Bank Valuation III

In this article I will continue to discuss metrics related to the dividend.  If you are just joining us, review Bank Valuation I, & Bank Valuation II first. In the last two articles, we covered the following financial condition metrics: – Net Interest Margin (NIM) – Return On Assets (ROA) – Loan Loss Reserve, and losses related to the loan portfolio – Return On Equity (ROE) – Profit Margin We also...

Read More

Bank Valuation II

In this article I will continue to discuss other financial condition metrics.  If you are just joining us now, its a good idea to review Bank Valuation I first. Again, what I present here are just the techniques (qualitative & quantitative) that I use & have found useful.  There are many other techniques and methods.  In the last article Bank Valuation I, we covered the following: – Net Interest Margin (NIM) –...

Read More

Bank Valuation I

Given all the financial turmoil of the markets & the banking system.  There are/were opportunities to be found in the bank stocks.  But a price decline no matter how steep does not necessarily mean its a bargain.  So the question that has come up more recently is: “how do I know which bank is good to invest in?” In this series of articles I’ll go over a few simple metrics (quantitative & qualitative) that I...

Read More