Tuesday, November 22, 2011

Which bank is better - Part 2

I just forgot to take into account allowance for loan losses. Also included Banrisul figures.
Now BBAS becomes even worse: with more risk it's one that have the least allowance for loan losses!
Or put in other way, BBAS only can get ROE over 20% because its high leverage level and, probably, charges insufficient allowance for losses.



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