Earnings per share are similar to an industrial. In addition I like to plot book value per share. Unless book value is growing, it will eventually limit the rate of growth of earnings because of the restraints imposed by regulatory authorities on capitalization ratios. Finally, I like to plot dividends per share. This is an expression of the board of directors feeling of future growth.
Directors like to play it safe and retain adequate capital for future growth and liquidity.
I forecast the growth of future earnings per share at the rate of growth of earnings per share. Whenever a bank or other financial institution has grown by acquisition, do not use historic growth of total income as an indication of future growth of earnings. That may not be the case. In addition to calculating percent returns on equity capital as a measure of management ability, I also calculate and look at percent earned on total assets. But be careful.