Definition
Pre-Provisioning Operating Profit – The standard profitability checkpoint Indian banks and NBFCs» report between total income and net profit: total income minus operating expenses, calculated before setting aside provisions for bad loans/credit losses and before tax. Functions as this industry's rough equivalent of EBITDA» — a lender's PPOP can look healthy while net profit still swings on provisioning decisions, so the two numbers are worth reading together, not instead of each other. Found In: Income Statement (Indian bank/NBFC results format) Formula:
PPOP = Total Income - Operating Expenses (before provisions and tax)