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Century Bancorp (Century Bancorp) ROE % : 11.80% (As of Sep. 2021)


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What is Century Bancorp ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Century Bancorp's annualized net income for the quarter that ended in Sep. 2021 was $46.9 Mil. Century Bancorp's average Total Stockholders Equity over the quarter that ended in Sep. 2021 was $397.8 Mil. Therefore, Century Bancorp's annualized ROE % for the quarter that ended in Sep. 2021 was 11.80%.

The historical rank and industry rank for Century Bancorp's ROE % or its related term are showing as below:

CNBKA' s ROE % Range Over the Past 10 Years
Min: 8.91   Med: 11.28   Max: 12.92
Current: 11.76

During the past 13 years, Century Bancorp's highest ROE % was 12.92%. The lowest was 8.91%. And the median was 11.28%.

CNBKA's ROE % is not ranked
in the Banks industry.
Industry Median: 9.88 vs CNBKA: 11.76

Century Bancorp ROE % Historical Data

The historical data trend for Century Bancorp's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Century Bancorp ROE % Chart

Century Bancorp Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.79 8.91 12.92 12.54 12.01

Century Bancorp Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.17 12.65 11.46 11.19 11.80

Competitive Comparison of Century Bancorp's ROE %

For the Banks - Regional subindustry, Century Bancorp's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Century Bancorp's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Century Bancorp's ROE % distribution charts can be found below:

* The bar in red indicates where Century Bancorp's ROE % falls into.



Century Bancorp ROE % Calculation

Century Bancorp's annualized ROE % for the fiscal year that ended in Dec. 2020 is calculated as

ROE %=Net Income (A: Dec. 2020 )/( (Total Stockholders Equity (A: Dec. 2019 )+Total Stockholders Equity (A: Dec. 2020 ))/ count )
=42.209/( (332.581+370.409)/ 2 )
=42.209/351.495
=12.01 %

Century Bancorp's annualized ROE % for the quarter that ended in Sep. 2021 is calculated as

ROE %=Net Income (Q: Sep. 2021 )/( (Total Stockholders Equity (Q: Jun. 2021 )+Total Stockholders Equity (Q: Sep. 2021 ))/ count )
=46.928/( (392.555+402.951)/ 2 )
=46.928/397.753
=11.80 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2021) net income data. ROE % is displayed in the 30-year financial page.


Century Bancorp  (NAS:CNBKA) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=46.928/397.753
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(46.928 / 138.208)*(138.208 / 7196.788)*(7196.788 / 397.753)
=Net Margin %*Asset Turnover*Equity Multiplier
=33.95 %*0.0192*18.0936
=ROA %*Equity Multiplier
=0.65 %*18.0936
=11.80 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2021 )
=Net Income/Total Stockholders Equity
=46.928/397.753
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (46.928 / 56.052) * (56.052 / 138.208) * (138.208 / 7196.788) * (7196.788 / 397.753)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8372 * 40.56 % * 0.0192 * 18.0936
=11.80 %

Note: The net income data used here is four times the quarterly (Sep. 2021) net income data. The Revenue data used here is four times the quarterly (Sep. 2021) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Century Bancorp ROE % Related Terms

Thank you for viewing the detailed overview of Century Bancorp's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Century Bancorp (Century Bancorp) Business Description

Traded in Other Exchanges
N/A
Address
400 Mystic Avenue, Medford, MA, USA, 02155
Century Bancorp Inc is a commercial bank that provides a range of services to commercial enterprises, state and local governments and agencies, non-profit organizations and individuals. It makes commercial loans, real estate and construction loans and consumer loans, and accepts savings, time, and demand deposits. The bank also offers its corporate and institutional customers automated lockbox collection services, cash management services and account reconciliation services, and actively promotes the marketing of these services to the municipal market. Century Bancorp earns its revenue from interest income.
Executives
Barry R Sloane director, officer: Chairman, CEO and President 5 SPINNAKER DRIVE, PO BOX 247, BARRINGTON RI 02806
James J Filler 10 percent owner 2964 SHOOK HILL PARKWAY, BIRMINGHAM AL 35223
Paul A Evangelista officer: Executive Vice President CENTURY BANK & TRUST CO 400 MYSTIC AVE MEDFORD MA 02155
Linda Sloane Kay director, officer: Vice Chair 400 MYSTIC AVENUE MEDFORD MA 02155
Stephen R Delinsky director 400 MYSTIC AVENUE MEDFORD MA 02155
Brian J. Feeney officer: Executive Vice President 400 MYSTIC AVENUE MEDFORD MA 02155
William P Hornby officer: CFO and Treasurer 400 MYSTIC AVENUE MEDFORD MA 02155
Louis J Grossman director 400 MYSTIC AVENUR MEDFORD MA 02155
Joseph J Senna director
Sloane Family Enterprises, Limited Partnership 10 percent owner 400 MYSTIC AVE MEDFORD MA 02155
Jo Ann Simons director 400 MYSTIC AVENUE MEDFORD MA 02155
Jackie Jenkins-scott director 400 MYSTIC AVENUE MEDFORD MA 02155
George F Swansburg director
Joseph P Mercurio director BOSTON UNVIERSITY 25 BUICK STREET BOSTON MA 02215
Fraser Lemley director

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