Is there a line item for a bank's "Core Earnings" excluding provisions for future credit losses?

For bank stocks, PTPP (pre-tax pre-provision) earnings are earnings before taxes and before accounting for the money that a bank sets aside for future credit losses. Many analysts refer to PTPP as “core earnings” because they more closely resemble the cash earnings that a bank produces in any given year before paying tax. The basic idea is to estimate normalized earnings power.

Is this number available?

(Source: John Huber)

I looked into this a bit. CompuStat sends us core earnings, but I’m not sure that it’s the same thing that you’re describing. Certainly, the explanation of it is much more complicated than what you’ve given. As far as I know, we don’t reveal this line right now.

On the other hand, while S&P’s documentation does include a line labelled Reserves, we don’t appear to receive it, which probably means that it’s not part of our data package.

In short, no, the number isn’t available right now.


Currently we exclude banks or insurance companies from our universes.
I was wondering if a Financial Institutions Regulatory Data is a part of P123 data package from FactSet ? (e.g., tier 1 capital, non-preforming loans, time deposits)

Not currently. Adding some industry-specific factors like these is something we’ve been considering.