There are literally hundreds of metrics investors can reference to assess the quality of a bank stock. Fool contributor John Maxfield wades through them and narrows the list down to the three that he always looks at: (1) interest rate margin, (2) ratio of non-interest income to non-interest expenses, and (3) non-current loan ratio.
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The article 3 Important Bank Metrics originally appeared on Fool.com.
John Maxfield owns shares of Bank of America. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo & Company and has the following options: short OCT 2012 $33.00 puts on Wells Fargo and short OCT 2012 $36.00 calls on Wells Fargo. Motley Fool newsletter services recommend Wells Fargo. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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