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Strategies & Market Trends : Buffettology

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To: Paul Senior who wrote (4619)4/21/2018 4:01:25 PM
From: Spekulatius  Read Replies (1) of 4690
 
Well a 1% ROA with a 15x leverage will give you precisely a 15% ROE:-). Some banks have been achieving these numbers - I think USB is one, since they have a high percentage of fee income (which does not need to be carried by a large balance sheet). Other banks are in demand element countries, where the NIM are higher, often north of 5%. AVAL is one these banks which has been close to making it (its a well managed bank in a volatile country), but they can do it consistently, since every once in a while a crisis breaks out trashing the whole record. Insurance companies have similar issues.
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