1. Chief Retail Officer, Chief Financial Officer, and Business Plan Functional Lecture Mike Allen

2. Executive Banking School Objectives Retail Strategy Customer acquisition Branding & marketing Product & pricing Delivery optimization Bank Management Strategy Economic value & risk Capital considerations Analyst influences 360° executive management Financial Strategy Financial analysis Key performance drivers Earnings power Risk considerations 2

3. MarketSim Objectives 3

4. Functional Lecture Objectives  To focus on areas of responsibility  To review decision responsibilities  To review the tool kit of worksheets  To discuss common issues  To answer common questions 4

5. The Role Chief Retail Officer  Sets policy, provides direction  Coordinates the efforts of the group, and interacts with senior management and regulatory authorities  Manages the decision-making process and balances the work load of team members  Ensures assignments and decisions are submitted on time. 5

6. The Role Chief Financial Officer  Develops plans and forecasts for the retail area as a whole  Evaluates cost data on retail activities  Works with other officers to coordinate balanced scorecard and financial results  Prepares other financial analyses as directed by the bank’s Chief Retail Officer. Reminder: Many expectations that you may have for ratios like Efficiency Ratio are quite different when only exploring the Retail Division versus the entire bank. Using the Efficiency Ratio example, a reasonable goal for an entire bank may be 50%. That ratio may be unattainable in a retail division with its heavy reliance on fixed assets and FTE. 6

7. MarketSim Process 7 AnalyzePlanForecastExecuteReview Retail Bank MarketSim Process Flow

8. Analysis 8

9. Balanced Scorecard Index 9

10. Competitive Report 10

11. Current Decisions 11

12. CRA Report 12

13. Balance Sheet 13

14. Income Statement 14

15. Call Report I 15

16. Call Report II 16

17. ROE Decomposition and Key Ratios 17

18. Planning & Forecasting 18

19. CRA Reporting Status 19

20. Management Direction Consensus 20

21. MarketSim Business Plan I 21

22. MarketSim Business Plan II 22

23. MarketSim Business Plan III 23

24. MarketSim Business Plan IV 24

25. MarketSim Business Plan V 25

26. MarketSim Business Plan VI 26

27. MarketSim Business Plan VII 27

28. MarketSim Strategic Planning I 28

29. MarketSim Strategic Planning II 29

30. MarketSim Strategic Plan III 30

31. Retail Bank Condition Consensus 31

32. Risk Assessment of Direction 32

33. BSI Analysis 33

34. Planning & Forecasting 34

35. Finance Report Forecast I 35

36. Finance Report Forecast II 36

37. LLP Forecast Analysis I 37

38. LLP Forecast Analysis II 38

39. NIM Forecast Analysis 39

40. Product NII & Expense Forecast 40

41. Product NII & Expense Worksheet II 41

42. Product NII & Expense Worksheet III 42

43. Execute On Task On Time On Strategy On Budget 43

44. Review Results 44

45. Best Practices Be inclusive Develop consensus Strategy first, detail second Fast and proximate versus to the penny and late 45

46. Today’s Assignment Build the Business Plan! 46

47. Review Course Objectives  To focus on areas of responsibility  To review decision responsibilities  To review the tool kit of worksheets  To discuss common issues  To answer common questions 47

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