The Best Indicator of Bank Stock Value is ROE vs. COE

IDC Financial Publishing (IDCFP) measures relative profitability of bank holding companies by comparing the IDCFP real return on tangible equity (NOPAT ROE) to our definition of the cost of equity (COE). Margin between ROE and COE (included in the “M” in IDCFP’s unique CAMEL analysis) is a key measure of management.…

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Our Remarkable Record Predicting Bank Failure and Recovery

Updated for 2nd Quarter 2020 ranks IDCFP’s Record in History From 1990 to 2018, there were 1,419 failures of banks. Of these, 90% (1,271 banks) were ranked less than 125 by IDC Financial Publishing (IDCFP) up to 17 months before failure. Further, 73% (1,033 banks) were rated less than 125 by IDCFP…

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How IDC Financial Publishing Predicted a Financial Crisis

More than a decade after the financial crisis of 2008, the financial industry is on more solid ground. There is great opportunity for growth in financial institutions, but we are very mindful of the past and potential risk. It is more important than ever to understand how an institution measures…

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