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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. It is not a useful metric for comparing different business lines.

Metrics 88
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Retail Bank Operational and Digital Leaders Reap the Rewards

BCG

BCG’s Retail-Banking Excellence benchmarking study (REBEX) profiles the operational and digital practices and performance of 20 of the world’s leading retail banks, a group of 40 institutions chosen for their size and the strength of their capabilities. We refer to these banks as the “premier league.”

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Should a CEO’s Bonus Be Based on Financial Performance Alone?

Harvard Business

On November 9, 2016, the shareholders of Australia’s largest company, and the world’s tenth-largest bank , revolted. Other firms have ventured down this path, including the conglomerate Wesfarmers , with its 200,000-plus staff, and the global hospital operator Ramsay Health Care.

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Show report: CX and EX inextricably linked, with empathy as the glue

1 to 1

airline in 2022 by the Wall Street Journal , which scores airlines on seven operations and customer metrics. “We In financial services, for example, real-time data about behavioral trends would reveal to business leaders that high net worth customers are switching banks right now, because they are chasing high interest rates, she said.

Report 26
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The Case Against Pay Transparency

Harvard Business

My colleague Tomasz Obloj, of HEC Paris, and I recently examined the effects of an awards program implemented at a European bank selling small consumer loans. The awards program invited each of the bank’s 164 outlets to compete for an all-expenses-paid, weeklong vacation to an exotic resort.