11 January 2012

Take 15: ROE: The Wrong Performance Measure for Banks

Posted In: Equity Investments, Performance Measurement & Evaluation

Robert Jenkins, FSIP, cites the flaws in the traditional return on equity (ROE) measure in measuring bank financial performance and proposes some much needed alternatives.

This episode of the Take 15 Series was originally released on 28 December 2011.

Are you viewing this post on a mobile device? Download the CFA Institute app from iTunes or Android Market to watch this and other videos.

Tags: banking, equities, performance measurement, Take 15, Videos

Share On

About the Author(s)

Ed Bace, CFA

Ed Bace, CFA, was previously head of education for the Europe, Middle East, and Africa (EMEA) region at CFA Institute. He has also served as a professor of finance at BPP Business School. Bace has more than 20 years of experience in international finance, including roles with the European Bank for Reconstruction and Development, Lehman Brothers, and Standard & Poor’s. He holds an MBA in finance and international business from New York University.