Integrated Bank Analysis and Valuation

A Practical Guide to the ROIC Methodology

by Sandy Chen


Understanding banks has never been more important - so this book could not be more timely. -Andy Haldane, Executive Director, Financial Stability, Bank of England
Risk and return drive banks. Customers, investors, regulators and politicians need to know both. Does their return on capital exceed their cost of capital – really? And 'how close to the wind are they sailing' to get there? Chen's ROIC achieves this clarity, and enables comparisons, in a way that more typical measures plainly miss. ROIC is a harder metric for bankers to game, so expect some objections to this. -Alan Hughes, former CEO First Direct, General Manager HSBC
Whilst the macro focus in banking has rightly been around capital and liquidity; you should always look for organic growth in any successful business. Understanding how a bank's performance links to its valuation is a must for investors, regulators and bankers and this book shows you how. -Eric Leenders, Executive Director of Retail, British Bankers Association