Empyrean Profitability

Designed specifically for banks and credit unions to support your measurement and analysis needs, Empyrean Profitability combines sophisticated profitability measurement approaches, with easy-to-use interfaces and analytical tools to support better decision making. In today’s challenging banking environment, defined by inherent volatility, changing customer demands and increased regulatory mandates, the need to understand where your profits are coming from, and how to maximize earnings is paramount. Empyrean Profitability accurately measures instrument-level profitability on a risk-adjusted basis, aggregates and analyzes those results at any level of the organization.

A comprehensive and granular profitability solution

Empyrean Profitability supports all levels of profitability measurement and analysis, including: Customer, Relationship, Officer / RM, Product, Business Unit / LOB, etc. by calculating profitability at the individual instrument level. It provides both accuracy and consistency, as profitability is first measured at the lowest level, and then aggregated to allow analysis for any segment of the institution based on a single set of results. 

In addition, Empyrean Profitability incorporates all components of the profitability equation, including: Net Interest Margin, Non-Interest Income & Expense, Provision, and Capital. Empyrean provides a robust tool set to allow the calculation and attribution of each of these components to the instrument level. With Empyrean Profitability you can not only ensure a complete picture of profitability, but also drive analyses on both a dollar- and risk-adjusted return on capital basis (RAROC).

Accurate, defendable and bottom-up

The foundation of Empyrean Profitability is the calculation of profitability at the instrument level. For any segment, profitability is not based on averages or arbitrary rules and allocations from higher levels, it is simply aggregated from the instrument level. To accomplish this, Empyrean Profitability includes a set of configured tools that allow you to attribute costs, provision for loan loss and capital to the instrument level based on the approaches that make the most sense for your institution. In addition, Empyrean leverages its proven matched-term FTP module to calculate transfer credits and charges based on the individual characteristics of each instrument. Empyrean’s FTP solution enables advanced capabilities related to FTP calculation methods, prepayments, and liquidity as well as other transfer rate adjustments.

Focused decision making

A single solution for profitability across all segments of the financial institution ensures that you get a complete and consistent understanding of the sources of your profitability. It creates a level of buy-in that traditional siloed profitability solutions have struggled to achieve, which is critical to the success of any profitability initiative. That buy-in across the organization, from executives on down, is critical to leveraging profitability results as a decision-making tool. The consistent measurement and unified view of profitability enable better strategic decisions (pricing, promotions, product strategy, etc.), as well as tactical decisions throughout the organization (marketing, cross selling, customer decisions (pricing, fee waivers, etc.). 

By leveraging a consistent data, calculation and reporting framework with other Empyrean risk and performance management solutions, and by providing a sophisticated, yet easy to manage set of rules to calculate profitability across all segments, Empyrean Profitability enables an efficient and defensible profitability measurement process. Empyrean Profitability allows your organization to focus on making decisions that will maximize return for your stakeholders, whether they be public or private shareholders, investors, members, etc., as opposed to focusing on the maintenance and processing of the profitability results.