OPTIMIZING THE PROFIT OF HAMPSHIRE & KENT BANK
Student Number – 30612322
Module Code – MANG6122
Word Count - 1552
TRANSMITTAL LETTER
SHIELD CONSULTANTS
Above Bar street
Southampton, UK
21st November 2018
Mr. Anthony Edward Stark
Bank Manager
The Hampshire & Kent Bank
Southampton
Dear Mr. Stark
As requested, this report gives a clear understanding about the transfer limit at which the amount accrued in the Hampshire & Kent bank to be transferred to the Central Reserve Bank in order to maximize the Hampshire & Kent Bank’s income. It also has the information about the model I used, the comparisons that I have made at different transfer limits to enhance the profit of the Hampshire & Kent bank. Also, I have attached the graphs that I got from the results to give you a better picture about how the average profit varies at different transfer limits.
I hope you find this report satisfactory.
Sincerely yours,
Nick Fury
REPORT ON HOW TO OPTIMIZE PROFIT OF HAMPSIRE & KENT BANK
Presented to
Mr. Anthony Edward Stark
Managing Director
The Hampshire & Kent Bank
Southampton, UK
Presented by
Nick Fury
Shield Consultants
Above Bar street
Southampton, UK
21st November 2018
EXECUTIVE SUMMARY:
This report gives you a clear idea about what I have done in the model and what assumptions I have made to make the best use of fixing the transfer limit. So that the Hampshire & Kent bank’s profit can be maximized. As there is an uncertain variable such as the daily deposit cash flow is involved, I have used @risk software to create the model representing real life scenarios to test it and concluded my transfer limit to £800,000. While running the model for several iterations I have assumed that the cost of transfer incurred on the deposit need to be subtracted before transferring it to the Central Reserve bank and I have assumed that the rest of the variables to remain constant throughout the period. The whole process is done for a period of 365 days so that we can get a brief understanding about what happens every day. After, successfully running the model I can assure 95% that by transferring the accrued amount in Hampshire & Kent Bank to the Central Reserve Bank at a transfer limit £800,000 an average profit of £257,909 can be made.
Table of Contents
Sl. No
Title
Page Number
1
Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5
2
Description of the Model - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5
3
Assumptions - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
5
4
Criteria for evaluation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6
5
Findings - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
6
6
Comparison - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
7
7
Limitations - - - - - - - - - - - - - - - -...