Valuation range the line at three costs of equity r 11% · 1.61× r 9% · 2.14× now 1.85×
0.0× 1.0× 2.0× 3.0× 4.0×
At r = 10% the line gives 1.83× for a 15.8% ROTCE; the market pays 1.85×, a 1% premium to the line .
Where it has traded quarter-end P/TBV · 20 quarters · Dec 31, 2021 → Sep 30, 2026 0.50× 1.00× 1.50× 2.00× 2.50× 2021 2022 2023 2024 2025 2026 2021-12-31 · 2.10× (close 44.49 · TBVPS 21.23) 2022-03-31 · 1.98× (close 41.22 · TBVPS 20.78) 2022-06-30 · 1.49× (close 31.13 · TBVPS 20.94) 2022-09-30 · 1.44× (close 30.20 · TBVPS 21.00) 2022-12-31 · 1.54× (close 33.12 · TBVPS 21.55) 2023-03-31 · 1.28× (close 28.60 · TBVPS 22.34) 2023-06-30 · 1.25× (close 28.69 · TBVPS 23.01) 2023-09-30 · 1.17× (close 27.38 · TBVPS 23.48) 2023-12-31 · 1.40× (close 33.67 · TBVPS 24.09) 2024-03-31 · 1.55× (close 37.92 · TBVPS 24.42) 2024-06-30 · 1.60× (close 39.77 · TBVPS 24.91) 2024-09-30 · 1.55× (close 39.68 · TBVPS 25.68) 2024-12-31 · 1.70× (close 43.95 · TBVPS 25.93) 2025-03-31 · 1.57× (close 41.73 · TBVPS 26.52) 2025-06-30 · 1.75× (close 47.32 · TBVPS 27.06) 2025-09-30 · 1.88× (close 51.59 · TBVPS 27.42) 2025-12-31 · 1.99× (close 55.00 · TBVPS 27.59) 2026-03-31 · 1.75× (close 48.75 · TBVPS 27.86) 2026-06-30 · 2.01× (close 56.98 · TBVPS 28.39) 2026-09-30 · 1.96× (close 54.43 · TBVPS 27.72) p75 1.90× med 1.59× p25 1.47× now 1.85× Five-year median 1.59×, middle half 1.47–1.90×, range 1.17–2.10×. Now 1.85×: +17% above its own median, higher than 70% of those quarters. Each quarter priced at its own TBVPS · the band is the 25th–75th percentile
Where the money goes TTM through Sep 30, 2026 · $B 0 50 100 Interest income: 135.7 $B 135.7 Interest income Interest expense: −71.8 $B −71.8 Interest expense NII: 63.9 $B 63.9 NII Non-interest income: 59.0 $B 59.0 Non-interest income Net revenue: 123.0 $B 123.0 Net revenue Operating expenses: −74.1 $B −74.1 Operating expenses Provision: −5.3 $B −5.3 Provision Other items: −0.2 $B −0.2 Other items Pre-tax: 43.4 $B 43.4 Pre-tax Tax: −11.3 $B −11.3 Tax Net income: 32.1 $B 32.1 Net income
assets $3.4T ÷ TCE $202.7B = 16.9× leverage · ROA 0.94% × 16.9 = ROTCE 15.8%
Revenue mix NII vs. non-interest income · Money center peers (3) BAC 52 / 48
Tier average 53 / 47
Efficiency 60.2% vs. tier 58.7% · ROTCE 15.8% vs. 17.7% · credit cost 4.3% vs. 7.2% · AOCI/TCE −7.5% vs. −15.7%.
Quarter by quarter 8 quarters · Dec 31, 2024 → Sep 30, 2026 · a gap is a dropped quarter