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!
The article 5 Banks With Big Returns originally appeared on Fool.com.David Hanson and Matt Koppenheffer have no position in any stocks mentioned. You can follow David and Matt on Twitter. The Motley Fool recommends BofI Holding. The Motley Fool owns shares of BofI Holding. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.