Thursday, March 21, 2019
Tech Data’s Goodwill Adjustment

Tuesday, March 19, 2019
There’s Taxes, and There’s Taxes

Saturday, March 16, 2019
Adventures in Tax Cuts and Net Income

Monday, March 11, 2019
Big Moves in Goodwill, Intangible Value

Friday, March 8, 2019
CVS, Goodwill, and Enterprise Value

Thursday, February 28, 2019
Summary of Our Goodwill Research/ How-To

Wednesday, February 27, 2019
What Does ‘Other’ Mean? An Example

Thursday, February 21, 2019
Another Tale, Buried in the Footnotes

Wednesday, February 13, 2019
Low Latency Calcbench

Monday, February 11, 2019
Now Streaming on Hulu: Red Ink

Thursday, February 7, 2019
Early Look at 2018 Tax Decline

Wednesday, February 6, 2019
You Revised WHAT, Netflix?

Thursday, January 31, 2019
Talking About Huawei Exposure

Wednesday, January 30, 2019
Another Discrepancy in Reported Numbers

Wednesday, January 30, 2019
Finding Revised Facts: Hertz Edition

Wednesday, January 23, 2019
GE Commercial Aviation Services: Bringing Numbers to Light

Monday, January 21, 2019
Differences in Earnings Releases and 10-Ks

Wednesday, January 16, 2019
The Importance of Textual Analysis

Tuesday, January 8, 2019
A Look at Climate Change Disclosures

Wednesday, January 2, 2019
Quants: Point-in-Time Data for Backtesting

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Income from Loans
Thursday, October 15, 2015

At Calcbench, we are always looking to help our clients get more information from financial data than they have in the past. Here is yet another example. Because of the power of tagged data through, XBRL, we have access to the footnotes of every public company in America. We decided to look at the top 10 American deposit taking banks, as measured by Assets. Next, we collected the Loans Receivable that each of these firms has reported over the last 14 quarters and the fees that each firm has generated from these loans. We charted the ratio of these numbers to give us the implied profitability of the loan book. We have annualized the numbers for comparability. The results are below:

*(All Returns Annualized for comparability)

Do these results imply anything about the credit quality of the loans that certain banks are making? At a cursory glance, we would say that it does appear that Capital One (top, blue line) and Citigroup (gray line)are generating bigger income from their loans than any of their peers. The Citigroup loan book is the smallest of the Big 4 banks (Wells Fargo, Bank Of America and JP Morgan), but they do generate most more income from their book than the others (credit card business). Capital One, has a large credit card business and therefore the biggest income as a percent of their loan book.

This seems pretty straightforward to us. Anyone want to comment?

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