FinPeel

Bank P&L

See how lending, funding, fees, costs and credit losses move bank profit.

CURRENCY
Currency sets the display unit; no FX conversion. Bank amounts are annual millions.
Annual P&L · amounts in millions of USD. US tax and CECL context.
Assumptions and sources

The US preset uses the 21% federal corporate rate, before state taxes, credits and entity-specific adjustments. US banks use CECL for expected credit losses; this model takes your annual provision as an input, not a CECL calculation. Currency changes the display unit only; it does not convert amounts. IRS corporate tax ↗ · FDIC CECL reference ↗

Net profit / year$20.5m
View breakdown ↓
Bank · whole P&L

Annual retail-bank illustration. Enter balance-sheet averages and see how funding, fees, cost and credit risk reach net profit.

NET PROFIT
$20.5m
per year
Positive after the assumed impairment and tax charges.
Interest incomeaverage loans × yield$100.0m
Interest expensefunding × cost−$36.0m
Net interest income$64.0m
Fee & commission income$20.0m
Operating income$84.0m
Operating expenses−$38.0m
Pre-provision profit$46.0m
Credit-loss provisionentered annual credit-loss expense−$20.0m
Profit before tax$26.0m
Illustrative taxeditable rate, band and adjustments−$5.46m
Net profit$20.5m
Net interest margin
6.4%
NII ÷ average interest-earning assets
Cost-to-income
45.2%
Operating expenses ÷ operating income
Cost of risk
2.0%
Impairment charge ÷ average loans
Return on equity
15.8%
Net profit ÷ average equity
Risk-adjusted NIM
4.4%
(NII − impairment charge) ÷ earning assets
How expected losses affect this P&L

Under IFRS 9, Stage 1 generally recognises 12-month expected credit losses from initial recognition. Stage 2 moves to lifetime expected losses after a significant increase in credit risk; Stage 3 also uses lifetime losses for credit-impaired assets. That can put a provision on newly booked loans before their interest is fully earned. This model takes the annual impairment charge as an input and does not calculate loan-level stages.

SCENARIOS · ONE MOVE AT A TIME · ANNUAL DELTA VS BASE
Funding cost +100 bps−$7.11m → $13.4m
Loan yield −100 bps−$7.90m → $12.6m
Impairment charge +50%−$7.90m → $12.6m
Digital servicing cuts opex 10%+$3.00m → $23.5m
Fee income +20%+$3.16m → $23.7m
WHAT TO WATCH
Deposit pricing and retention move interest expense; digital fees lift operating income; self-service lowers operating expenses; underwriting and collections affect credit losses. A 100 bp rise in funding cost cuts pre-tax profit by $9.00m at this funding balance. The entered provision is an annual assumption, not a CECL or IFRS 9 forecast.

Model a product P&L · For detailed models: BNPL economics · Merchant acquiring.