Westpac BankingASX:WESSWG 67 Return-on-Tangible-Equity is 11.12% as of Mar. 2026, which is 4% below its 10-year median of 11.62. GuruFocus rates ASX:WESSWG with a GF Score™ of 67/100. The stock has 3 warning signs investors should review. Among 1,523 Banks companies, Westpac Banking ranks better than 51.54% on this metric.
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. Westpac Banking's annualized net income for the quarter that ended in Mar. 2026 was A$6,828.00 Mil. Westpac Banking's average shareholder tangible equity for the quarter that ended in Mar. 2026 was A$61,429.00 Mil. Therefore, Westpac Banking's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 11.12%.
The historical rank and industry rank for Westpac Banking's Return-on-Tangible-Equity or its related term are showing as below:
ASX:WESSWG'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 4.16 Med: 11.62 Max: 16.94
Current: 11.42
During the past 13 years, Westpac Banking's highest Return-on-Tangible-Equity was 16.94%. The lowest was 4.16%. And the median was 11.62%.
ASX:WESSWG's Return-on-Tangible-Equity is ranked better than 51.54% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs ASX:WESSWG: 11.42
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.
Westpac Banking Return-on-Tangible-Equity Related Terms
Westpac Banking Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Westpac Banking'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.
ASX:WESSWG vs JPM, BAC, WFC: Return-on-Tangible-Equity Comparison
For the Banks - Diversified subindustry, Westpac Banking'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.
Westpac Banking Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Westpac Banking's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Westpac Banking's Return-on-Tangible-Equity falls into.
* 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 two times the semi-annual (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 11.12% mean?
Westpac Banking (ASX:WESSWG) has a Return-on-Tangible-Equity of 11.12% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Westpac Banking and its competitors. This is near median its historical median of 11.62. Over the past decade, Westpac Banking's Return-on-Tangible-Equity has ranged from 4.16 to 16.94. According to the industry distribution chart, Westpac Banking ranks #738 out of 1523 companies in the Banks industry, placing it in the top 48.5%.
Is Westpac Banking's Return-on-Tangible-Equity too high?
Westpac Banking's current Return-on-Tangible-Equity of 11.12% is near median its 10-year median of 11.62. Over the past 10 years, this metric has ranged from a low of 4.16 to a high of 16.94. The Banks industry median Return-on-Tangible-Equity is 11.20. Westpac Banking's value of 11.12% is 0.7% below this industry median. Based on the distribution chart, Westpac Banking ranks #738 out of 1523 companies in the Banks industry, which is above the industry midpoint. Overall, Westpac Banking has a GF Score™ of 67/100, reflecting its overall financial health beyond just this single metric.
How does Westpac Banking's Return-on-Tangible-Equity compare to JPM and BAC?
According to the Banks industry distribution chart, Westpac Banking ranks #738 out of 1523 companies for Return-on-Tangible-Equity. This puts Westpac Banking in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.20. Westpac Banking's value of 11.12% is 0.7% below this benchmark. Historically, Westpac Banking's own Return-on-Tangible-Equity has ranged from 4.16 to 16.94 over the past decade. While the company's 10-year median is 11.62 vs. the industry median of 11.20, Westpac Banking has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Banks company?
The median Return-on-Tangible-Equity among Banks companies is 11.20, based on 1,523 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Westpac Banking's current Return-on-Tangible-Equity of 11.12% is 0.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Westpac Banking and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Westpac Banking's current Return-on-Tangible-Equity is 11.12%, which is near median its own 10-year median of 11.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Westpac Banking stock overvalued right now?
Westpac Banking (ASX:WESSWG) has a current Return-on-Tangible-Equity of 11.12%. The current Return-on-Tangible-Equity is 11.12%, which is near median its 10-year median of 11.62 and 0.7% below the Banks industry median of 11.20. Westpac Banking's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Westpac Banking (ASX:WESSWG), the current Return-on-Tangible-Equity is 11.12% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Westpac is Australia's oldest bank and financial services group, with a significant franchise in Australia and New Zealand in the consumer, small business, corporate, and institutional sectors, in addition to its major presence in wealth management. Westpac is among a handful of banks around the globe currently retaining very high credit ratings. The bank benefits from a large national branch network and significant market share, particularly in home loans and retail deposits.
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