Stage 3. ROE Breakdown
As we noticed in Stage 2, the value of shares will be affected by the future profitability and return on equity (ROE) of e-Bank. A large ROE is likely to lead to a higher valuation.
As the chief financial officer of e-Bank, you want to understand the major economic drivers of the return on equity.
To analyse the ROE, you will need the income statement of your bank as well as the balance sheet.
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