When a 13 % ROE Bank Trades for <0.8x Book: Why the ‘Zip-Code Discount’ Won’t Last
Double-digit ROE, rising buybacks, and a sub-0.8x book multiple: uncover the overlooked bank stock primed for a rerating.
Remember that feeling when you swap out a house coffee for an espresso shot and wonder why you didn’t do it sooner?
That was me on July 7 when I fired off a trade alert. I sold two US fintechs (LC 0.00%↑ and QTWO 0.00%↑) while buying an Asian bank.
Why?
Because the Asian bank offered the upside of both, minus the drama.
Two birds, one stone. First, we’re trading two U.S. fintech names for a single lender whose balance sheet could moonlight as a Swiss vault. Second, the move trims our home-field risk. Less red, white, and blue in the portfolio, more global flavour.
Here’s what you’re getting in this mystery bank:
Double-digit ROE
Sub-0.8x price-to-book
A dividend that grows faster than my baby (and she is growing fast!)
Management has already repurchased 6% of its shares over the past two years, and it continues to do so.
Curious?
Good.
Want the name, the deep dive, and the game plan?
Keep reading.