Tuesday, August 9, 2011

Large Banks Compared



They are very similar, here goes some notes:
  • BBAS3 had stock issuance, so earnings growth per share is less than 40.0%
  • BBAS3 has less allowance for loan losses, but it has the minor delinquency ratio and more coverage ratio, so I think it's OK.
  • BBAS3 has the best efficiency ratio, while ITUB3 has the worst. What a surprise!
  • BBDC3 has more than 2/3 of its loan portfolio destined to corporate and almost 30% of its earnings comes from insurance. That's good!
  • Be surprised again: ITUB3 has the worst ROE, while BBAS3 has the best one.
  • Considering  Loan Portfolio/Shareholders’ Equity, we can say that BBAS3 is most leveraged, while ITUB3 is the less one. That could explain the profitability difference.

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