I remember I've read that the best way to analyse banks profitability is to look at Return over Assets. In so doing you're able to calculate return without considering leverage level (risk).
In the table bellow it's clear that, although all banks have similar returns over equity, ITUB is the most profitable with less risk (leverage/BIS ratio). BBAS on the other hand, can reach similar ROE to private banks just if it leverage too much.
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2 comments:
By the same token, Banrisul has ROA of 2.47%, BIS Ratio of 15.9% and Portfolio/Equity of just 4.5. Looks very nice!
I always told you about banrisul. They have a stable and cheap funding.
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