Is First Citizens BancShares ($FCNCA) Quietly Engineering a Banking Empire No One Saw Coming?
Net Income grows at ~10.4% CAGR, not just 6.5%, because:
- Equity compounds via retained earnings
- The return on growing equity (13%) drives exponential net income growth
Loan Book and Net Interest Income (NII) grow at 6.5%.
Net Income grows faster than loan book, due to equity compounding.
If you include share buyback and read the EPS, it might be more absurd.
With Scale and Prudence, FCNCA can be More Efficient.
The efficiency ratio takes the non-interest expense, divide by the sum of non-interest income and net interest income.
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