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Bank Valuation: Understanding Key Ratios and Metrics

Tom Spencer

A higher ratio of fee income implies less traditional credit risk and less balance sheet usage (therefore higher ROE) but also implies greater market risk related to securities portfolios and potentially higher revenue volatility related to volatility in capital markets.

Metrics 88
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Millennials Mired in "Wealth Gap" as Older Americans Gain; Housing Crash Continues to Overshadow Young Families' Balance Sheets

MishTalk

Thanks to Fed printing presses coupled with an extreme case of irrational exuberance, those over 40 years old have recovered losses from the great financial collapse. The average value of housing on young families’ balance sheets remains about 35 percent below its 2007 level, the St. Meanwhile, 71.3 Louis Fed paper estimates.

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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

China Financial Markets. Financial Sense. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 Daily Bell.

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Financial Engineering Chart of the Day: Fed Balance Sheet vs. S&P 500

MishTalk

Fed Balance Sheet vs. S&P 500 I was playing around with some ideas on the St Louis Fed "Fred" database and came up with this. Visit [link] to learn more about wealth management and capital preservation strategies of Sitka Pacific.

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Fed Openly Discusses "Permanently High Balance Sheet"; Lie Finally Admitted

MishTalk

Merits of Not Shrinking the Balloon When the Fed first launched QE, they stated they had the "tools" necessary to shrink their ballooning balance sheet. Once the Federal Reserve lifts interest rates from near zero, likely this week, the focus will turn to the other legacy of the crisis-era policies: the Fed's swollen balance sheet.

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Bank Profitability: Decoding the Income Statement

Tom Spencer

It reflects the bank’s assessment of potential losses it may incur and its commitment to maintaining a strong balance sheet. Monitoring capital adequacy ratios and capital levels is important to assess a bank’s ability to absorb losses and operate in a financially sound manner. Common Equity Tier 1 (CET1) ratio).

Banking 88
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Unlocking Business Profit Potential

Business Consulting Agency

In this article, we’ll outline the essential steps to increase profits with the help of consulting services and emphasize the pivotal role of business consulting agencies in achieving financial success. Review income statements, balance sheets, and cash flow to identify areas that impact profitability.