Booting System Components...
Live BoC Target
Syncing...
Baseline Margin
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Incremental Value Add
+$0M
Deposit Business P&L (Projection Δ)
Treasury pays the deposit business an FTP credit for the funds raised, offset by customer interest and acquisition bonuses. The book's net margin is what remains. Franchise NPV captures the cross-sell lift on incremental volume.
| + Gross FTP credit (Treasury pays the business) | — |
| − Customer interest (base rate) | — |
| − Acquisition cost (promo bonuses + BoC pass-through) | — |
| − Op cost & capital charge | — |
| = Net deposit margin Δ | — |
| + Franchise NPV lift ($80M / $B incremental volume) | — |
| = Incremental Value Add | — |
Volume Δ
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Active FTP
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Rule of thumb: raising posted rates compresses margin on the WHOLE book (every existing dollar earns less). The volume gained × new margin is rarely enough to offset that. Promo + franchise NPV are typically what tip Value Add positive.