Profitability Analysis

How does the Profitability Analysis module work? 

The Profitability Analysis module uses a unified modeling engine to evaluate funding costs, credit spreads, option spreads, and profit margins for each product and portfolio. Users can:

• Simulate the impact of pricing changes and new product launches on profitability.
• Compare profitability results against Fund Transfer Pricing (FTP) curves and market benchmarks.
• Break down earnings into clear components for greater transparency and accountability.
  
  

Why choose the Profitability Analysis module? 

Comprehensive Profitability Insights
Gain a complete view of how each product contributes to your credit union’s financial health. The module analyzes yield attribution across funding margin, credit spread, and option spread, so you can see exactly where value is created or lost. 

Fund Transfer Pricing (FTP) Analysis 
Breaks down profitability across sectors and funding sources, ensuring accurate pricing and strategic alignment. This helps identify which products generate true economic value versus those that erode margins 

Transparent Cost Analysis
Analyzes total yield into funding costs, option spread, and credit spread to understand true profitability at each product level, providing contributions to net interest margins, total income, and return on equity values. 

Strategic Decision Support
Provides actionable insights to inform pricing, product design, and secondary market strategies, supporting long-term growth.