Performance Measurements

Performance measurements were taken across all lines of business. Data was taken from KEIS,  and the measurements include:

• Net Income and Capital: Displays Net Income (YTD) as well as Net Income adjusted for Goodwill Amortization. Balances for both Economic and Regulatory Capital are provided. Capital is displayed with both Goodwill included and Goodwill Excluded.
• Return On Equity (ROE): Displays the annualized return on Economic and Regulatory Capital.  This ratio is computed with and without the effects of Goodwill.
• Net Income Adjusted for Capital Charge (or NIACC): Displays annualized Net Income in excess of the cost of capital used to produce this income.   Data is computed with and without the effects of Goodwill using both Economic and Regulatory Capital.

The purpose of viewing performance without goodwill is to look at a business as a going concern.  Goodwill is a sunk cost; it is important for accountability, but not for evaluating line of business entry or exit decisions.

To access the results, single-click on the highlighted MLOB's: