When it comes to investing in banks, return on assets (ROA) and return on equity (ROE) are two of the most critical metrics to consider. While these metrics are great places to start, investors need to dig deeper into the financial statements to find which bank is truly delivering excellent returns.
In this video, Motley Fool banking analysts Matt Koppenheffer and David Hanson discuss five banks that produced outsized returns on equity in 2012. Matt and David also tell investors which bank they believe may be the best buy of the bunch.
Is U.S. Bancorp right for you?
With some big finance firms still trading at deep discounts to their historic norms, investors everywhere are wondering if this is the new normal, or whether finance stocks are a screaming buy today. The answer depends on the company, so to help figure out whether US Bancorp is a buy today, I invite you to read our premium research report on the company today. Click here now for instant access!