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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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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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Asset Management – Valuation (Part 2 of 4)

Tom Spencer

Asset managers like to have flexibility via risk management and speculative solutions provided by the trading floors of investment banks. As an illustration, a passive asset manager may have a very large AUM, but the fees that they earn on their product may be 10x lower than that of an equity mutual fund.

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Capital Controls Destroy Greek Small Businesses; Bank Shares Plunge Again; Record Contraction

MishTalk

July saw factory production in Greece contract sharply amid an unprecedented drop in new orders and difficulties in purchasing raw materials. Panel members commented on the impact of capital controls on demand, and also cited a generally uncertain operating environment which further weighed on sales. well below the neutral 50.0

Banking 28
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Hey Janet, It's July 15!

MishTalk

She didn't provide more specifics about the timing of the first hike in the Fed's benchmark rate since 2006, reiterating that it will depend on the progress shown by the economy and labor market. Many economists expect the Fed to act as early as September; others say the central bank is likely delay the move until December or even 2016.

Retail 28
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What's Behind the Plunge in Oil? Winners and Losers? Boon to Spending or Recessionary?

MishTalk

Explaining the Plunge in Oil Slowing global economy, especially China and Europe US production expansion OPEC pumping above quotas – they all cheat Iran embargo failing Increased fuel economy Attitudes of millennials towards cars and driving I give heaviest weight to number one, but they all cascade. No conspiracy theories needed.

Energy 77
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Reality Check: How Fast is China Growing? Global Recession at Hand

MishTalk

Debt matters - $30 Trillion – up $9 trillion since 2008 Debt is 200-300% of GDP counting Shadow Banks. If the average interest rate is 7% (banks 6% shadow banks 10%), economy would need to grow 21% in real terms to service debt. Since that cannot happen, banks cannot make loans without injections from PBOC. million homes.

Banking 28