Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
<<All of the stock data sites have very high debt to equity ratios for BLX, something approaching 275%. I know that banks don't fit well into the same models that work for 'bricks and mortar' companies>>

This isn't something to worry about. The bank's Tier 1 equity ratio is almost 25% which is ridiculously high for a bank and it is trading below book value, which provides a pretty nice margin of safety, especially for a bank with such short-term loans.

The leverage (assets/equity) is under 6x, again good for a bank. Management is looking to increase this as trade activity picks up, but it shouldn't be a problem given the conservative nature of the business.
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.