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WHY IS GOLD CRASHING? - From Steve
Banking is one of the most complex industries to analyze - and one of the most dangerous models.
At its core, every bank does one very simple thing:
Borrow at low cost, lend at higher rates, and pocket the spread.
No factories, no inventory, no complex supply chains.
But in exchange, they operate on something most other businesses don't have: extreme financial leverage→ 0% rates → cheapest funding
A small mistake in credit risk assessment, an unexpected interest rate shift, or an economic cycle reversal - any of these can quickly wipe out profits, even equity capital.
That's why bank analysis can't be like analyzing a regular business.
In this week's article, Viet Hustler will build with you a complete framework for bank analysis, from the core business model to the 11 most important financial metrics, and how to apply them in practice via JP Morgan's Q4 FY2025 report.
How Do Banks Operate?
Macro Factors Impacting Banking
Fundamental Analysis: 11 Key Metrics
Risks to Monitor
Preliminary Valuation
