Author Topic: Well Run Banks  (Read 3931 times)

rukawa

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Re: Well Run Banks
« Reply #10 on: January 08, 2018, 05:25:54 PM »
This year I've decided to start learning more about the different banks out there. It's always been something I've mostly avoided. Does anyone have a good list of well run banks. Would love to start learning and also reading shareholder letters. Market cap size doesn't matter to me.

Why not just keep avoiding it? Can anyone make a good case for investing in banks?


bookie71

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Re: Well Run Banks
« Reply #11 on: January 09, 2018, 08:34:50 AM »
FBAK (First national Bank of Alaska) and NRIm (Northrim) are tow who have survived the up and down Alaska economy.
Always remember, Pigs get fat and hogs get slaughtered.

ourkid8

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Re: Well Run Banks
« Reply #12 on: January 09, 2018, 08:43:17 AM »
Why would you select TD over RBC, is it because of their focus on retail banking?

TD in Canada, Wells and US Bank in the US, Lloyds in the UK, Santander in Europe/Lat Am. One of the Nordic banks is also really good but I can't remember which one at the moment.

Ulrich

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Re: Well Run Banks
« Reply #13 on: January 09, 2018, 08:47:38 AM »
A good and interesting Bank is Chesapeake Bank (Chesapeake Financial Shares).

It earned a return on equity north of 10 % last quarter. With a leverage ratio of 5,6 to 1.

The bank is interesting because they have a mix of 50/50 between interest income and non-intererst income.

They do wealth management and merchant card in a relative big way for their size (market cap 121mio $ ). Looks like a small bank with a great future. It s still trading for under 1,5* tangible book value and i m pretty sure they will do double digit returns on equity in the future. The CEO owns a big chunck of stock and i think Chesapeake has a very good line of  non interest income businesses to make it successful in the long term. The Bank is pretty old but build a pretty good local franchise over the last few years.


rb

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Re: Well Run Banks
« Reply #14 on: January 09, 2018, 10:20:11 AM »
Why would you select TD over RBC, is it because of their focus on retail banking?

TD in Canada, Wells and US Bank in the US, Lloyds in the UK, Santander in Europe/Lat Am. One of the Nordic banks is also really good but I can't remember which one at the moment.
That's part of it yes.

But also TD is more focused and has better risk management. Until a couple of years ago they had a great CEO which didn't hurt either.

Generally you'll see all around the world that retail banks with good risk management tend to outperform.

Dazel

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Re: Well Run Banks
« Reply #15 on: January 09, 2018, 11:49:32 AM »



They will write books about what Moynihan did and is doing at Bank of America.

LC

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Re: Well Run Banks
« Reply #16 on: January 09, 2018, 12:30:05 PM »
Look at this another way: examine what banks were doing in 2005-2007.

Were they returning capital or growing their loans?
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SharperDingaan

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Re: Well Run Banks
« Reply #17 on: January 09, 2018, 01:54:09 PM »
Why would you select TD over RBC, is it because of their focus on retail banking?

TD in Canada, Wells and US Bank in the US, Lloyds in the UK, Santander in Europe/Lat Am. One of the Nordic banks is also really good but I can't remember which one at the moment.
That's part of it yes.

But also TD is more focused and has better risk management. Until a couple of years ago they had a great CEO which didn't hurt either.

Generally you'll see all around the world that retail banks with good risk management tend to outperform.

.... Also because both TD and RBC are paid up partners of the R3 Consortium - with ownership access to the pipes of the blockchain based Corda ledger. They will not be doing anything 'stupid' under OSFIs oversight, and how they 'do'/'report' will give some insight as to how the technology will be implemented.

SD
 

bizaro86

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Re: Well Run Banks
« Reply #18 on: January 09, 2018, 02:43:52 PM »
I have various dealings with all 5 big Canadian banks, and over time I seem to be migrating more and more of it to RBC. Mostly happens when one of the others screws something up, something that has gone smoothly in the past at RBC...

mhdousa

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Re: Well Run Banks
« Reply #19 on: January 09, 2018, 05:02:18 PM »
Not exactly what you're looking for, but our very own Oddballstocks has a new book out that might be helpful:
http://www.oddballstocks.com/2018/01/im-giving-away-all-of-my-bank-investing.html#comment-form