How to Analyzing Banks

Описание: Want to judge a bank? Ask this question: ‘How well do they use their assets.

In banks:
– Raw material = public deposits
– Revenue = loan interest

So P/E ratio doesn’t show the full picture.
The real hero is Return on Assets (ROA).

Banks with higher ROA = more efficient = get premium valuation.

Don’t just track how much banks earn. Track how smartly they use your money.