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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

Efficiency ratio The efficiency ratio measures effective cost management and operational efficiency, and is defined as non-interest expenses divided by revenue. Net interest income (which is generally balance sheet driven) declined to approximately 50% of revenues in recent years from representing almost 80% of revenues in 1980.

Metrics 88
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Kodak’s Downfall Wasn’t About Technology

Harvard Business

Sure, people print nostalgic books and holiday cards, but that volume pales in comparison to Kodak’s heyday. Today the company has annual revenues above $20 billion, competes in healthcare and electronics operations and derives significant revenues from document solutions. The right lessons from Kodak are subtle.

Film 28
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Shockingly Bad Fiscal Health of Chicago (and the Financial Engineering Chicago Uses to Hide that Fact)

MishTalk

The Corporate Fund is Chicago’s general operating fund. Chicago’s property tax revenues do not go into its general operating fund. The objective of these deals was to provide budget relief for the city’s general operating fund in the short term, even if the structure means escalating debt service payments in the long term.

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ECB's €40bn Stimulus Gamble: ECB Pulls Out Bazooka, Cuts Rates, Buys Assets; Will this Stimulate Lending?

MishTalk

Governing Council decided today to lower the interest rate on the main refinancing operations of the Eurosystem by 10 basis points to 0.05% and the rate on the marginal lending facility by 10 basis points to 0.30%. The ECB also cut interest rates to 0.05% (from 0.15%) while offering negative 0.2% on funds parked with the ECB. in 2014, 1.1%

Banking 74
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Blockchain Could Make the Insurance Industry Much More Transparent

Harvard Business

Without this utmost good faith backed by hundreds of years of successful, albeit somewhat slow, claim payments, the global insurance industry would pale in comparison to the more than $5 trillion in premiums it garners today. Herein, as with all insurance, is where the concept of utmost good faith is laid bare.