Page 2 - Bank Financials (I)
P. 2
Return on Equity:
This is the most important metric in all of bank investing. It
measures profitability by dividing a bank’s net income by its
shareholders’ equity; the higher the number, the greater the
return. Normally, you want to see a figure in excess of 10%,
which is generally assumed to mark the threshold between
long-term value creation and destruction.
