Risk-adjusted profitability

Risk-adjusted profitability

A probability used to determine a "sure" expected value (sometimes called a certainty equivalent) that would be equivalent to the actual risky expected value.
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The Smart Loan Express asks the user to input basic information about the proposed loan and then calculates the risk-adjusted profitability of that loan including deposits and fees.
The positive outlook reflects the possibility of an upgrade over the next 12-18 months, if we concluded that Bank RBK was able to maintain strong asset quality and gradually improve its adequate risk-adjusted profitability as it broadens business diversification , while slowly growing its market franchise.
Restore its risk-adjusted profitability and prevent further asset quality deterioration.
Sukuk issuances were expected to rise, if Islamic banks maintained their current risk-adjusted profitability to support their internal capital growth of 8% per annum, and risk-weighted assets grow at 11% per annum.
This discipline leads to increasing net interest margins in the loan port-folio by rating borrowers on risk-adjusted profitability, which ensures the institution is being paid for credit risk associated with different grade loans.
Within "priority" and "average" segments for potential risk-adjusted profitability, the bank can then look deeply at customer profiles to determine the product features, marketing messages and pricing dynamics that will work best with each group.
Aligning interests between shareholders and management can be achieved by more closely linking incentive compensation payments to risk-adjusted profitability of business written, rather than primarily to current reported earnings; empowering internal control and audit functions to bring managers' actions coherent with business strategies; and verifying the consistency of risk taking decisions to approved documented guidelines and processes.
Available immediately to customers, the IBM Cognos Relationship Pricing for Commercial Banking Blueprint is the fifth in a series of Banking Performance Blueprints launched by Cognos since 2006, including solutions for branch performance, corporate and retail banking customer segment performance, and risk-adjusted profitability.
Economic capital and risk-adjusted profitability measures depend on highly judgmental and sensitive assumptions about experience and the correlations between various risk sources such as interest rates and policyholder actions.
It is through this discovery that the manager can understand where money is made and lost, and what can be done to improve risk-adjusted profitability.
Once economic profit is incorporated into the IP model, the company will be able to compare the risk-adjusted profitability and the contribution to shareholder value of each product and business unit in the organization.
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