital firm? In the 2016 book The End of Accounting , NYU Stern Professor Baruch Lev claimed that over the last 100 years or so, financial reports have become less useful in capital market decisions.