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Atle Willems, CFA
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Atle Willems, CFA, is an equity investor with a long-term view investing in undervalued listed shares with solid operational track records and sensible balance sheets. He holds a master's degree in finance from Nottingham University Business School, a bachelor's degree in business... More
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EcPoFi - Economics, Politics, Finance
  • ROE And Equity/Asset Ratio For U.S. Banks 0 comments
    Oct 12, 2012 4:47 AM

    That's a poor return on equity...

    (click to enlarge)

    For highly leveraged balance sheets...

    (click to enlarge)

    Better make sure that is reflected accordingly in the valuations if you consider buying shares in U.S. banks. And don't forget to add a margin of safety for all the known and unknown balance sheet exposures.

    And certainly do not forget all the U.S. treasury and agency securities the banks are sitting on, especially the overvalued long term treasury securities.

    (click to enlarge)

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Themes: Macro View, Banks
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