Earnings Improvement

How does the phrase "rapid profit" sound?

Managing operating expenses is one of three major components of bank profitability (along with net interest margin and non-interest income). Changes in operating expenses are not only a key component, but can significantly improve your bottom-line in the shortest time period.

In a recent study of 244 banks with expense ratios from 2 to 4%, banks with lower operating expenses ratios consistently correlate with higher bottom line profits and the converse - banks with higher operating expenses consistently correlate with lower profitability.

Kaufman, Rossin & Co. has been assisting banks improve their profitability for more than two decades. We have a proven approach that minimizes bank personnel time and maximizes the results.

Our Rapid Profit Realization uses proven process measures and analytical tools to evaluate major operating expense categories and make recommendations where they can be reduced.

Some of the expenses can be reduced immediately and most can be implemented within 90 days. This can be done in a rapid diagnostic to obtain a level of impact or in a detailed study to drill deep for strategic cost reduction opportunities.

Why hire a consultant?

  • We have the time to concentrate on expense evaluation in a short time period since we have no day-to-day management responsibilities.
  • We focus on the largest opportunities through our extensive knowledge in working with other banks and our banking database.
  • We provide an independent evaluation with no vested interest.

Depending on the size of the bank, we can complete a review in as little as a few weeks.