GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Green Bancorp Inc (NAS:GNBC) » Definitions » ROE %

Green Bancorp (Green Bancorp) ROE % : 12.87% (As of Sep. 2018)


View and export this data going back to 2014. Start your Free Trial

What is Green Bancorp ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Green Bancorp's annualized net income for the quarter that ended in Sep. 2018 was $62.4 Mil. Green Bancorp's average Total Stockholders Equity over the quarter that ended in Sep. 2018 was $484.8 Mil. Therefore, Green Bancorp's annualized ROE % for the quarter that ended in Sep. 2018 was 12.87%.

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

GNBC's ROE % is not ranked *
in the Banks industry.
Industry Median: 9.7
* Ranked among companies with meaningful ROE % only.

Green Bancorp ROE % Historical Data

The historical data trend for Green 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.

Green Bancorp ROE % Chart

Green Bancorp Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17
ROE %
Get a 7-Day Free Trial 6.51 6.05 4.30 -0.23 7.63

Green Bancorp Quarterly Data
Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18
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 9.98 2.26 8.03 13.85 12.87

Competitive Comparison of Green Bancorp's ROE %

For the Banks - Regional subindustry, Green 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.


Green Bancorp's ROE % Distribution in the Banks Industry

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

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



Green Bancorp ROE % Calculation

Green Bancorp's annualized ROE % for the fiscal year that ended in Dec. 2017 is calculated as

ROE %=Net Income (A: Dec. 2017 )/( (Total Stockholders Equity (A: Dec. 2016 )+Total Stockholders Equity (A: Dec. 2017 ))/ count )
=34.136/( (430.482+463.795)/ 2 )
=34.136/447.1385
=7.63 %

Green Bancorp's annualized ROE % for the quarter that ended in Sep. 2018 is calculated as

ROE %=Net Income (Q: Sep. 2018 )/( (Total Stockholders Equity (Q: Jun. 2018 )+Total Stockholders Equity (Q: Sep. 2018 ))/ count )
=62.388/( (479.493+490.204)/ 2 )
=62.388/484.8485
=12.87 %

* 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. 2018) net income data. ROE % is displayed in the 30-year financial page.


Green Bancorp  (NAS:GNBC) 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. 2018 )
=Net Income/Total Stockholders Equity
=62.388/484.8485
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(62.388 / 179.968)*(179.968 / 4405.7755)*(4405.7755 / 484.8485)
=Net Margin %*Asset Turnover*Equity Multiplier
=34.67 %*0.0408*9.0869
=ROA %*Equity Multiplier
=1.41 %*9.0869
=12.87 %

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. 2018 )
=Net Income/Total Stockholders Equity
=62.388/484.8485
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (62.388 / 82.16) * (82.16 / 179.968) * (179.968 / 4405.7755) * (4405.7755 / 484.8485)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7593 * 45.65 % * 0.0408 * 9.0869
=12.87 %

Note: The net income data used here is four times the quarterly (Sep. 2018) net income data. The Revenue data used here is four times the quarterly (Sep. 2018) 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.


Green Bancorp ROE % Related Terms

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


Green Bancorp (Green Bancorp) Business Description

Traded in Other Exchanges
N/A
Address
Green Bancorp Inc is a bank holding company. The company through its wholly owned subsidiaries provides commercial and private banking services mainly to Texas based customers.
Executives
Friedman Fleischer & Lowe Parallel Fund Iii Lp 10 percent owner One Maritime Plaza, San Francisco CA 94111
Friedman Fleischer & Lowe Capital Partners Iii Lp 10 percent owner One Maritime Plaza, San Francisco CA 94111
Ffl Executive Partners Iii Lp 10 percent owner C/O FRIEDMAN FLEISCHER & LOVE LLC, ONE MARITIME PLAZA, SUITE 2200, SAN FRANCISCO CA 94111
Friedman Fleischer & Lowe Gp Iii, Llc 10 percent owner ONE MARITIME PLAZA, 22ND FLOOR, SAN FRANCISCO CA 94111
Ffl Individual Partners Iii, L.p. 10 percent owner ONE MARITIME PLAZA, 22ND FLOOR, SAN FRANCISCO CA 94111
Friedman Fleischer & Lowe Gp Iii, L.p. 10 percent owner ONE MARITIME PLAZA, 22ND FLOOR, SAN FRANCISCO CA 94111
Terry Earley officer: Chief Financial Officer C/O CRESCENT FINANCIAL BANCSHARES, INC., 1005 HIGH HOUSE ROAD, CARY NC 27513
Pine Brook Road Associates, L.p. 10 percent owner C/O PINE BROOK ROAD PARTNERS, LLC, 60 EAST 42ND STREET, 50TH FLOOR, NEW YORK NY 10165
Pine Brook Capital Partners Lp 10 percent owner 100 PARK AVENUE, SUITE 2100, NEW YORK NY 10017
Pine Brook Road Advisors, L.p. 10 percent owner 60 EAST 42ND STREET, SUITE 3014, 50TH FLOOR, NEW YORK NY 10165
Pbra, Llc director, 10 percent owner C/O PINE BROOK ROAD PARTNERS, LLC, 60 EAST 42ND STREET, SUITE 3014, NEW YORK NY 10165
Howard H Newman 10 percent owner C/O PINE BROOK ROAD PARTNERS, LLC, 60 EAST 42ND STREET, SUITE 3014, NEW YORK NY 10165
Steven D. Lerner director C/O GREEN BANCORP, INC., 4000 GREENBRIAR, HOUSTON TX 77098
Manuel J Mehos director, officer: Chairman and CEO COASTAL BANCORP INC, 5718 WESTHEIMER SUITE 600, HOUSTON TX 77057
Geoffrey D. Greenwade officer: President C/O GREEN BANCORP, INC., 4000 GREENBRIAR, HOUSTON TX 77098