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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

Profitability ratios Net interest margin (NIM) Efficiency ratio Return on assets (ROA) Fee income to total income Return on equity (ROE) Dividend payout ratio Total shareholder return (TSR) 1.1 Image 1: Illustrative example of a bank’s net interest income and margin Source: CIBC’s 2022 Annual Report 1.2 We will examine each in turn.

Metrics 88
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Bank Profitability: Decoding the Income Statement

Tom Spencer

Bank’s Income Statement It’s important to note that banks have diverse product offerings and client types, and the reporting of business lines such as retail banking, wholesale banking, and wealth management can vary between different banks. The interest rate set by the central bank serves as a benchmark or reference rate for banks.

Banking 88
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You Don’t Need to Be a Silicon Valley Startup to Have a Network-Based Strategy

Harvard Business

For most companies intellectual property is something that sits on their balance sheet. Or it could be indirectly, as Opower does in giving people benchmarking data on energy usage to foster conservation and efficiency. Intellectual capital. Track : Create new KPIs to measure the success and growth of the network.