How To Read Bank Income Statement

Learn how to read income statements and you ll unlock the ability to understand your finances.

How to read bank income statement. But the income statement is usually the first one they ll mention. This is the second article in a series on understanding bank stocks in which i will discuss the basics of a bank income statement. Figures are in rs. The income statement also called a profit and loss statement is one of the major financial statements issued by businesses along with the balance sheet and cash flow statement.

We prepared an income statement example of apple to show you how to read and interpret it. Income statement also known as a profit or loss statement p l is one of the major financial statements that shows all revenues and expenses of a business and how much profit or loss a company has made over a given time period. The income statement also known as the profit and loss p l statement is the financial statement that depicts the revenues expenses and net income generated by an organization over a specific. Identifies the business the financial statement title and the time period summarized by the statement.

The basic suite of financial statements a company produces at least annually consists of the statement of cash flows the balance sheet or statement of financial position and the income statement. Here s how an income statement is usually. Each step down the ladder in an income statement involves the deduction of an expense. Income statements show how much profit a business generated during a specific reporting period and the amount of expenses incurred while earning revenue.

This example financial report is designed for you to read from the top line sales revenue and proceed down to the bottom line net income. How to read a bank s income statement i listed companies present their quarterly results for a few weeks a flurry of little comparable data for all occurs. Reading it before this article will be helpful. The second is that an income statement is based on a few very simple concepts which you already understand.

Sure a glance at your income statement may tell you how much you ve spent in a certain period of time and how much your business has made. Generally if you ask an accountant which financial report is the most important to understand they ll tell you it s the income statement followed by the balance sheet and cash flow report of course. How i learned to stop worrying and love the income statement. The total income earned by the bank is found on the income statement.

In the first article i had discussed the basics of a bank s balance sheet.