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PRODUCTS - ALMAN (Finance Department)
How ALMAN assists in providing Management information
ALMAN has a vast number of standard reports. In addition to the risk and financial reports covered above, ALMAN provides the following type of management information:
Rate spreads
This reports provides interest rate returns and cost on a NACM basis, allowing the user to compare rates on a similar basis, per currency
An example of how it can be applied is to divide Loans and Advances into Performing versus Non-performing in order to obtain a net return position for Loans and Advances.
Executive summary
This report calculates the break even yield on assets in order to have a zero net interest margin. The report also provides the profit differential between interest bearing assets and liabilities.
Ratio Analysis
Due to the facility to define user defined reports, there are no limitations to the number of ratios that can be expressed in ALMAN. Common ratios include:
This reports provides interest rate returns and cost on a NACM basis, allowing the user to compare rates on a similar basis, per currency
An example of how it can be applied is to divide Loans and Advances into Performing versus Non-performing in order to obtain a net return position for Loans and Advances.
Executive summary
This report calculates the break even yield on assets in order to have a zero net interest margin. The report also provides the profit differential between interest bearing assets and liabilities.
Ratio Analysis
Due to the facility to define user defined reports, there are no limitations to the number of ratios that can be expressed in ALMAN. Common ratios include:
| • | Earning Assets/Total Assets |
| • | Total Advances/Total Deposits |
| • | Total Expenses/Total Income |
| • | Return on Assets |
| • | Return on Equity |
Transfer Pricing
ALMAN caters for matched funds transfer pricing (MFTP) - the technique of analysing the interest rate margin broken down into asset margin, liability margin and mismatch margin. This allows for establishing the cost of allocating funds within an organization at rates internal to the organization.
ALMAN caters for matched funds transfer pricing (MFTP) - the technique of analysing the interest rate margin broken down into asset margin, liability margin and mismatch margin. This allows for establishing the cost of allocating funds within an organization at rates internal to the organization.