Invictus Ratings and Metrics

After running our ICAM™ and LoanLayering™ models on 6000+ FDIC-insured banks using a CCAR-style (Comprehensive Capital Analysis and Review) stress test, we produce a set of ratings, ratios and metrics to provide quick assessments on all banks:

Invictus Capitalization Score and Capital Momentum Measurement
Invictus Return on Required Capital Ratio
Invictus Acquisition Gauge


Invictus® Capitalization Score and Capital Momentum Measurement

The Invictus Capitalization Score is a simple measure of the post-stress leverage ratio based on the Severe stress scenario. This metric gives a quick assessment of sustainability of the bank for Regulators, Insurers, Bank Investors and the bank itself. The Capital Momentum Measurement indicates how fast capital is likely to be depleted under a stress scenario..

Invictus® Return on Required Capital Ratio

The Invictus Return on Required Capital Ratio is an asset efficiency ratio. It is gross interest income as a function of required capital. Required capital is an Invictus proprietary calculation -- it's based on how the bank performs in a 2-year stress test. The Invictus Return on Required Capital Ratio is useful as a comparative -- comparing a bank to its state average and the national average. A higher number indicates the bank is making the most out of its required capital.

The Invictus Return on Required Capital Ratio provides a way of highlighting banks of particular characteristics -- essential for Bank Investors performing M&A analysis, or acquisitive banks.

Invictus® Acquisition Gauge

Invictus looks at each bank's capital and earnings under stress to decide upon the attractiveness (or necessity) of each bank to acquire another bank, or to sell itself. Hence banks are delineated:

  • Must Buy,
  • Should Buy,
  • Must Sell,
  • Should Sell, or
  • Balanced.

Full information on this analysis is in our Leaders and Bleeders report.

Invictus can perform custom analysis on this data, for example finding banks with a particular Invictus Acquisition Gauge within a particular geographic area. This analysis can give banks an early short-list of acquisition prospects, either as a buyer or a seller. The next step would be to perform a combined portfolio stress test using public data. Please contact us to discuss your requirements.


FreeCapital is a measure of the amount of capital a bank has today that could be employed in strategic initiatives such as acquisitions, organic growth, dividend payments and other capital uses. FreeCapital can be calculated only after a stress test has been run -- because only then is the regulatory minimum capital requirement known. Invictus calculates FreeCapital using all four standard capital assessment ratios (Leverage Ratio, Total Capital Ratio, Tier 1 Risk-based Capital Ratio, and Common Equity Capital Ratio) and then selects the ratio that is most restrictive for each bank.