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.