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Lafferty Bank Ratings

Author: Lafferty Bank Ratings

Publishing date: September 2015

Lafferty Bank Ratings is a unique new service that rates banks for their quality, integrity, credibility and trust. Such a classification has never been attempted before.

The stock market recognises quality by rewarding banks with higher price to book ratios (P/B). However, banks that grow earnings, regardless of the earnings quality, tend to de-rate via the same measure.

We saw a correlation between a bank's quality and its value to investors, so we looked at the key factors for which investors pay a premium. Then we rated each bank for each of these key factors, to give an overall quality score. As we expected, banks that rate well for quality trade at a premium over tangible book value.

Through careful analysis of the bank's annual report, scrutinised through the lens of Lafferty's decades of banking experience, we offer a tiered, customised service, specific to each customer, either at a retail bank level or for the overall group. We look for unusual notes in the accounts. We question whether the bank actually does what it sets out to do. We sense the culture in the bank. Does it have a commitment to performance and accountability? We ask ourselves: do they know what they are doing?

Lafferty Bank Ratings aims to equip boards and senior management with the knowledge required to improve the quality of their bank and to help ensure its long-term sustainability, in the volatile landscape of post-crisis banking.

The Classic Service rates either the overall bank or the retail bank against other unnamed competitors in the national market

The Premium Service rates either the overall bank or the retail bank against named competitors in the national market.

PLEASE NOTE: Lafferty Bank Ratings' benchmarking reports are customised for each client. Upon receipt of payment through our order page, report preparation will be initiated and the final report will be made available within 10 working days of purchase.


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