Evaluating Financial Performance Of Banks - 796 Words

Evaluating Financial Performance of Banks When evaluating the financial performance of various banks one must turn to the financial statements that they supply each year to the public as required by the Comptroller of the Currency, the Federal Deposit Insurance Corporation ( FDIC) and the Securities and Exchange Commission (SEC), if it is a publicly traded bank. The annual 10K report that is filed with the SEC along with the corporate websites of the financial institutions that are being looked at are good places to obtain the data necessary to evaluate growth for specific bank and to be able to compare it to other banks. Review the normal ratios that would be looked at for growth, such as return on revenue, operating margin, net income and earnings per share almost when looking to see what type of growth has taken place at a given institution. The three institutions that will be looked at for the scope of this analysis are SunTrust Bank, PNC Bank, and Regions Bank. Each of these institutions are publicly traded and have 10K filings with the SEC. Analysts should never look at ratios alone and the more data one has the better picture one can assimilate to better reflect the true picture of the financial performance of the institution. Caution must be used here as well not to rely heavily on averages since outliers on data can skew averages, may not give an accurate depiction of the actual growth-taking place at a particular bank, and can even be misleading by itself. ToShow MoreRelatedEvaluation Of Financial Position And Performance Of Uk Banking Sector1163 Words   |  5 PagesTopic: Evaluation of Financial Position and Performance of UK Banking Sector with Respect to Liquidity and Profitability Research Background: Several research studies have done not only about the importance of performance evaluation (financial and non financial) of banks but also for the impact of analysis to the economy and various stakeholder groups. 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