Economic value added model upon conditions of banking company

Abstract

The content of this article is the application of the economic value added model (EVA) upon the conditions of a banking company. Due to the character of banking business, which is in a different structure of financial sheet, it is not possible to use the standard model EVA for this banking company. The base of this article is the outlined of basic principles of the EVA mode in a non-banking company. Basic specified banking activity dissimilarities are analysed and a directed methodology adjustment of a model such as this, so that it is possible to use it for a banking company.

Keywords

• economic value added
• operating assets
• accounting balance-sheet
• economic balance-sheet
• net ope­rating profit after tax (NOPAT)
• earnings before interest and tax (EBIT)