How Do Banks Make Profit? Banking Stocks Fundamental Analysis - Part 1 скачать в хорошем качестве

How Do Banks Make Profit? Banking Stocks Fundamental Analysis - Part 1

How Do Banks Make Profit? is the part 1 of the 3 part series on Banking Stocks Fundamental Analysis. The fundamental analysis of the banking stocks is completely different from the Fundamental Analysis of other stocks. The financial ratios for banking stocks analysis are different from the traditional financial ratios. In the 2nd part of this series, we will learn the financial ratios for Banking Stocks Fundamental Analysis. In the 3rd part of this series, we will learn how to analyze the bank stocks. For a complete analysis, it is important to understand the cost and revenue of the banks. The cost includes the interest on deposits and the cost of running bank operations. The revenue or income for the bank includes interest income from the loans and other income from the distribution of financial products & fees from the services offered by the bank. To earn a profit, the interest income from the loan should be more than interest paid on the deposits. The banks can raise the deposits based on the net worth of the bank. Higher the net worth of the bank, higher the deposit banks can raise. The total capital raised depends on the financial leverage or equity multiplier. Financial leverage equals total capital divided by the net worth. If you liked this video, You can "Subscribe" to my YouTube Channel. The link is as follows https://goo.gl/nsh0Oh By subscribing, You can daily watch a new Educational and Informative video in your own Hindi language. For more such interesting and informative content, join me at: Website: http://www.nitinbhatia.in/ T:   / nitinbhatia121   G+: https://plus.google.com/+NitinBhatia #NitinBhatia