A P/B ratio of less than one implies that stock market participants expect that banks will not be able to make returns higher than their cost of capital. 8  Net interest income is interest income such as loan interest income and security interest income net of interest expenses such as deposit interest expenses.
Net non-interest income is mainly composed of the fees and commissions for services provided by banks such as funds transfer services, deposit-taking and lending services, and securities sales net of the fees and commissions paid to other banks (net fees and commissions). 6  ratio) nevertheless is generally small from an international perspective (Chart 6).