Pricing Opportunity Profitability Banner
You can use the banner at the top of the Pricing Opportunity page to view profitability metrics for the current relationship.
When instruments are switched in and out of opportunity, the projected values adjust immediately. The information in this banner helps you gauge the profitability of relationships as instruments mature.
Depending on the setup, only return on equity (ROE), only return on assets (ROA), or both ROE and ROA information appears in the banner.
Last 12 Months
These metrics show the historical profitability of the relationship with all the instruments that it comprises. For historical values, all the instruments are calculated whether they are In Opportunity or Out of Opportunity.
- Historical Profit
- This value is the rolling 12-month profit at the relationship level for the 12-month period prior to and including the current time frame in the application. For example, if the last processed month is September of the current year, then the Historical Profit includes the time from October of the previous year to September of the current year.
- Historical ROE
- This value is the rolling 12-month ROE at the relationship level for the 12-month period prior to and including the current time frame in the application.
- Historical ROA
- This value is the rolling 12-month ROA at the relationship level for the 12-month period prior to and including the current time frame in the application.
Next 12 Months
These metrics show the profitability for the coming year for the instruments selected as In Opportunity. These instruments are new businesses or existing loans that are up for renewal.
- Projected Profit
- For instruments selected as In Opportunity, this value is the projected profit for the 12-month period extending out from the current month. For example, if a loan is a 10-year loan and the current month is month 38 (over three years into the loan), then the profit reflected is for months 39 through 50.
- Projected ROE
- For instruments selected as In Opportunity, this value is the projected ROE for the next 12-month period from the current month.
- Projected ROA
- For instruments selected as In Opportunity, this value is the projected ROA for the next 12-month period from the current month.
Lifetime
These metrics show the profitability for the life of the instruments selected as In Opportunity. These metrics are used as decision-making tools for new businesses and renewals to see how they affect the ROE and/or the ROA of the relationship.
- Projected Profit
- For instruments selected as In Opportunity, this value is the weighted annualized projected profit for the life of the instrument based on the original structure of the instrument.
- Projected ROE
- For instruments selected as In Opportunity, this value is the projected ROE for the life of the instrument.
- Target ROE
- This value is the Relationship Target ROE value entered on the page.
- Projected ROA
- For instruments selected as In Opportunity, this value is the projected ROA for the life of the instrument.
- Target ROA
- This value is the Relationship Target ROA value entered on the page.