Product Profitability Analysis

The objective of the project was to create a methodology and a tool for conducting replicable analysis of the product costs and identifying their profitability.

Within the project, methodology and practical tools for profitability calculation were developed. The methodology presented specific instructions on incorporating the bank’s resource expenses and the bank’s activity costs into a product profitability analysis tool, infused with the best possible techniques and allocation practices of the bank’s indirect costs, in order to maximize the logical basis for assessment bias and aid the management in the decision-making process.

Pasha Bank is a Baku-based financial institution operating in Azerbaijan, Georgia and Turkey, providing corporate and investment banking services to large and medium-sized enterprises.