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MB Financial (MB Financial) ROE % : 10.12% (As of Dec. 2018)


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What is MB Financial ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MB Financial's annualized net income for the quarter that ended in Dec. 2018 was $303.6 Mil. MB Financial's average Total Stockholders Equity over the quarter that ended in Dec. 2018 was $3,000.1 Mil. Therefore, MB Financial's annualized ROE % for the quarter that ended in Dec. 2018 was 10.12%.

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

MBFI's ROE % is not ranked *
in the Banks industry.
Industry Median: 9.88
* Ranked among companies with meaningful ROE % only.

MB Financial ROE % Historical Data

The historical data trend for MB Financial'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.

MB Financial ROE % Chart

MB Financial Annual Data
Trend Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.14 7.73 7.47 10.88 7.08

MB Financial Quarterly Data
Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18
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 20.23 7.64 5.24 5.78 10.12

Competitive Comparison of MB Financial's ROE %

For the Banks - Regional subindustry, MB Financial'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.


MB Financial's ROE % Distribution in the Banks Industry

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

* The bar in red indicates where MB Financial's ROE % falls into.



MB Financial ROE % Calculation

MB Financial's annualized ROE % for the fiscal year that ended in Dec. 2018 is calculated as

ROE %=Net Income (A: Dec. 2018 )/( (Total Stockholders Equity (A: Dec. 2017 )+Total Stockholders Equity (A: Dec. 2018 ))/ count )
=213.915/( (3009.823+3034.848)/ 2 )
=213.915/3022.3355
=7.08 %

MB Financial's annualized ROE % for the quarter that ended in Dec. 2018 is calculated as

ROE %=Net Income (Q: Dec. 2018 )/( (Total Stockholders Equity (Q: Sep. 2018 )+Total Stockholders Equity (Q: Dec. 2018 ))/ count )
=303.644/( (2965.329+3034.848)/ 2 )
=303.644/3000.0885
=10.12 %

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


MB Financial  (NAS:MBFI) 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: Dec. 2018 )
=Net Income/Total Stockholders Equity
=303.644/3000.0885
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(303.644 / 977.416)*(977.416 / 19963.4985)*(19963.4985 / 3000.0885)
=Net Margin %*Asset Turnover*Equity Multiplier
=31.07 %*0.049*6.6543
=ROA %*Equity Multiplier
=1.52 %*6.6543
=10.12 %

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: Dec. 2018 )
=Net Income/Total Stockholders Equity
=303.644/3000.0885
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (303.644 / 326.304) * (326.304 / 977.416) * (977.416 / 19963.4985) * (19963.4985 / 3000.0885)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.9306 * 33.38 % * 0.049 * 6.6543
=10.12 %

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


MB Financial ROE % Related Terms

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


MB Financial (MB Financial) Business Description

Traded in Other Exchanges
N/A
Address
800 West Madison Street, Chicago, IL, USA, 60607
MB Financial Inc is a financial holding company. The company operates scores of banking offices located primarily in the Chicago metropolitan area through its bank subsidiary, MB Financial Bank. The bank offers an array of financial services primarily to small and middle market businesses and individuals in the markets it serves. Its primary business segments include banking, leasing, and mortgage banking. The company emphasizes and has historically grown through a number of acquisitions. Its banking segment has the following primary lines of business, including commercial banking, lease banking, retail banking, and wealth management. Its loan portfolio is concentrated in business loans, and a substantial portion is secured by real estate.
Executives
Mark A Hoppe director, other: CEO & President of Subsidiary 2500 CRABTREE LANE, NORTHBROOK IL 60062
Mitchell Feiger director, officer: President and CEO C/O MB FINANCIAL INC, 1200 NORTH ASHLAND AVE, CHICAGO IL 60622
Sunil Garg director C/O MB FINANCIAL, INC., 6111 NORTH RIVER ROAD, ROSEMONT IL 60018
John Francoeur officer: Chief Accounting Officer C/O MB FINANCIAL, INC., 6111 NORTH RIVER ROAD, ROSEMONT IL 60018
Renee Togher director C/O MB FINANCIAL INC., 6111 N RIVER ROAD, ROSEMONT IL 60018
Mark Alexander Heckler other: Exec. Officer of Subsidiary C/O MB FINANCIAL INC/MD, 1200 NORTH ASHLAND AVENUE, CHICAGO IL 60622
Randall Conte officer: Vice President and CFO 9550 WEST HIGGINS ROAD, ROSEMONT IL 60018
Brian J Wildman other: Exec. Officer of Subsidiary C/O MB FINANCIAL INC, 6111 NORTH RIVER ROAD, ROSEMONT IL 60018
Jill E York officer: Vice President C/O MB FINANCIAL INC, 6111 NORTH RIVER ROAD, ROSEMONT IL 60018
Richard J Holmstrom director C/O MB FINANCIAL INC, 1200 NORTH ASHLAND AVE, CHICAGO IL 60622
James N Hallene director C/O MB FINANCIAL INC, 1200 NORTH ASHLAND AVE, CHICAGO IL 60622
Rose Marie Bouman other: Exec Officer of Subsidiary C/O OAK BROOK BANK, 1400 SIXTEENTH ST, OAK BROOK IL 60523
David P Bolger director 200 EST RANDOLPH ST, CHICAGO IL 60601
Karen J May director KRAFT FOODS INC., THREE LAKES DRIVE, NORTHFIELD IL 60093
C. Bryan Daniels director MB FINANCIAL INC/MD, 6111 NORTH RIVER ROAD, ROSEMONT IL 60018