Publications
Publications
  • October 1990
  • Case
  • HBS Case Collection

Manufacturers Hanover Corp.: Customer Profitability Report

By: Robert S. Kaplan
  • Format:Print
  • | Language:English
  • | Pages:16
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Abstract

Banking company noting declining profitability from its traditional lending activities has started to measure the total profitability of its lending relationships. A loan pricing model estimates the profit and return-on-equity from commercial loans. Additional work was required to recognize the revenue from fee-for-service business for the same customer that is performed by other units in the bank. The case raises the problem of how revenues and expenses from diverse activities can be combined to produce an accurate picture of customer profitability.

Keywords

Investment Return; Revenue; Commercial Banking; Banks and Banking; Customer Value and Value Chain; Banking Industry

Citation

Kaplan, Robert S. "Manufacturers Hanover Corp.: Customer Profitability Report." Harvard Business School Case 191-068, October 1990.

About The Author

Robert S. Kaplan

Accounting and Management
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