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  • jim56442 jim56442 Sep 9, 2011 6:25 PM Flag

    Dividends!!

    Norm wrote the following:
    "John Allison made a presentation in 2006 showing that bbt's roe in 2006 on their tangible book value was around 28%. At the end of this year bbt's tbv should be close to $17/share. 28% times $17 share = $4.76/share"

    According to BBT's annual review the book value for 2005 was $20.49 and for 2006 it was $21.69 a share a 5.9% change. Return on average equity for 2005 was 14.95% and for 2006 it was 13.35%. Return on assets was 1.58% for 2005 and 1.34% for 2006.

    Not sure where the figures originated, but Norm's statement is not supported by the facts.

    Hope this clears up some of the confusion.

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    • "According to BBT's annual review the book value for 2005 was $20.49 and for 2006 it was $21.69 a share a 5.9% change. Return on average equity for 2005 was 14.95% and for 2006 it was 13.35%. Return on assets was 1.58% for 2005 and 1.34% for 2006.

      Not sure where the figures originated, but Norm's statement is not supported by the facts.

      Hope this clears up some of the confusion."

      Jim, if you read my message carefully, return of equity of 28% was based on tangible book value (book value less goodwill and net intangibles) and not book value as you reported.

      In 2005, goodwill and intangibles equaled around 50% of equity so you can double the #'s you reported to get to roe based on tangible book value - about 28%.

 
BBT
37.10-0.13(-0.35%)Aug 28 4:00 PMEDT