What does consolidation — credit on funds provided mean?

The internal interest credit given to a business unit for the funds it provides to the bank.

How do you interpret consolidation — credit on funds provided?

An increase indicates the segment is successfully generating more valuable funding for the bank.

How does consolidation — credit on funds provided compare across companies?

Common in banking internal funds transfer pricing (FTP) frameworks to incentivize deposit growth.

East-West Bancorp EWBC Consolidation — Credit On Funds Provided

Discontinued — last reported Q2 '16

Similar metrics at other companies

WALOperating Segments — Excess Funds Provided Used Segment Basis

-$2B—

WALConsumer Related Segment — Interest Expense, Funds Transfer Pricing

-$305.4M-13.1%

WALCorporate & Other — Interest Expense, Funds Transfer Pricing

$183.23M+113%

WALCorporate And Other Segment — Interest Expense, Funds Transfer Pricing

$235.7M+70.3%

WALInterest Expense, Funds Transfer Pricing

$0—

VLYCommercial Banking — Internal transfer expense (income)

$121.05M-0.7%

Other financials

Income statement

See full

Revenue$773.7M+11.8%

Net income$357.8M+23.3%

EPS (diluted)$2.57+23.6%

Balance sheet

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Cash & equivalents$4.4B+28.7%

Total debt$184.3M+49.8%

Total equity$9.0B+13.5%

Total assets$82.9B+8.8%

Cash flow

See full

Operating cash flow$428.6M+54.2%

CapEx$99.0M+3,852%

Free cash flow$329.6M+19.7%

Valuation

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Market cap$17.37B+18.2%

Enterprise value$13.12B+14.7%

P/E12.5×-0.1×

P/S5.8×+0.2×

Profitability

See full

Net margin46.2%+2.2pp

FCF margin58%—

Returns & leverage

See full

Return on equity16.5%+0.8pp

Debt / equity0×0.0×

Where this comes from

Reported directly by East-West Bancorp in its filing.

Tagged under the XBRL concept ewbc:CreditOnFundsProvided.

The official record: East-West Bancorp’s 10-Q, filed August 5, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does consolidation — credit on funds provided mean?: The internal interest credit given to a business unit for the funds it provides to the bank.
How do you interpret consolidation — credit on funds provided?: An increase indicates the segment is successfully generating more valuable funding for the bank.
How does consolidation — credit on funds provided compare across companies?: Common in banking internal funds transfer pricing (FTP) frameworks to incentivize deposit growth.