overview

FTP is a management accounting technique to understand where profits are emanating such as high yield assets and low cost liabilities, and to help enforce bank’s strategy with operational users. A good FTP system is a must for reasonably sized banks with multiple strategies.

Surya’s FTP product provides banks with ability to measure and evaluate net interest margin and compute profitability across assets and liabilities. It takes complexity out of FTP calculation by considering embedded market risk, using multiple transfer pricing methods.


It takes into consideration accounts, customers, products and business lines factors by facilitating assignment of distinct FTP rates for various pools determined by product and customer mix and dimensions like product groups and customer groups. Dimensions may be extended further depending upon the requirements.

features at a glance

  • ftp_1
    Parameter-driven

    to allow base, yield curve, branch and business line definitions

  • ftp_2
    Flexible methods

    of assigning FTP rules to products, define multiple spreads on base curve, choose calculation methods, and assign an FTP curve

  • ftp_3
    Reports and Analyses

    provides reports and analyses on FTP interest and final FTP rate, profitability, division of spread, business unit FTP and net income calculation

FTP HELPS BANKS TO

  • ftp_help_2

    Fix transfer price using “multiple pools” and “matched maturity” approaches

  • ftp_help_3

    Improve visibility into profitability at multiple product, customer and business unit (branch) levels

  • ftp_help_4

    Identify well-performing and underperforming products, units and investments

  • ftp_help_5

    Incentivize products based on strategy

  • ftp_help_6

    Price complex products, including those with irregular cash flows and indeterminate maturities

CASE STUDIES

Implementation of FTP at Doha Bank

October 8, 2015

Doha Bank is one of the largest commercial banks in the State of Qatar. It was incorporated in 1978.  Doha Bank provides individuals, corporate and institutional clients across Qatar and internationally. The Bank has total asset of USD 20.36 billio…

Read More