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EQB (TSX:EQB) Return-on-Tangible-Equity : 12.30% (As of Apr. 2025)


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What is EQB Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. EQB's annualized net income for the quarter that ended in Apr. 2025 was C$360 Mil. EQB's average shareholder tangible equity for the quarter that ended in Apr. 2025 was C$2,925 Mil. Therefore, EQB's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2025 was 12.30%.

The historical rank and industry rank for EQB's Return-on-Tangible-Equity or its related term are showing as below:

TSX:EQB' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.94   Med: 15.59   Max: 17.19
Current: 13.61

During the past 13 years, EQB's highest Return-on-Tangible-Equity was 17.19%. The lowest was 12.94%. And the median was 15.59%.

TSX:EQB's Return-on-Tangible-Equity is ranked better than
69% of 1584 companies
in the Banks industry
Industry Median: 10.07 vs TSX:EQB: 13.61

EQB Return-on-Tangible-Equity Historical Data

The historical data trend for EQB's Return-on-Tangible-Equity 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.

EQB Return-on-Tangible-Equity Chart

EQB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Oct24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.62 15.14 17.19 12.94 15.55

EQB Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25
Return-on-Tangible-Equity 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 16.02 15.99 11.03 15.01 12.30

Competitive Comparison of EQB's Return-on-Tangible-Equity

For the Banks - Regional subindustry, EQB's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.


EQB's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, EQB's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where EQB's Return-on-Tangible-Equity falls into.


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EQB Return-on-Tangible-Equity Calculation

EQB's annualized Return-on-Tangible-Equity for the fiscal year that ended in Oct. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Oct. 2024 )  (A: Dec. 2022 )(A: Oct. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Oct. 2024 )  (A: Dec. 2022 )(A: Oct. 2024 )
=400.562/( (2331.865+2818.586 )/ 2 )
=400.562/2575.2255
=15.55 %

EQB's annualized Return-on-Tangible-Equity for the quarter that ended in Apr. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Apr. 2025 )  (Q: Jan. 2025 )(Q: Apr. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Apr. 2025 )  (Q: Jan. 2025 )(Q: Apr. 2025 )
=359.772/( (2905.466+2944.442)/ 2 )
=359.772/2924.954
=12.30 %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Apr. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


EQB  (TSX:EQB) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


EQB Return-on-Tangible-Equity Related Terms

Thank you for viewing the detailed overview of EQB's Return-on-Tangible-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


EQB Business Description

Industry
Traded in Other Exchanges
Address
30 St. Clair Avenue West, Suite 700, Toronto, ON, CAN, M4V 3A1
EQB Inc operates through its wholly owned subsidiary, Equitable Bank, Canada's Challenger BankTM. It serves Canadians through two business lines, Personal Banking and Business Banking. The company differentiates by providing a host of challenger bank deposit services, alternative single-family lending, reverse mortgage lending, insurance lending, Specialized finance, Commercial finance group, Equipment financing, credit union services and trust services.
Executives
Smith Financial Corporation 10% Security Holder
Stephen Smith 10% Security Holder
Andrew Moor Senior Officer
Katherine Ruta Senior Officer
Chadwick Westlake Senior Officer
Timothy Paul Charron Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Daniel Broten Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Michael Paul Mignardi Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6), Senior Officer
Darren Lorimer Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Isabelle Farella Senior Officer
Mahima Poddar Director or Senior Officer of Insider or Subsidiary (other than in 4,5,6)
Michael Stramaglia Director
David Wilkes Senior Officer
Yongah Kim Director
Oakwest Corporation Limited 10% Security Holder

EQB Headlines

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