Banking Sector ROE by Country 2011

[PlanMaestro]

From BCG

 

http://farm9.staticflickr.com/8185/8075805609_4ea929b1bb.jpg

[PlanMaestro]

Total shareholder return 2007-2011 by country

 

http://farm9.staticflickr.com/8194/8075791999_9be5e96971.jpg

[SharperDingaan]

If you accept that banking is cyclical, look closer at the Canadian Sched-A Banks.

 

If you accept that over the long-term, bank dividends should grow by (inflation + GDP)x leverage x payout ratio; it gets even better. Accept that the Canadian regulator largely assures they will seldom be leading edge, & that the $C is actually a petro-currency - & it gets better still.

 

Worst kept secret in Canada ;)

 

 

 

 

 

[meiroy]

 

In some countries the declared ROE is completely fake.  There should be a similar chart describing the quality of the data according to countries, wonder how that would look like.

 

 

[treasurehunt]

Assuming the numbers are reliable, there are a couple of shockers here for me:

 

1) Japanese banks had an ROE of 7.3% from 2007 to 2011. This is much higher than I would have guessed. Maybe this implies that US banks will do okay even in a prolonged low-rate environment with global instability?

 

2) The return on Spanish banks from 2007 to 2011 is better than the return on US banks during the same period. I would have guessed that US banks did better than Spanish banks over this period.

[PlanMaestro]

Assuming the numbers are reliable, there are a couple of shockers here for me:

 

1) Japanese banks had an ROE of 7.3% from 2007 to 2011. This is much higher than I would have guessed. Maybe this implies that US banks will do okay even in a prolonged low-rate environment with global instability?

 

2) The return on Spanish banks from 2007 to 2011 is better than the return on US banks during the same period. I would have guessed that US banks did better than Spanish banks over this period.

 

1) And their cost of capital was way low, so a 7% is not bad at all ... they should be worth at least book value

 

2) Spanish banks are mainly composed of Santander and BBVA that have huge international operation that have been softening the blows in Spain.