You look at the graphic and think: Why!!??
And I tell you, although the ROE and ROA are below the industry average (14.6 vs 19.2 and 6.1 vs 11.4 respectively),its Net Income Growth (ytd vs ytd)is 12.90 vs 22.90 for the industry and its expected £950 million second half subprime related write downs. This Bank has good fundamental ratios: P/E of 6.1 vs 11.7 for the industry (I), P/S: 1.21 vs 2.51 I, P/B: 0,84 vs 1.67 I and P/CF 4.1 vs 9.1 I. Also its debt to equity of 0.65 is lower than the industry 3.33 .
But as you can see from my previous analysis, one must be carefull when analysing a company, and must not base one's analysis only on ratios... However there is just one more ratio I would like to mention, the dividen yield; at 8.73% I belive this might be an investment worth thinking about since, even after 20% taxes, it gives you a 6.98% return.
If you invest for the future (and I do belive that the stock will perform better as soon as this "bad weather" goes away,ABN integration is finished and synergies are extracted) and even if the stock performance is just in-line, you will at least receive a good dividend (the dividend rate 5 year growth has been 18.98%).
Disclaimer: I don't care if you buy the stock or not, but if you do don't blame me, I am not to be blamed for any investment you may do. I may or may not own the stock and I may or may not buy it in the future... So do your own research and invest wisely acordingly to your own thoughs on the matter.
$7.41 (02/11/08)
