Profitability is a decisioning tool, not just a measurement exercise.
Trusted by more than 700 institutions
Keep it simple? More sophistication? You decide.
Institutions arrive at profitability analysis with different goals and different histories. So you set the level of detail for FTP, non-interest income and expense allocations, and capital attribution, and choose the dimensions you analyze.
Organizational profitability covers department, branch, market, and line of business. Instrument profitability adds customer, relationship, officer, and product.
Improve loan and deposit pricing.
Price every deal on a matched-term cost of funds and consistent rules, to a targeted NIM, profit, and RAROC.
Set product and marketing strategy.
Find the real drivers of profitability, then move pricing, fees, operational structure, and cross-sell campaigns to match.
Support branch and channel decisions.
Profitability by branch, region, and line of business, with the usage data behind an expansion or contraction call.
Drive customer interactions.
Give the front line the profitability behind a pricing call, a fee waiver, or a cross-sell, in real time.
Align incentive programs.
Tie compensation to the same profitability metrics the institution itself is judged on.
Optimize resource and capital usage.
Direct resources and capital to the products, teams, and channels that match your goals and create the most value.
A comprehensive approach, with the flexibility to right-size it.
Institutions measure profitability one of two ways: in a spreadsheet, or in a point solution with no integration to other Finance tools. Empyrean gives you two options within the same solution, so moving up isn’t a rebuild.
Better Together: Profitability, Budgeting & Planning, ALM, and CECL.
All four run inside the Empyrean Financial Platform, natively integrated on one data foundation and one cash flow engine. The friction between Treasury and FP&A doesn’t get managed. It goes away.
Everything sits on Empyrean Dataverse®, a centralized data mart holding instrument, GL, transaction, customer, and statistical data in one place. Push FTP results into profitability, or run profitability allocation rules against your budget for a fully allocated budget.
However you combine them, Treasury and FP&A work from the same data and the same rules, and produce outputs that reconcile, quickly and precisely. No re-mapping. No exporting and importing. Your data, your assumptions, your results. Connected by design.
Right-sized to your institution.
Profitability looks different at a $1B community institution, where a small finance team reviews branch and product P&L, than at a $25B regional with a dedicated profitability function and RM-level accountability. One solution fits both.
Finally. Profitability insights without the complexity.
Your board and executive teams recognize the value of profitability analysis. Execution has been the problem. Past initiatives died because building and maintaining the rules took more time than the results were worth, and rules nobody could defend never earned trust.
Empyrean is built differently.
- Start where you are, expand when you’re ready. Organizational profitability takes less data, fewer rules, and less budget than a full instrument build, and still delivers branch, department, market, and line-of-business results. Add customer, relationship, product, and officer profitability later, or start there. Same solution either way.
- Setup is mapping, not building. The FTP, allocation, and capital methods are already defined. You select which ones apply where.
- Built with community institutions, not adapted for them. Designed with direct input from community banks and credit unions.
- Numbers your board accepts. Transparent, defensible allocation rules hold up in the board room and in an exam. And the process lives in a system, not on one analyst’s laptop. When that analyst leaves, the method stays.
Drive profitable growth.
Growth only helps if it creates value and matches your strategy. Every deal, every cross-sell, every branch decision, every dollar spent on efficiency is a profitability decision. You’re already making them. Empyrean gives you the numbers behind them.
- Price on a true cost of funds. FTP puts a matched-term cost of funds behind every loan and deposit pricing decision.
- Find the inefficiency. See where operational costs are eroding value.
- Fix the product mix. Promote what earns, restructure fees on what doesn’t, and grow the lines of business that carry profitability.
- Put resources where value is generated. Direct people and capital to the teams, products, and channels that generate the most value.
And it scales. As you grow or acquire, the process grows with you instead of getting rebuilt. It runs on the same data as Empyrean Budgeting & Planning™, Empyrean ALM®, and Empyrean CECL, so your numbers reconcile to your budget, your balance sheet, and your reserve without a separate exercise.
As simple or as sophisticated as your institution needs.
Empyrean calculates dollar profit contribution and risk-adjusted return on capital (RAROC) at the instrument level, using a library of pre-built allocation methods your team assigns and manages.
They range from simple to advanced, so the approach fits your data, your experience, and your expertise.
Credit risk capital shows how far the range goes.
Handle it three ways:
- Import capital at the instrument level.
- Allocate it by a percentage per product.
- Let Empyrean apply the Basel III standardized or advanced approach and allocate it automatically.
Every option is defensible, and you can increase sophistication later without rebuilding.
Choose which dimensions to analyze:
- Organizational Profitability covers line of business, branch, and market.
- Instrument Profitability enables more granular levels of analysis:
- Customer profitability behind your pricing decisions.
- Officer profitability behind your RM incentive plans.
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- Product profitability behind your product and marketing strategies.
Sized for where you’re going, not just where you are.
Frequently asked questions
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Funds transfer pricing (FTP) assigns an internal cost or credit of funds to every loan and deposit, so you measure the true net interest margin of a product, branch, or customer instead of an average spread. Empyrean supports matched-term and pooled FTP, and when you also run Empyrean ALM, those rates come from the same cash flow engine driving your interest-rate-risk model. Treasury and FP&A end up on one cost of funds by design.
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A spreadsheet can produce an estimate. It can’t produce a matched-term cost of funds, a defensible allocation rule, or an audit trail. The real cost is the monthly export-and-reconcile cycle, the errors that creep in, and a model that one analyst owns. Empyrean replaces that with FTP, income and expense allocation, and capital attribution in one system, plus drill-down to the instrument and a governed workflow that survives staff turnover. For most institutions the bigger expense was never the license. It was decisions made on the wrong number.
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Because the work is different. Most initiatives die in the rule-building, not the reporting: the effort to build and maintain FTP, allocation, and capital methods outruns the value of the output. Empyrean ships those methods pre-built. Your team maps which ones apply where instead of constructing them. And you can start with organizational profitability, prove the value at branch and line-of-business level, and add instrument-level depth once the institution trusts the numbers.
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Empyrean calculates dollar profit contribution and RAROC at the instrument level. Empyrean provides a robust capital allocation framework that can account for Allowance, as well as Operational, Market and Credit Risks that enables you to select the methods that align to your data, experience and expertise. For example, for credit risk capital you can import capital at the instrument level, allocate it by a percentage assigned per product, or apply the Basel III standardized or advanced approach and let Empyrean allocate automatically.
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Yes. FTP is built in as the allocation engine, so instrument-level profitability, income and expense allocation, capital attribution, and reporting all work regardless of your current ALM vendor. The deepest advantage shows up when you also run Empyrean ALM, because FTP and cost of funds then match Treasury by design, with nothing to reconcile. The integration is the multiplier, not the requirement.
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Empyrean imports data from your core, general ledger, and data warehouse, and stores the instrument, transaction, customer, and statistical data in Empyrean Dataverse®. Profitability draws on the same source data as the rest of finance. There’s no rip-and-replace of your core and no manual re-keying between systems.
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Your data stays yours. Empyrean runs on a centralized, access-controlled data repository with governance, user management, and audit trails built into the platform foundation. Data is encrypted in transit and at rest, and the controls behind it are independently audited under SOC 1 and SOC 2.
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Neither. Empyrean Profitability is deeper than a core-system profitability module or a spreadsheet, and more accessible than enterprise platforms built for the largest banks. Institutions from under $1B to over $100B in assets run it. Start with organizational profitability, add instrument-level analysis and multi-LOB governance as you grow, and there’s no threshold where you have to replace the platform.