Profitability Forecast for Assessment of Investment Project in Banking
Profitability Forecast for Assessment of Investment Project in Banking

Author(s): Piotr Miszczyński
Subject(s): Business Economy / Management, Evaluation research, Accounting - Business Administration
Published by: Masarykova univerzita nakladatelství
Keywords: simulation metamodel; profitability prognosis; investment valuation; bank project evaluation;
Summary/Abstract: The aim of this paper is to present the results of evaluation of a bank investment project. The main result of investment in a new banking project is the so-called a customer portfolio that has a suitable risk structure and profitability. Therefore it is important to estimate the profitability of current sales of currently developed banking products. Thanks to the fast and accurate ex ante profitability estimation tool, an ongoing assessment of the profitability of new banking products, especially loans, is possible. On this basis, price and risk pricing decisions allows to create a reasonably profitable portfolio that affects the value of the bank being built. In the paper there are the sample results of the metamodel profitability simulation tool presented and the accuracy measures of the obtained results.

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