Analysing A Bank

[robertbanking]

Hello you wonderful and intelligent people that make up this forum. I sincerely hope everything is going well for you.

I kindly wondered please, i know when analysing stocks to invest in, analysing a manufacturing company is fairly simple. In terms of the amount of units sold and looking at profit margins. However i kindly wondered how you analyse a banks profitability, any liabilities on its bank sheets like loans and what are the main segments of a banks profitability please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you become wealthy and have a wonderful life. All the very best to you and enjoy the rest of your weekend.

[dealtn]

Hello you wonderful and intelligent people that make up this forum. I sincerely hope everything is going well for you.

I kindly wondered please, i know when analysing stocks to invest in, analysing a manufacturing company is fairly simple. In terms of the amount of units sold and looking at profit margins. However i kindly wondered how you analyse a banks profitability, any liabilities on its bank sheets like loans and what are the main segments of a banks profitability please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you become wealthy and have a wonderful life. All the very best to you and enjoy the rest of your weekend.

The fact you don't recognise that loans on a banks balance sheet are assets and not liabilities draws me to conclude you are either a bot, yet to learn enough, or a human that shouldn't be anywhere near investing in banks. Odd given your username.

You won't get the benefit of my experience here (or less politely I won't waste my time) until knowing which.

[Urbandreamer]

The fact you don't recognise that loans on a banks balance sheet are assets and not liabilities draws me to conclude you are either a bot, yet to learn enough, or a human that shouldn't be anywhere near investing in banks. Odd given your username.

To be fair, retail banks both borrow and lend, both of which are called loans. When a bank makes a loan, despite the risk of default, it's considered an "asset". When it borrows money, shall we claim by taking deposits or a pure loan from the central bank, it's considered a liability.

I fear that is as far as I get. I have, in the past owned shares in banks and even subscribed to rights issues in one of the banks.
I hadn't a clue what I was doing and having realized that no longer invest in such companies.

Of course some banks do other stuff than retail banking, called investment banking. It's a field of it's own and needs different research. Over years the complexity of a single institution working in multiple fields has been unpopular with investors due to the complexity of research needed. I believe that UK operating retail banks can not be combined with investment banks, though they can both be subsidiaries of the same company.

Many banks also operate in multiple jurisdictions.
For example the fact that the Hong Kong - Shanghai banking corporation (HSBC) operates in the UK, would not mean that it could not operate differently in Asia.

To be blunt it's a can of worms. Steer clear or take a punt. In my opinion research is only going to go so far.

Ps, famously banks can be too big to fail, with the government taking on their liabilities. That doesn't mean that they didn't have liabilities.

[Dod101]

The fact you don't recognise that loans on a banks balance sheet are assets and not liabilities draws me to conclude you are either a bot, yet to learn enough, or a human that shouldn't be anywhere near investing in banks. Odd given your username.

To be fair, retail banks both borrow and lend, both of which are called loans. When a bank makes a loan, despite the risk of default, it's considered an "asset". When it borrows money, shall we claim by taking deposits or a pure loan from the central bank, it's considered a liability.

I fear that is as far as I get. I have, in the past owned shares in banks and even subscribed to rights issues in one of the banks.
I hadn't a clue what I was doing and having realized that no longer invest in such companies.

Of course some banks do other stuff than retail banking, called investment banking. It's a field of it's own and needs different research. Over years the complexity of a single institution working in multiple fields has been unpopular with investors due to the complexity of research needed. I believe that UK operating retail banks can not be combined with investment banks, though they can both be subsidiaries of the same company.

Many banks also operate in multiple jurisdictions.
For example the fact that the Hong Kong - Shanghai banking corporation (HSBC) operates in the UK, would not mean that it could not operate differently in Asia.

To be blunt it's a can of worms. Steer clear or take a punt. In my opinion research is only going to go so far.

Ps, famously banks can be too big to fail, with the government taking on their liabilities. That doesn't mean that they didn't have liabilities.

I could not begin to understand the Balance Sheets of banks nor how to analyse them. I have though held HSBC since about 1990 and in that time have made a lot of money and no doubt lost a lot of money but I feel the most important thing is their funding. HSBC has always been very well funded and as we know did not need any state help during any of the crises, unlike almost all other banks.

Dod

[Bubblesofearth]

Hello you wonderful and intelligent people that make up this forum. I sincerely hope everything is going well for you.

I kindly wondered please, i know when analysing stocks to invest in, analysing a manufacturing company is fairly simple. In terms of the amount of units sold and looking at profit margins. However i kindly wondered how you analyse a banks profitability, any liabilities on its bank sheets like loans and what are the main segments of a banks profitability please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you become wealthy and have a wonderful life. All the very best to you and enjoy the rest of your weekend.

OK, I'm probably going to regret this but feel I have to ask. What are you trying to get out of these boards? You've asked about how to value stocks, currency conversion, wider economic data, recession predictors, S&P predictors, the next bull market, growth stocks, value stocks, DCF analysis, investment criteria, crypto mining valuation, bank valuation, annual report analysis, financial accounts, recession forecasting, small cap stock picking, best country to invest in, Marathon Digital Holdings, Amazon, Ryanair, undervalued stocks and small/medium cap stocks. And that's just in the last few months.

What are you invested in and why? Be interesting to hear a bit about where you actually put your money.

Or are these homework assignments?

BoE

[XFool]

OK, I'm probably going to regret this but feel I have to ask. What are you trying to get out of these boards? You've asked about how to value stocks, currency conversion, wider economic data, recession predictors, S&P predictors, the next bull market, growth stocks, value stocks, DCF analysis, investment criteria, crypto mining valuation, bank valuation, annual report analysis, financial accounts, recession forecasting, small cap stock picking, best country to invest in, Marathon Digital Holdings, Amazon, Ryanair, undervalued stocks and small/medium cap stocks. And that's just in the last few months.

What are you invested in and why? Be interesting to hear a bit about where you actually put your money.

Or are these homework assignments?

[XFool]

Hello you wonderful and intelligent people that make up this forum. I sincerely hope everything is going well for you.
...
Sending you lots of good wishes and i truly hope you become wealthy and have a wonderful life. All the very best to you and enjoy the rest of your weekend.

OK, I'm probably going to regret this but feel I have to ask. What are you trying to get out of these boards?

You've asked about how to value stocks, currency conversion, wider economic data, recession predictors, S&P predictors, the next bull market, growth stocks, value stocks, DCF analysis, investment criteria, crypto mining valuation, bank valuation, annual report analysis, financial accounts, recession forecasting, small cap stock picking, best country to invest in, Marathon Digital Holdings, Amazon, Ryanair, undervalued stocks and small/medium cap stocks. And that's just in the last few months.

And that's just on this site.

[TheMotorcycleBoy]

Hello you wonderful and intelligent people that make up this forum. I sincerely hope everything is going well for you.

I kindly wondered please, i know when analysing stocks to invest in, analysing a manufacturing company is fairly simple. In terms of the amount of units sold and looking at profit margins. However i kindly wondered how you analyse a banks profitability, any liabilities on its bank sheets like loans and what are the main segments of a banks profitability please? If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you become wealthy and have a wonderful life. All the very best to you and enjoy the rest of your weekend.

OK, I'm probably going to regret this but feel I have to ask. What are you trying to get out of these boards? You've asked about how to value stocks, currency conversion, wider economic data, recession predictors, S&P predictors, the next bull market, growth stocks, value stocks, DCF analysis, investment criteria, crypto mining valuation, bank valuation, annual report analysis, financial accounts, recession forecasting, small cap stock picking, best country to invest in, Marathon Digital Holdings, Amazon, Ryanair, undervalued stocks and small/medium cap stocks. And that's just in the last few months.

What are you invested in and why? Be interesting to hear a bit about where you actually put your money.

Or are these homework assignments?

BoE

He's a covert agent sent by Putin to undermine our country starting off at our most treasured internet forum.

Matt