Home » Uncategorized » What’s In Their Wallet Draft

What’s In Their Wallet Draft

whats-in-their-wallet-v2

Abstract:

Why is the bank Capital One’s 2015 NIM such an outlier relative to Bank Holding Companies (BHCs) of comparable and larger asset base? Capital One NIM is double the average bank NIM in 2016, Why is that? Press coverage over that past couple years attribute COF outperformance to going long risky credits and managing the write-downs. Maybe they are right and COF is just good at making and managing loans for a decade. On the other hand, maybe COF is running a very different quantitative model than its competitors. COF has 300+ BN of assets in 2016 and is making 300 more bps per year on their assets than the average competitor BHC makes on their assets. Banks’ NIMs are at 30 year lows but not at COF. Maybe the competitors can learn from COF. We discuss some of the quantitative possibilities.

  • Sort out references
  • cover assess QRM, Bancware, Polymaths, Oracle Financial …
  • clean up flow start to finish
  • Tighten up abstract and summary.
  • Find some COF folks to comment
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