Bank Capital Allocation: Explaining Buybacks

A Simple Explanation of Repurchasing Shares and How Price, Valuation, & Earnings Growth Shape the Equation

I was chatting with a friend (and must follow on X - shaskell12) about capital allocation in the banking industry, and it got me thinking. There’s really no bank capital allocation bible for boards or execs or people wanting to become “great” at the skill.

So, let’s take a stab at one of the main ways execs can “allocate capital” at a bank, stock buyback…