Six core indicators for banks:Asset quality, net interest marginRoRWA indicators refer to, bank provisions, BP and bps.1. For banks, we can value the roe and undervalue it. More importantly, we can point to two things:asset quality and net interest spread. "but after the event, it could be in danger at that time". It refers to asset quality for two reasons: manufacturing is driven by revenue, while banks are driven by assets and liabilities. The core business of banks, lending, is unique: it is a highly leveraged business; there is an asymmetry between return and risk in time and space. Loan interest income is based on large amounts of principal. Loan interest can be reflected in the current profit, but the loss of principal will be reflected in the future.

2. Asset Quality Indicators: Nonperforming Indicators:Nonperforming Loan Ratio, Net Nonperforming Loan Ratio, Write-off Ratio, Migration Ratio, Related Loan Ratio, Overdue Loan and Restructured Loan Ratio. Loan structure:collateral, loan yield and maturity, customer structure (industry classification, customer concentration, etc.). In general, great importance is attached to the indicator of substandard rate. What banks call the NPL ratio is the percentage of non-performing loans. The NPL ratio is the proportion of non-performing loans to the total loan balance of a financial institution.

3. Net interest margin, definition of net interest margin: It is the ratio of a bank's net interest income to all of the bank's interest-bearing assets. Calculation formula is: net interest margin = (all banks interest income - interest expenses of the bank) / general indicators of interest-bearing assets and individual stocks of ordinary banks at the industry level (China Merchants Bank is slightly different, mainly retail) analysis must be relevant industry analysis. In addition, the bank's general financial indicators analysis also includes the size of deposits and loans, operating results, etc., the analysis of the entire industry also needs to include macro-environmental analysis, including the economic cycle, monetary policy, etc., the monetary policy includes lower standards, lower interest rates, etc.. Macro-environment: the investment logic of bank stocks and macro-economy is different from other cyclical stocks: the economy will be flat in the future or the growth rate will decline slightly, the pressure on the quality of bank assets is not big. The quality of bank assets is more concerned with the economy than how good the economy is.

4. RWA = Risk Weighted Assets, is the risk weight of bank loans. The funds lent by the bank are bank assets and the risk is not consistent across amounts. The corresponding risks are accumulated to get the total risk weight, which is used to assess the partial amount of capital that the bank needs to adjust. The return on risk-weighted assets is the corresponding value return on this portion. Includes bank loan loss provisions and bank asset loss provisions. Bank provisions play a key role in improving a bank's ability to absorb bad assets and are understandably important. Core Tier 1 capital, also known as Tier 1 capital and equity capital, refers to equity capital and public **** reserves. It is an integral part of bank capital, accounting for more than 50% of total bank capital and more than 4.5% of total bank cash financial assets. The capital of a commercial bank consists of core capital and subsidiary capital. Sources of core capital include the issuance of common stock and increased retained profits.