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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. 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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Getting Your Deal Done

Martinka Consulting

I told him we would not meet in person until he talked to his wife about it. Have a strong balance sheet. On our first call I asked what his wife thought about it and was told they hadn’t discussed it. On our second call I asked again and got the same answer. Guess what? We never met. Show profit, no matter what your CPA says.