Washington Mutual Inc. was once a Wall Street darling, setting some lofty financial benchmarks to achieve for the period between 2005 and 2009. More than halfway through its four-year plan, the lender has obviously experienced some rough patches, falling short of its goals and even having been speculated a takeover candidate. But it's still interesting to see the difference between the high expectations WaMu set for itself back in 2004 long before the current credit crunch.
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The most glaring disparity in the numbers is WaMu's earnings-per-share target of a high-teens growth rate to the actual result as of a negative 30.43% average between 2005-2007. Here's a look below of the full table of the WaMu target versus results:
|
2005 - 2009 Targets & Results |
| |
Targets
2005 - 2009 |
2007 Results |
| Return on average common stockholders' equity * |
High teens |
9.28% |
| Earnings per share growth * |
Double digit |
(30.43)% |
| Nonperforming assets/total assets 2 |
< 1.00% |
0.89% |
| Efficiency ratio 3 |
< 50.00% |
122.13% |
| Tangible equity/total tangible assets 4 |
> 5.50% |
6.67% |
|
* Average 2005-2007
2 Average 2005-2007; 2.17% at 12/31/07
3 For the year ending 12/31/07
4 At 12/31/07
|
|
Source: WaMu |
Now, WaMu, of course, does have a disclaimer on its site: "Forward-looking information contained in these presentations is subject to various risks and uncertainties that could cause actual results to differ materially from expectations." But who would have thought that the growth it initially experienced because of the mortgage industry would in fact be the poison that made it sick? - Gerald Magpily
TheDeal.com: WaMu to raise $7B in new equity
