Allam Bank BSCBAH:SALAM 42 Return-on-Tangible-Equity is 21.51% as of Mar. 2026, which is 177% above its 10-year median of 7.76. GuruFocus rates BAH:SALAM with a GF Score™ of 42/100 and a GF Value™ of BHD0.29 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 1,525 Banks companies, Allam Bank BSC ranks better than 89.05% 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. Allam Bank BSC's annualized net income for the quarter that ended in Mar. 2026 was BHD92.5 Mil. Allam Bank BSC's average shareholder tangible equity for the quarter that ended in Mar. 2026 was BHD430.2 Mil. Therefore, Allam Bank BSC's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 21.51%.
The historical rank and industry rank for Allam Bank BSC's Return-on-Tangible-Equity or its related term are showing as below:
BAH:SALAM'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.34 Med: 7.76 Max: 20.56
Current: 19.91
During the past 13 years, Allam Bank BSC's highest Return-on-Tangible-Equity was 20.56%. The lowest was 3.34%. And the median was 7.76%.
BAH:SALAM's Return-on-Tangible-Equity is ranked better than 89.05% of 1525
companies
in the Banks industry
Industry Median: 11.21
vs BAH:SALAM: 19.91
Allam Bank BSC (BAH:SALAM) 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.
Allam Bank BSC Return-on-Tangible-Equity Related Terms
Allam Bank BSC Return-on-Tangible-Equity Historical Data
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The historical data trend for Allam Bank BSC'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.
BAH:SALAM vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Allam Bank BSC'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.
Allam Bank BSC Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Allam Bank BSC's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Allam Bank BSC'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 four times the quarterly (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 21.51% mean?
Allam Bank BSC (BAH:SALAM) has a Return-on-Tangible-Equity of 21.51% 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 Allam Bank BSC and its competitors. This is 177% above median its historical median of 7.76. Over the past decade, Allam Bank BSC's Return-on-Tangible-Equity has ranged from 3.34 to 20.56. According to the industry distribution chart, Allam Bank BSC ranks #167 out of 1525 companies in the Banks industry, placing it in the top 11%.
Is Allam Bank BSC's Return-on-Tangible-Equity too high?
Allam Bank BSC's current Return-on-Tangible-Equity of 21.51% is 177% above median its 10-year median of 7.76. Over the past 10 years, this metric has ranged from a low of 3.34 to a high of 20.56. The Banks industry median Return-on-Tangible-Equity is 11.21. Allam Bank BSC's value of 21.51% is 91.9% above this industry median. Based on the distribution chart, Allam Bank BSC ranks #167 out of 1525 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Allam Bank BSC has a GF Score™ of 42/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Allam Bank BSC's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Allam Bank BSC ranks #167 out of 1525 companies for Return-on-Tangible-Equity. This places Allam Bank BSC in the top 11% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.21. Allam Bank BSC's value of 21.51% is 91.9% above this benchmark. Historically, Allam Bank BSC's own Return-on-Tangible-Equity has ranged from 3.34 to 20.56 over the past decade. While the company's 10-year median is 7.76 vs. the industry median of 11.21, Allam Bank BSC has consistently been above 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 11.21, based on 1,525 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. Allam Bank BSC's current Return-on-Tangible-Equity of 21.51% is 91.9% above 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 Allam Bank BSC and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.21 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Allam Bank BSC's current Return-on-Tangible-Equity is 21.51%, which is 177% above median its own 10-year median of 7.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Allam Bank BSC stock overvalued right now?
Based on GuruFocus' analysis, Allam Bank BSC (BAH:SALAM) is currently considered Modestly Undervalued. The stock's GF Value™ is BHD0.29, compared to a current price of BHD0.22 — trading 23.4% below its estimated fair value. The current Return-on-Tangible-Equity is 21.51%, which is 177% above median its 10-year median of 7.76 and 91.9% above the Banks industry median of 11.21. Allam Bank BSC's overall GF Score™ is 42/100 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 Allam Bank BSC (BAH:SALAM), the current Return-on-Tangible-Equity is 21.51% 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.
Is Allam Bank BSC (BAH:SALAM) Overvalued in 2026?
Based on GuruFocus' analysis, Allam Bank BSC stock appears to be undervalued.
The current stock price of BHD0.22 is trading 23.4% below its estimated GF Value™ of BHD0.29.
GuruFocus considers Allam Bank BSC to be Modestly Undervalued.
Key valuation signals for BAH:SALAM:
Return-on-Tangible-Equity: 21.51% (177% above median its 10-year median of 7.76)
GF Value™: BHD0.29 vs. price of BHD0.22 (23.4% below fair value)
Industry Position: 91.9% above the Banks median (#167 of 1525)
No single metric tells the full story. See the BAH:SALAM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Al Salam Bank BSC is a banking corporation operating in Bahrain. It provides various Islamic banking products and services in the Kingdom of Bahrain. The company offers money market, trading, and treasury services, including short-term commodities, managing portfolios, and serving clients with a range of investment products, funds, and alternative investments. Besides, it also manages the un-deployed capital of the company by investing it in high-quality financial instruments. The company's reportable segments namely Banking, Treasury, Takaful and Investments. It generates maximum revenue from the Banking segment.
42GF Score
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