tag:blogger.com,1999:blog-235433516644980443.post492725512569459930..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: For Banks, What Is Top Quartile Performance?Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-235433516644980443.post-46591406335979258772018-01-16T09:30:07.103-05:002018-01-16T09:30:07.103-05:00Mike,
I like the NIM after chargeoff number. And ...Mike,<br /><br />I like the NIM after chargeoff number. And the Net Operating Revenue/AA is a long-used ratio that I didn't include solely for the sake of not using a laundry list of ratios. <br /><br />Not sure I agree with the comfortable numbers. I see plenty of banks have serial non-recurring items. And excluding provision is convenient for banks that assume greater credit risk or are experiencing loan problems.<br /><br />Thank you for the comment!<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-805539709241388892018-01-13T12:34:16.935-05:002018-01-13T12:34:16.935-05:00Jeff -- Thanks for sharing. A few suggestions. 1...Jeff -- Thanks for sharing. A few suggestions. 1. Also look at NIM after net charge-offs to evaluate the "net" NIM. 2. Also look at NIE less Non-Int Inc as percent of assets to factor banks with business models less reliant upon assets. 3. ROA and ROE are "comfortable" numbers but have too much noise in them. I suggest an alternative. Net interest income (FTE) plus non-interest income less non-interest expense less net charge-offs. It excludes provision, non-recurring items and taxes. It's a more pure look at bank operations. Still robust, but without the noise.Anonymoushttps://www.blogger.com/profile/07875534656340044646noreply@blogger.com