商业银行第六章商业银行第六章.pdf

Chapter Six Measuring and Evaluating the Performance of Banks and Their Principal Competitors ©2008 The McGraw-Hill Companies, McGraw-Hill/Irwin All Rights Reserved Value of the Bank’s Stock  E(Dt) P0  t t 0 (1r) McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights 6-2 Bank Management and Financial Services, 7/e Reserved. Value of a Bank’s Stock Rises When: • Expected Dividends Increase • Risk of the Bank Falls • Market Interest Rates Decrease • Combination of Expected Dividend Increase and Risk Decline McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights 6-3 Bank Management and Financial Services, 7/e Reserved. Value of Bank’s Stock if Earnings Growth is Constant D1 P0 r - g McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights 6-4 Bank Management and Financial Services, 7/e Reserved. Key Profitability Ratios in Banking Net Income Return on Equity Capital (ROE) = Total Equity Capital Net Income Return on Assets (ROA) = Total Assets Net Interest Income Net Interest Margin Total Assets