Actionable Trading Ideas for Bank Investors

The banking industry faces once-in-a-generation challenges. During the period from 2008-2010, more than 300 banks and thrifts with over $750 billion in assets went out of business and the industry earned a cumulative 2% return on equity. Even today, ROEs are below 8% and efficiency ratios continue to climb.

While the worst of the credit losses have passed, Invictus believes that a substantial number of banks remain at risk of closure, and many more will be unable to generate acceptable returns -- especially should interest rates rise in the near future. Loan origination volumes and spreads are are in decline with only the strongest banks able to compete. Banks have been "buying business" with insufficient regard for the future. Regulatory costs and pressures are high and getting higher. There are no easy answers, and bank executives are struggling for solutions.

Using our patent-pending ICAM™ and LoanLayering® models, insights gleaned from our network of commercial bank and bank regulator clients and our many years of banking experience, every quarter we analyze the call reports of every FDIC-insured depository. Our public data model produces easy to use and understand forward-looking assessments of:

  • Capital adequacy
  • Earnings
  • Dividend stability
  • Loan quality
  • Provisioning adequacy
  • And multiple other metrics

Invictus also generates custom reports to client specifications, with Invictus Investor. We will run our models with your input assumptions, and to your defined output. This information advantage results in actionable trading ideas and investment decisions. Some possibilities are:

  • Single-bank capital/strategic analysis
  • Alerts
  • Screening/sorting against client-specified criteria
  • Modelling partial/full database with client-specified assumptions
  • Customized indices
  • Assist acquirers with valuation/loss-sharing agreements

Invictus provides information and advisory services only. We do not trade, and we do not need nor want you to disclose your trades or trading models.

Invictus is the only company in the market to provide such a service.

Find out more about Invictus Investor.