Stage 4. Profit Centre Management

We have discussed the concept of value creation and the need for e-Bank to achieve a satisfactory return on equity.

Value creation and ROE are useful tools to evaluate the overall performance of e-Bank. But, as the newly appointed CFO, you need to know which business units of e-Bank create value and which ones require intensive care.

e-Bank is a complex organization that can be visualized as the sum of several business units. We are going to assess separately the profitability of each of these profit centres. ...

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