Cost Allocation
Transparent cost decomposition with ABC methodology and card cost analysis
Portfolio Cost Structure
Funds Transfer Cost€24.79M
Operating Cost (ABC)€6.08M
Cost of Risk€8.79M
Card / Payment Costs€1.13M
Top 10 Clients by Card / Payment Cost
Funds Transfer Pricing (FTP)
- Internal pricing mechanism separating interest rate risk from credit spread
- Asset FTP rate applied to loan balances (cost of funding)
- Liability FTP rate applied to deposit balances (value of funding)
- NII after FTP = Loan Spread + Deposit Value Contribution
Activity-Based Costing (ABC)
- Base servicing cost per client + per-product overhead
- Transaction-driven cost: €1.20 per transaction
- RM coverage cost: tiered by coverage level (€15K–€120K)
- Complexity surcharge: €8K per complexity score point
Cost of Risk
- Expected loss calculated as Loan Balance × Expected Loss Rate
- EL rate derived from PD × LGD adjusted for collateral
- Reflects credit quality and portfolio concentration risk
- Higher risk grades → proportionally higher cost allocation
Visa / Mastercard Allocation
- Scheme fees: 0.18% of payment volume (interchange + scheme)
- Processing cost: 0.08% of payment volume
- Per-transaction fee: €0.12 per card transaction
- Total card cost allocated directly to each client relationship