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Bank Profitability: Decoding the Income Statement

Tom Spencer

How do banks make money? What is a bank really worth? Firstly, by outlining the major items on a bank’s income statement, and then by discussing key ratios that are commonly used to measure profitability and to estimate the market value for banks. Where does this money ultimately go? the spread).

Banking 88
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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

In the previous article , we looked at how banks make money and how they must meet capital requirements. In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. We will examine each in turn. That is, net interest income divided by assets.

Metrics 88
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Global Corporate Banking 2016: The Next-Generation Corporate Bank

BCG

Corporate banking is a tough business. In fact, BCG’s most recent Corporate Banking Performance Benchmarking survey—of 300 corporate banking divisions around the world serving the small, midmarket, and large business segments—found a dramatic split between the best and the rest. Report Monday, December 12, 2016.

Banking 40
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Capital Controls Destroy Greek Small Businesses; Bank Shares Plunge Again; Record Contraction

MishTalk

Panel members commented on the impact of capital controls on demand, and also cited a generally uncertain operating environment which further weighed on sales. Question for Rena Why did you have a Greek bank account? Market Reopens Shares Plunge The stock market collapsed on yesterday following its restricted reopening.

Banking 28
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China Interest Rate Crisis Continues: 7-Day Interest Rate Doubles to 10% in One Week; China Bans Words "Cash Crunch"

MishTalk

The New York Times reports China Rates Approach Crisis Levels Despite Central Bank Measures. The central bank, the People’s Bank of China, said late Friday that it had provided more than 300 billion renminbi, or about $50 billion, in short-term funds to selected banks over a three-day period that week.

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ECB Pulls Out Pea Shooter, Fires, Misses Target

MishTalk

In a widely expected move this morning, ECB president Mario Draghi announced negative interest rates, the first-ever move for a major central bank. The ECB also lowered the benchmark rate from 0.25% to 0.15%. The ECB will also continue to provide shorter-term cheap loans to banks at fixed rates until at least the end of 2016.

Banking 77
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Why an Innovation Culture Matters

Organizational Talent Consulting

The financial and operational rewards for innovation are significant. Top-ranked innovation companies like Apple, Google, and Amazon accelerate out of market disruptions. improved operational productivity. Benchmarking in the process of creating a culture of innovation in hotel companies. improved commercial value.

Culture 52