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How to Analyze a Financial Services Company, Including Banks and Insurance

Sectors and Industries • Beginner Investing • 7 min

Banks and insurance companies don't fit the standard analysis playbook, because for both, the balance sheet isn't just a supporting document — it's essentially the business itself. For a bank, net interest margin (NIM) — the spread between what it earns on loans and investments versus what it pays out on deposits, relative to its earning assets — is a core profitability metric, alongside loan quality (are borrowers…

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