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IFIC Bank (DHA:IFIC) ROA % : 0.37% (As of Jun. 2023)


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What is IFIC Bank ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. IFIC Bank's annualized Net Income for the quarter that ended in Jun. 2023 was BDT1,817 Mil. IFIC Bank's average Total Assets over the quarter that ended in Jun. 2023 was BDT489,605 Mil. Therefore, IFIC Bank's annualized ROA % for the quarter that ended in Jun. 2023 was 0.37%.

The historical rank and industry rank for IFIC Bank's ROA % or its related term are showing as below:

DHA:IFIC' s ROA % Range Over the Past 10 Years
Min: 0.33   Med: 0.66   Max: 1.05
Current: 0.73

During the past 9 years, IFIC Bank's highest ROA % was 1.05%. The lowest was 0.33%. And the median was 0.66%.

DHA:IFIC's ROA % is ranked worse than
59.67% of 1463 companies
in the Banks industry
Industry Median: 0.9 vs DHA:IFIC: 0.73

IFIC Bank ROA % Historical Data

The historical data trend for IFIC Bank's ROA % 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.

IFIC Bank ROA % Chart

IFIC Bank Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only 0.93 0.33 0.66 0.78 0.60

IFIC Bank Quarterly Data
Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Dec23
ROA % 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 0.68 1.51 0.52 0.37 -

Competitive Comparison of IFIC Bank's ROA %

For the Banks - Regional subindustry, IFIC Bank's ROA %, along with its competitors' market caps and ROA % 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.


IFIC Bank's ROA % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, IFIC Bank's ROA % distribution charts can be found below:

* The bar in red indicates where IFIC Bank's ROA % falls into.



IFIC Bank ROA % Calculation

IFIC Bank's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=3005.23/( (470548.02+529936.531)/ 2 )
=3005.23/500242.2755
=0.60 %

IFIC Bank's annualized ROA % for the quarter that ended in Jun. 2023 is calculated as:

ROA %=Net Income (Q: Jun. 2023 )/( (Total Assets (Q: Mar. 2023 )+Total Assets (Q: Jun. 2023 ))/ count )
=1816.5/( (481747.837+497461.98)/ 2 )
=1816.5/489604.9085
=0.37 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2023) net income data. ROA % is displayed in the 30-year financial page.


IFIC Bank  (DHA:IFIC) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2023 )
=Net Income/Total Assets
=1816.5/489604.9085
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1816.5 / 14178.684)*(14178.684 / 489604.9085)
=Net Margin %*Asset Turnover
=12.81 %*0.029
=0.37 %

Note: The Net Income data used here is four times the quarterly (Jun. 2023) net income data. The Revenue data used here is four times the quarterly (Jun. 2023) revenue data.

* 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

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


IFIC Bank ROA % Related Terms

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IFIC Bank (DHA:IFIC) Business Description

Traded in Other Exchanges
N/A
Address
IFIC Tower, 61 Purana Paltan, GPO Box : 2229, Dhaka, BGD, 1000
IFIC Bank PLC is a commercial banking company in Bangladesh. The company provides corporate banking, retail banking internet banking, and SME banking. The company is also engaged in Treasury and capital market offering Cash Management, Liquidity Planning, Liquidity Protection, Trading of Foreign Exchange and Money Market Instruments, and Risk Management. Its segments are Corporate; SME; Short term Agri credit; Consumer and Others. It derives interest income from the Conventional banking unit and Off-Shore banking unit.

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