What Is Pre-Provision Operating Profit—PPOP?

Pre-provision operating profit—PPOP—is a measure of a bank's earnings before loan-loss provisions and before taxes. It is a useful metric for evaluating a bank's profitability and performance, as it excludes items that are not under the control of management. Is PBT the same as net profit? PBT, or profit before tax, is an accounting measure that calculates net profit before taxes are deducted. Net profit, on the other hand, is the final profit figure that is reported after all expenses, including taxes, have been deducted. How many types of provisions are there in accounting? There are two types of provisions in accounting:

1. Accruals

2. Deferrals What is bank provision result? A bank provision result is the result of a bank's analysis of its loans and other assets to determine whether they are impaired and, if so, to estimate the amount of the impairment.

What is an example of a provision?

A provision in banking refers to an amount set aside by a bank as a reserve in order to cover any potential losses that may be incurred. Provisions are typically made in relation to loans that are considered to be at risk of default, and the amount of the provision is based on the expected loss that the bank anticipates incurring should the loan default.

What is pre provisioning?

Pre provisioning is a term used in banking to refer to the practice of setting aside funds in anticipation of future losses. This practice is typically used by banks in order to comply with regulatory requirements, such as the Basel III accord, which stipulates that banks must maintain a certain level of loss reserves. Pre provisioning can also be used as a risk management tool, helping to ensure that a bank has sufficient funds available to cover potential loan losses.