Analyst ratings of financial services companies reveal truly "Hidden Value"; few expected names appear in top ten.NEW YORK--(BUSINESS WIRE)--August 17, 1995--In one of the largest surveys ever conducted of the financial community (1,189 analysts), 67 financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. institutions were rated on eight operating performance criteria criteria (krītēr´ē  ),n. , including brand equity, ability to increase revenue and employee relations. Interestingly, some firms with very high visibility did not place in the top ten, while the value of some less visible firms was recognized by the analysts surveyed. Fifth Third Bancorp received the highest combined ratings, while Norwest For the sniper, see .
Norwest Corporation received the second highest combined ratings and General RE Corp. received the third highest. The most highly rated criteria for Fifth Third Bancorp were ability to reduce costs and ability to avoid regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. problems. Norwest's highest rating was for ability to increase revenue while General RE's highest rating was for brand equity. The rating of financial services companies was the second installment Regular, partial portion of the same debt, paid at successive periods as agreed by a debtor and creditor. An installment loan is designed to be repaid in certain specified, ordinarily equal amounts over a designated period, such as a year or a number of months. of the Hidden Value(TM) Study, conducted by CDB CDB Common Database CDB Caribbean Development Bank CDB Convention sur la Diversité Biologique (Convention on Biological Diversity) CDB China Development Bank (Beijing, China) CDB Capital Development Board Research & Consulting Inc., a research and communications strategy consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a headquartered in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , in cooperation with Financial World magazine. The previous installment of the study presented ratings of 389 publicly-held, non-financial companies. The analysts and fund managers, who were interviewed by telephone, were asked to rate companies on eight non-financial, operating performance criteria or hidden assets hidden assets Items of value that are owned by a firm but do not appear on its balance sheet. For example, a trademark or patent may be a firm's most valuable owned asset; yet, it would not appear as such on its balance sheet. : o Ability to reduce costs o Ability to avoid regulatory problems o Ability to increase revenue o Customer satisfaction and loyalty o Brand equity of the company and its products o Ability to increase productivity o R&D, intellectual capital and the ability to innovate in·no·vate v. in·no·vat·ed, in·no·vat·ing, in·no·vates v.tr. To begin or introduce (something new) for or as if for the first time. v.intr. To begin or introduce something new. o Concern for and relations with its employees They were asked to use a scale of 1 to 10, where "10" meant excellent and "1" meant very poor. The table that follows contains each company's Hidden Value(TM) Index (the average rating across all eight hidden assets) for the financial services companies receiving the top 25 ratings, in addition to the one hidden asset for which each company received the highest rating. Information about purchasing the Hidden Value(TM) Study is available by calling CDB Research & Consulting Inc. at 212/887-8123. -0-
Financial Services Companies Receiving the
Top 25 Hidden Value(TM) Ratings
Rank Company Hidden Value(TM) Hidden Asset with
Index Highest Rating
1 Fifth Third Bancorp 8.94 Ability to reduce costs
and ability to avoid
regulatory problems
2 Norwest Corporation 8.08 Ability to increase revenue
3 General RE Corp. 8.02 Brand equity
4 American International
Group Inc. 7.76 Brand equity
5 People's Bank 7.75 Ability to avoid regulatory
problems
6 Corestates Financial Corp. 7.72 Ability to avoid regulatory
problems
7 The Travelers Corp. 7.66 Ability to reduce costs
8 Federal Home Loan 7.55 Brand equity
Mortgage Corp.
9 First Bank System Inc. 7.50 Ability to increase
productivity
10 Marshall & Ilsley Corp. 7.47 Ability to avoid regulatory
problems
11 Federal National Mortgage 7.46 Brand equity
Association
12 Standard Federal Bank 7.44 Employee relations
and ability to avoid
regulatory problems
13 ITT Corporation 7.37 Ability to reduce costs
14 Washington Mutual Savings 7.34 Customer satisfaction
Bank and loyalty
15 Wachovia Corporation 7.22 Employee relations and
customer satisfaction
and loyalty
16 Wells Fargo & Company 7.19 Brand equity
17 First Interstate 7.16 Ability to avoid regulatory
Bancorp (tie) problems
17 CSF Holdings Inc. (tie) 7.16 Ability to avoid regulatory
problems and customer
satisfaction and loyalty
19 MBIA Inc. 7.13 Brand equity
20 Merrill Lynch & Co. Inc. 7.10 Brand equity
21 Dean Witter, Discover & Co. 7.07 Ability to increase
productivity
22 NBD Bancorp Inc. 7.00 Ability to avoid regulatory
problems
23 Nationsbank 6.98 R&D, intellectual capital
24 First Union Corp. 6.97 Ability to increase revenue
25 Citicorp (tie) 6.95 Brand equity
25 American Express Company 6.95 Brand equity
(tie)
25 Morgan Stanley Group Inc. 6.95 Brand equity
(tie)
-0-
CONTACT: Ed Stevens Stevens, family of U.S. inventors. John Stevens, 1749–1838, b. New York City, was graduated from King's College (now Columbia Univ.) in 1768. , 212/887-8033 or Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Chiagouris, 212/887-8057 |
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