article thumbnail

Bank Profitability: Decoding the Income Statement

Tom Spencer

For the sake of simplicity, we will present the information in a consolidated manner. Operating expenses Operating or non-interest expenses will be affected by many moving parts such as wages, benefits, infrastructure, and information technology. Image 2: Illustrative example of a bank’s non-interest income 3.

Banking 88
article thumbnail

Why Financial Statements Don’t Work for Digital Companies

Harvard Business

This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. Let’s first look at the balance sheet. Therefore, the balance sheets of physical and digital companies present entirely different pictures.