The performance of large US banks before the acquisitions
| Acquirers | Targets | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| JPM | BAC | WFC | CFC | WB | WAMU | BSC | MER | LEH | |
| ROE (%) | |||||||||
| 2005 | 8.0 | 16.5 | 19.6 | 22.7 | 14.1 | 14.9 | 16.5 | 15.0 | 21.6 |
| 2006 | 13.0 | 16.3 | 19.5 | 18.8 | 14.4 | 13.5 | 19.1 | 20.1 | 23.4 |
| 2007 | 13.0 | 11.1 | 17.1 | −4.6 | 9.0 | −0.4 | 1.8 | −33.0 | 20.8 |
| PER (%) | |||||||||
| 2005 | 16.9 | 11.5 | 14.0 | 8.3 | 12.6 | 11.7 | 10.8 | 13.1 | 11.6 |
| 2006 | 12.1 | 11.7 | 14.4 | 9.9 | 12.3 | 12.5 | 10.7 | 12.3 | 10.8 |
| 2007 | 10.1 | 12.5 | 12.7 | −4.4 | 11.7 | −113.4 | 65.6 | −5.5 | 8.6 |
| PBR | |||||||||
| 2005 | 1.3 | 1.8 | 2.6 | 1.6 | 1.7 | 1.6 | 1.6 | 1.9 | 2.2 |
| 2006 | 1.4 | 1.8 | 2.6 | 1.8 | 1.6 | 1.6 | 1.8 | 2.3 | 2.2 |
| 2007 | 1.2 | 1.3 | 2.1 | 0.2 | 1.0 | 0.6 | 1.2 | 1.8 | 1.6 |
| E/A (%) | |||||||||
| 2005 | 8.9 | 7.9 | 8.8 | 7.3 | 9.0 | 7.9 | 3.8 | 5.2 | 4.1 |
| 2006 | 8.6 | 9.3 | 8.9 | 7.2 | 7.7 | 7.8 | 3.5 | 4.6 | 3.8 |
| 2007 | 7.9 | 8.6 | 9.0 | 6.9 | 9.0 | 7.5 | 3.0 | 3.1 | 3.3 |
| ROA (%) | |||||||||
| 2005 | 4.8 | 5.5 | 5.9 | 5.9 | 5.4 | 5.4 | 5.0 | 5.1 | 5.2 |
| 2006 | 6.1 | 6.5 | 6.7 | 6.4 | 6.2 | 6.1 | 6.0 | 6.2 | 6.2 |
| 2007 | 6.3 | 6.2 | 6.7 | 5.0 | 6.0 | 5.2 | 5.6 | 4.5 | 6.2 |
| Acquirers | Targets | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| JPM | BAC | WFC | CFC | WB | WAMU | BSC | MER | LEH | |
| 2005 | 8.0 | 16.5 | 19.6 | 22.7 | 14.1 | 14.9 | 16.5 | 15.0 | 21.6 |
| 2006 | 13.0 | 16.3 | 19.5 | 18.8 | 14.4 | 13.5 | 19.1 | 20.1 | 23.4 |
| 2007 | 13.0 | 11.1 | 17.1 | −4.6 | 9.0 | −0.4 | 1.8 | −33.0 | 20.8 |
| 2005 | 16.9 | 11.5 | 14.0 | 8.3 | 12.6 | 11.7 | 10.8 | 13.1 | 11.6 |
| 2006 | 12.1 | 11.7 | 14.4 | 9.9 | 12.3 | 12.5 | 10.7 | 12.3 | 10.8 |
| 2007 | 10.1 | 12.5 | 12.7 | −4.4 | 11.7 | −113.4 | 65.6 | −5.5 | 8.6 |
| 2005 | 1.3 | 1.8 | 2.6 | 1.6 | 1.7 | 1.6 | 1.6 | 1.9 | 2.2 |
| 2006 | 1.4 | 1.8 | 2.6 | 1.8 | 1.6 | 1.6 | 1.8 | 2.3 | 2.2 |
| 2007 | 1.2 | 1.3 | 2.1 | 0.2 | 1.0 | 0.6 | 1.2 | 1.8 | 1.6 |
| 2005 | 8.9 | 7.9 | 8.8 | 7.3 | 9.0 | 7.9 | 3.8 | 5.2 | 4.1 |
| 2006 | 8.6 | 9.3 | 8.9 | 7.2 | 7.7 | 7.8 | 3.5 | 4.6 | 3.8 |
| 2007 | 7.9 | 8.6 | 9.0 | 6.9 | 9.0 | 7.5 | 3.0 | 3.1 | 3.3 |
| 2005 | 4.8 | 5.5 | 5.9 | 5.9 | 5.4 | 5.4 | 5.0 | 5.1 | 5.2 |
| 2006 | 6.1 | 6.5 | 6.7 | 6.4 | 6.2 | 6.1 | 6.0 | 6.2 | 6.2 |
| 2007 | 6.3 | 6.2 | 6.7 | 5.0 | 6.0 | 5.2 | 5.6 | 4.5 | 6.2 |
Note(s): Data are hand-collected from annual reports of each bank
ROA (%) is calculated using ROE, E/A and borrowing cost of banks which is the 3 month USD Libor
Negative numbers are not meaningful but indicating that banks have losses rather than positive earnings
E/A (%) is equity over total assets ratio
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