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PrivateBancorp (PrivateBancorp) ROE % : 11.84% (As of Mar. 2017)


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What is PrivateBancorp ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. PrivateBancorp's annualized net income for the quarter that ended in Mar. 2017 was $231.8 Mil. PrivateBancorp's average Total Stockholders Equity over the quarter that ended in Mar. 2017 was $1,957.3 Mil. Therefore, PrivateBancorp's annualized ROE % for the quarter that ended in Mar. 2017 was 11.84%.

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

PVTB's ROE % is not ranked *
in the Banks industry.
Industry Median: 9.72
* Ranked among companies with meaningful ROE % only.

PrivateBancorp ROE % Historical Data

The historical data trend for PrivateBancorp'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.

PrivateBancorp ROE % Chart

PrivateBancorp Annual Data
Trend Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.22 9.80 11.00 11.65 11.52

PrivateBancorp Quarterly Data
Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17
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 11.43 11.19 10.53 12.53 11.84

Competitive Comparison of PrivateBancorp's ROE %

For the Banks - Regional subindustry, PrivateBancorp'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.


PrivateBancorp's ROE % Distribution in the Banks Industry

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

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



PrivateBancorp ROE % Calculation

PrivateBancorp's annualized ROE % for the fiscal year that ended in Dec. 2016 is calculated as

ROE %=Net Income (A: Dec. 2016 )/( (Total Stockholders Equity (A: Dec. 2015 )+Total Stockholders Equity (A: Dec. 2016 ))/ count )
=208.357/( (1698.951+1919.675)/ 2 )
=208.357/1809.313
=11.52 %

PrivateBancorp's annualized ROE % for the quarter that ended in Mar. 2017 is calculated as

ROE %=Net Income (Q: Mar. 2017 )/( (Total Stockholders Equity (Q: Dec. 2016 )+Total Stockholders Equity (Q: Mar. 2017 ))/ count )
=231.808/( (1919.675+1994.991)/ 2 )
=231.808/1957.333
=11.84 %

* 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 (Mar. 2017) net income data. ROE % is displayed in the 30-year financial page.


PrivateBancorp  (NAS:PVTB) 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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=231.808/1957.333
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(231.808 / 793.204)*(793.204 / 20234.9955)*(20234.9955 / 1957.333)
=Net Margin %*Asset Turnover*Equity Multiplier
=29.22 %*0.0392*10.338
=ROA %*Equity Multiplier
=1.15 %*10.338
=11.84 %

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: Mar. 2017 )
=Net Income/Total Stockholders Equity
=231.808/1957.333
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (231.808 / 317.936) * (317.936 / 793.204) * (793.204 / 20234.9955) * (20234.9955 / 1957.333)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7291 * 40.08 % * 0.0392 * 10.338
=11.84 %

Note: The net income data used here is four times the quarterly (Mar. 2017) net income data. The Revenue data used here is four times the quarterly (Mar. 2017) 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.


PrivateBancorp ROE % Related Terms

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


PrivateBancorp (PrivateBancorp) Business Description

Traded in Other Exchanges
N/A
Address
PrivateBancorp provides financial services to wealthy individuals and their families. It operates seven offices in the Chicago area, and one in St. Louis, Missouri. Services include checking, savings, and money market accounts, as well as residential and commercial loans. PrivateBancorp also provides estate planning and trust administration, brokerage accounts, and retirement planning. The company offers investment counsel through its Lodestar subsidiary, in which it has an 80% stake.
Executives
Michelle L Collins director C/O MOLEX INCORPORATED, 2222 WELLINGTON COURT, LISLE IL 60503
William R Rybak director 2020 CALAMOS COURT, NAPERVILE IL 60563
Edward W Rabin director 200 WEST MADISON STE.3900, CHICAGO IL 60606
Cheryl Mayberry Mckissack director 3680 VICTORIA ST. N., C/O DELUXE CORP, SHOREVIEW MN 55126
Norman Bobins director 1100 N. WOOD DALE ROAD, WOOD DALE IL 60191
James Bruce Nicholson director 500 KIRTS BLVD, TROY MI 48084
Kevin M Killips officer: Chief Financial Officer 2500 LAKE COOK ROAD, RIVERWOODS IL 60015
Diane Aigotti director C/O PRIVATEBANCORP,INC., 120 SOUTH LASALLE STREET - LEGAL DEPT., CHICAGO IL 60603
Alejandro Silva director 4118 SOUTH HALSTED STREET, CHICAGO IL 60609
James M Guyette director 111 TOLLGATE WAY, FALLS CHURCH VA 22046
Gtcr Golder Rauner Ii Llc director
Roche Collin E director 303 PERIMETER CENTER NORTH, SUITE 600, ATLANTA GA 30346
Gary S Collins officer: Pres. The PrivateClients Group 913 SOUTH BOULEVARD, OAK PARK IL 60302
John B Williams officer: Chief Operating Officer C/O ASSOCIATED BANC-CORP, 433 MAIN STREET, GREEN BAY WI 54301
Dennis L Klaeser officer: Chief Financial Officer 235 EAST MAIN STREET, MIDLAND MI 48640

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