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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. In this article, we will explore the importance of profitability ratios and valuation metrics that are crucial when analyzing banks. It provides insights into how effectively a bank utilizes shareholder capital to generate profits.

Metrics 88
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Bank Profitability: Decoding the Income Statement

Tom Spencer

How do banks make money? What is a bank really worth? Firstly, by outlining the major items on a bank’s income statement, and then by discussing key ratios that are commonly used to measure profitability and to estimate the market value for banks. Where does this money ultimately go?

Banking 88
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A Sisyphean Struggle: Insights from BCG’s Treasury Benchmarking Survey 2016

BCG

In the two years since The Boston Consulting Group conducted its last ­Treasury Benchmarking Survey, banks have remained locked in a Sisyphean struggle. Low—and, in some cases, negative—­interest rates are a major part of this struggle and have dominated the economic environment for banks.

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Retail Bank Operational and Digital Leaders Reap the Rewards

BCG

BCG’s Retail-Banking Excellence benchmarking study (REBEX) profiles the operational and digital practices and performance of 20 of the world’s leading retail banks, a group of 40 institutions chosen for their size and the strength of their capabilities. We refer to these banks as the “premier league.”

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Banking on Digital Simplicity

BCG

Despite a tentative financial recovery, the retail-banking industry faces unrelenting, disruptive challenges. Banks that hope to prevail must urgently pursue digital simplicity. That mandate for digital simplicity is the central insight emerging from the research behind this sixth edition of BCG’s annual Global Retail Banking report.

Banking 40
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3 Steps to Cultivate an Innovation Culture

Organizational Talent Consulting

A financial services company engaged in investment banking and capital markets estimated the customer benefit of the Space X Falcon 9 reusable rocket. This culture emphasizes efficient, reliable, and cost-effective performance. Benchmarking in the process of creating a culture of innovation in hotel companies. Hjeltnes, A.,

Culture 52
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A Tool to Map Your Next Digital Initiative

Harvard Business

bank, for example, managers had to personally sign the business case for each benefit they were claiming a new CRM system would provide in order to show their commitment to realizing them. In the apparel industry, the benchmark for inventory accuracy is somewhere between 60% and 70%. In a major U.K.

Tools 28