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I've been looking at USB/WFC/LYG/AIB. From what I know - I consider these to be the best, conservatively-run, well-capitalized, deposit-financed banks out there.

Price:Tangible Book - 5
P/E - 12.64
Tier 1 Capital: 8.6%
Price:Tangible Book - 4.2
P/E - 11
Tier 1 Capital: 7.0%
Price:Tangible Book - 1.5
P/E - 5.7
Tier 1 Capital: 6.3% (highest of major UK banks)
Price:Tangible Book - 1.1
P/E - 5.1
Tier 1 Capital: 7.5%

Clearly, earnings on all three are likely to decline moving forward, however I like the P/E as an indicator of relative earning power over the longer term.

Are these the right metrics to be looking at?

AIB and LYG look absurdly cheap to me right now.

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