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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 All else being equal, a higher ROA is better as it indicates stronger profitability and more efficient asset utilization.

Metrics 88
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Unlocking Business Profit Potential

Business Consulting Agency

Review income statements, balance sheets, and cash flow to identify areas that impact profitability. Ensure these goals align with your long-term financial strategy. It might involve cost reduction, pricing optimization, revenue growth, or operational efficiency. Adjust strategies as needed.

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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. Jason Oh is a Senior Associate at Strategy& with a focus on financial services.

Banking 88
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Boosting Business Profitability

Business Consulting Agency

These services offer a wealth of expertise, strategies, and solutions aimed at increasing profitability. This includes scrutinizing income statements, balance sheets, and cash flow statements. They assist in developing competitive strategies to capitalize on market opportunities and gain a competitive edge.

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Where I Think “Agile” is Headed, Part 2: Where Does Management Fit?

Johanna Rothman

This post is about how management fits into agile approaches. Too often, managers think “agile” is for others, specifically teams of people. Teams need to figure out how to manage their WIP, collaborate with the customer, and deliver something small every day. That's a cultural change to self-managing teams.

Agile 69
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M&A deals – benefits and drawbacks

Tom Spencer

Many consulting, corporate strategy, and corporate development roles require the interviewee to go through an M&A case study. Such transactions typically happen between two businesses that are about the same size and which recognize advantages the other offers in terms of increasing sales, efficiencies, and capabilities.

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Customers are your ‘ace in the hole’ during uncertain times

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Positively managing current customers in uncertain economic times can represent easy growth opportunities that cost less than acquiring new customers. Before the economy shifts too much, now is the time to act carefully and build stronger ties with your customers, who are the most important assets in your balance sheets.