Bank Valuation: Understanding Key Ratios and Metrics
Tom Spencer
OCTOBER 13, 2023
In the previous article , we looked at how banks make money and how they must meet capital requirements. Image 1: Illustrative example of a bank’s net interest income and margin Source: CIBC’s 2022 Annual Report 1.2 There are seven key profitability ratios and two valuation metrics that it is important to understand.
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