商业银行第6章

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6-14
Key Profitability Ratios in Banking (cont.)
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Key Topics
• Evaluating performance评估能力
Value of Bank’s Stock
• Value of stock if earnings growth is constant (dividends paid indefinitely to the future):
D1 P0 rg
• Value of stock with a limited time horizon:
r=rf（无风险利率）+premium（风险溢价）
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6-8
Value of the Bank’s Stock取决于未来收益 =每一期分红折现求和
=
t 0 1 r
E ( Dt )
t
the min imum required market rate of return on equity capital given each financial firm ' s perceived level of risk )
6-2
Evaluating the Performance of Commercial Banks
• In this chapter we take a detailed look at the most widely used indicators of the quality and quantity of bank performance.银行绩效的数量和质量的指标。 • The chapter centers on the most important dimensions of performance-profitability and risk. 盈利能力和风险
▫ Stock Values 股票价值 ▫ Profitability Ratios 基于财务报表得到的盈利比率 ▫ Measuring Operating Efficiency
• Size Effects (Comparing Performance) 不同规模银行的绩效对比 • Performance analysis on National City Bank
Net Income Net Pr ofit M arg in Total Operating Re venues
Net Operating M arg in
Total Operating Re venues Total Operating Expenses Total Assets
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ROA and ROE
• ROA is primarily an indicator of managerial
efficiency; it indicates how capable management has
been in converting assets into net earnings. • ROE is a measure of the rate of return flowing to shareholders.
and interest costs.
• Net Noninterest Margin measures the amount of noninterest revenues stemming from the service fees relative to the cost
incurred (including salaries and wages, etc.)
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
NPM, NIM and NNIM
• NPM, NIM and Net Noninterest Margin are efficiency measures, indicating how well management has been able to keep the growth of revenues ahead of rising costs. • NIM measures how large a spread between interest revenues
Chapter Six
Measuring and Evaluating the Performance of Commercial Banks
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Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
▫ maximizing the value of the financial firm’s stock
• Question: Why does commercial banks’ management attempt to maximize the stock value?
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E xp ected stream of future stockholder dividends Value of stock Discount factor (based on
Net Income After Taxes Earnings Per Share Common Equity Shares Outs tan ding
Total Interest Income Total Interest Expense Total Earning Assets Total Interest Bearing Liabilities
• • • • Expected Dividends Increase Risk of the Bank Falls Market Interest Rates Decrease市场的利率降低 Combination of Expected Dividend Increase and Risk Decline
P0
1 r 1 r
1
D1

D2
2
...
1 r 1 r
n
Dn

Pn
n
McGraw-Hill/Irwin Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
McGraw-Hill/Irwin Bank Management and Financial Services, 7/e
© 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
6-7
Value of a Bank’s Stock Rises When:
6-9
Key Profitability Ratios in Banking
• Question :Why do we need to analyze the financial indicators or ratios when evaluating a bank’s performance?
Net Income Return on Equity Capital (ROE) = Total Equity Capital
• The objectives of financial institutions :
▫ maximize the profitability with a level of risk acceptable to the institutions’ owners
• The basic objective of financial management:
McGraw-Hill/Irwin Bank Management and Financial Services, 7/e
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Key Profitability Ratios in Banking (cont.)
(Interest income - Interest expense) Net Interest Income Net Interest Margin Total Assets Total Assets