Profitability is a measure of an organization's profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a lessefficient organization, which must spend more to generate the same profit. Profit is the amount your business gains.  It is a number that remains when you subtract expenses from your revenue. Profitability measures your business's profits and helps you determine your success or failure. In other words profitability is its ability to make a profit. Changes were made in operating methods in an effort to increase profitability.  In these days Banks have new competitors from many industries; they all have one thing in common, the effort to earn more profit. Innovation is very important parts of today´s business as a banker discuss your views and what can be done to make the bank financially sound, discuss the steps you can take to increase the profitability of the bank.

Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter9: Operating Activities
Section: Chapter Questions
Problem 2QE
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Profitability is a measure of an organization's profit relative to its expenses. Organizations that are more efficient will realize more profit as a percentage of its expenses than a lessefficient organization, which must spend more to generate the same profit. Profit is the amount your business gains. 
It is a number that remains when you subtract expenses from your revenue. Profitability measures your business's profits and helps you determine your success or failure. In other words profitability is its ability to make a profit. Changes were made in operating methods in an effort to increase profitability. 
In these days Banks have new competitors from many industries; they all have one thing in common, the effort to earn more profit. Innovation is very important parts of today´s business as a banker discuss your views and what can be done to make the bank financially sound, discuss the steps you can take to increase the profitability of the bank. 

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