To determine the profitability of banks, simply looking at the earnings per share isn't quite enough. It's also important to know how efficiently a bank is using its assets and equity to generate ...

Incredibly simple formula to calculate the profitability of any bank or financial institution. This ratio really helps you understand how banks earn income and from what sectors they earn it from. The ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Liquidity, or the amount of cash or cash-like assets on the balance sheet, is critical for any bank. Banks must meet funding needs for their operations, they must be able to repay their own debts, and ...

The overhead ratio measures how much of a company's total revenue is spent on indirect costs. This metric is useful for ...

To calculate a bank's return on assets, you need to know two pieces of information. First, you need to find the net income, which can be found on the bank's income statement. Next, you need to find ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Chip Stapleton is a Series 7 and Series 66 ...

Bank liquidity is crucial; lack of it can lead to a bank's quick failure. LCR must be 100% or higher, calculated by dividing HQLA by net cash outflow. Investors can assess bank stability by checking ...