A BCG Company

Profitability Analysis

The holistic benchmark focuses on the total cost of ownership (TCO) relative to revenues to identify cross-product cost/profit opportunities and analyze the potential impacts of business decisions and market conditions. The benchmark is enriched by Expand’s full suite of detailed quantitative benchmarks and revenue analyses.

Who is it for?

COOs, Heads of Trading


  • Annual report


The product focuses on Capital Markets with deep-dives for each business line (Equities, FX, etc.), and examines the direct/allocated IT, Operations and Corporate functions components of the cost stack.

Why do it?

In an environment of reduced revenues and margins squeezed by electronification, the benchmark enables firms to focus attention on areas with real impact on profit. The focused attention helps minimize the detrimental effect on the business that some blanket cuts can have.

Additionally, the product helps improve understanding of the drivers of overall cost, productivity and profitability in your business, therefore informing strategic decision making and highlighting potential levers to help improve efficiency.

What you get

  • Computation of profit pool and front-to-back cost-to-income ratios by business line
  • Breakdown of front-to-back costs for each asset-class
  • Human capital view of front and back office headcounts and average fully-loaded FTE costs
  • Additional analysis on areas such as productivity and risk weighted assets

Client commitment

Firms are required to submit extracts from their systems for the relevant data requirements in order to conduct the analysis.

In order to ensure like-for-like comparison between peers, Expand will conduct the mapping and modelling of all costs to a normalized taxonomy framework in coordination with the client.

Related products

This benchmark should be used to identify key areas for improvement. Follow-on granular level analysis can be conducted using a variety of our Intensity Analyses covering Technology, Operations or Corporate Functions.

Next Steps

To find out more, please use the form below. Alternatively, contact your local office using the below phone numbers.


Tel: +44 (0)20 7337 2100


Tel: +1 (212) 913 9270


Tel: +65 6823 1460


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