Updated for 1st Quarter 2021 Ranks IDC Financial Publishing’s Record in History IDCFP’s CAMEL safety ratings of banks, savings institutions, credit unions range from 300 (the top grade attainable) to 1 (the lowest). From the early 1990’s, through today, institutions using our CAMEL ranks determined that ranks less than 125 were deemed…
Bank stocks benefit from accelerating earnings growth over the next few years due to 1) A secular rise in return in equity (ROE), and 2) The base of ROE, tangible book value per share (TBVPS), growing at 10% or more a year. A rising ROE with a 10% or more…
The U.S. 10-year is expected to rise significantly, led by the breakout of the German 10-year yield from its inverse head-and-shoulder pattern from 2019 to date. The German 10-year broke out to -0.17% recently, and is forecast to rise to zero, and then +0.40% in 2021, leading to U.S. 10-year…
The combined effect of bank leverage forecasts a 54% price appreciation for the index of large banks (BKX) over the next year from the closing stock price on April 23, 2021. Operating Leverage from an Increase in the Operating Return After Tax (ROEA) ROEA is the operating return after taxes, but before…
The Components of CAMEL Out of the 1,750 institutions with brokered deposits, we have identified 79 ranked less than 125 in the fourth quarter of 2020, down from 85 the previous quarter. When we see the number of these poorly rated banks reach a low and begin to rise, both in…
