Successful management of returns

Targeted profitability management and budget control

Frank Kathage

Your Contact Person

Frank Kathage | Senior Manager
Hammer Straße 165
48153 Münster

Financial reporting and analysis functionalities


Integrated and transparent presentation of returns - Profit software module

The substantiated, targeted management of returns requires that management information is prepared in a structured way. perfectly meets this requirement by providing an integrated and transparent presentation of returns as a basis for any analysis. At the push of a button, you may generate suitable analyses or reports and zoom in for more detailed information. Specifically, supports you with the following functionalities:

Standardized reporting system

zeb has put its long-standing project expertise into an extensive report library that is especially tailored to the requirements of executives. Therefore, the standard reports already cover a significant part of the sales and controlling information requirements. The system allows for immediate productive use. The reporting system includes specific analyses as well as comparisons with benchmarks and over time for profit centers, products, customer segments, or individual customers and accounts and also indicates targets achieved by symbols such as traffic lights and trend arrows.

Flexible analyses in all dimensions

Specific return analyses are supported by an intuitive ad-hoc analysis in all three dimensions of market returns (products, customer segments, profit centers), both with standardized and freely definable figures. A drilldown to individual accounts and transactions provides an overview of all details in this context. Individual value destroyers/generators are revealed, providing the basis for identifying the need for action so that you can quickly respond to special questions and analysis requests.

Customization options and handling

By simply managing the bank structures, structural changes (eg in the product or organizational structure) can be precompiled. Different versions of structures ensure the process of the edit mode and the subsequent go-live. All changes are immediately visible and can be evaluated in detail. The simple handling leaves more time for the analysis of the result situation.

basis for efficient cost accounting - Cost Allocation software module

In the context of overall bank management, cost accounting is a starting point for breaking down total costs into the relevant outcome dimensions (e.g. business areas) to enable the identification of value-adding and value-destroying sectors of the bank. The allocation of costs to originators provides the basis for efficient cost accounting.

The cost allocation module is used to represent the costs incurred by cost centers and cost elements and to distribute them with any workflow, with fixed keys or stock prices to the originator. Specifically, - Cost Allocation supports you with the following functionalities:

Simulation of cost allocation enables the distribution of costs of one cost category to various cost centers and also guarantees the settlement of all costs of a cost center to other cost centers. The attribution of costs can be differentiated on the basis of distribution keys. The distribution keys can be individually set or derived from an existing data pool.

The cost allocation of allows a more gradual approach with the distribution of costs in different constitutive steps. In addition to this allocation of costs, temporal boundaries can be established for costs occurring only once a year. These definitions can be laid down manually or automatically. The simulation of different cost allocations allows you to directly examine the proper distribution before the next scheduled distribution runs.

Costs reporting and analysis

The results of cost allocation are both available in reporting and in the ad-hoc analyses of the module for customer business control. Moreover, the costs assigned and allocated can be made available to other information systems.

The cost allocation module is very flexible and, as a result, can also be used for other applications (e.g. allocation of commission income) that, for technical reasons, are only available at a bank-wide level. The user marks a cost allocation as "currently valid" and can create further configurations for simulation purposes. This provides maximum flexibility in designing/developing the in-house accounting concepts.

Funds transfer pricing - FTP software module

With, zeb provides an integrated solution with which the bank can carry out a risk- and profit-oriented pre- and post-calculation - in the sense of a contribution margin calculation. The contribution margins can be flexibly configured on a house-specific basis. The transferability of the results from accounting ensures a uniform evaluation and consideration of targets for accounting and controlling.


The valuation of contracts can be carried out periodically as well as through the present value. The uniform zeb.control calculation kernel ( - FTP) ensures a consistent view of pre- and post-costing. Comprehensive and mature calculation algorithms exist for the calculation of the individual contribution margins.

Net interest income

Integration of interest-like income into the external interest result for reconciliation of the periodic result from accounting and splitting into sales income and treasury contribution:

• Splitting the interest result into Interest Rate 
  Contribution (ZKB), Liquidity Cost Contribution
  (LKB) and Opportunity Interest Contribution
  (FTP / ITP) on the basis of the market interest 
  method with transferability of present value and

• Adoption of base interest rate and liquidity cost
  margin for replication portfolios from
  zeb.control.risk - ALM or another treasury
  solution, including mapping of the necessary
  refinancing of short-term volume fluctuations vs.
  the replication portfolio

Evaluation of additional contribution margins

On the individual contract, additional contribution margin levels can be differentiated:

• Commission contribution

   - Net present commission contribution
     on the basis of the model cash flow
     for the future commission payments 
     with simultaneous periodic presentation
     of the actual commission payments

   - Acceptance of past commission
     payments into the periodic result

• Standard unit costs

   - present value standard unit costs based on
     model cash flow for future process costs
     with simultaneous periodic recognition of
     the accrual costs, differentiated according
     to current contract status

   - Differentiated consideration of process 
     assignments by product and further 
     institution-specific structures
     (e.g., distribution channel)

• Parameter-based risk cost calculation:

   - Risk cost valuation model based
     on PD, LGD and EAD taking into
     account the progression of
     the parameters

   - Determination of future PDs from
     migration matrices or PD vectors

   - periodical contribution based
     upon current exposures
     and risk parameters

• Present value and periodic valuation of indirect 
   costs in the individual contract

In addition to the results of the individual business, further contribution margins, such as the risk result or productivity result are supplemented.

Cash Flow Engine

For the cash flow-based procedures in the contribution margin calculation, delivered cash flows can be taken into account or rolled out on the basis of contract and inventory data in the cash flow engine in the individual contract.

Integrated reporting

In addressee-oriented reporting, these results can be tracked from the management level down to the individual consultant. The results are available at the individual transaction level and can therefore be flexibly aggregated according to a wide variety of criteria (for example, organization or product) for analysis purposes.

Preliminary costing

The pre-calculation within allows the client advisor to make a new business decision on the basis of the present value and periodic contribution margin. To avoid duplication of contract data, the calculation kernel (as a service) can be connected directly under the core system. The results of the contribution margin calculation can be fed back to the core system. Thus, the customer advisor operates only the system known to him for the contract, the computing core of zeb.control determines the results in the background.


Alternatively, contract data can be entered via zeb.control’s own interface of the preliminary cost estimate.