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Preferred BankFRA:1IU -1.59%69 Return-on-Tangible-Equity is 16.08% as of Mar. 2026, which is 8% below its 10-year median of 17.45. GuruFocus rates FRA:1IU with a GF Score™ of 69/100 and a GF Value™ of €78.47. The stock has 5 warning signs investors should review. Among 1,521 Banks companies, Preferred Bank ranks better than 83.76% 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. Preferred Bank's annualized net income for the quarter that ended in Mar. 2026 was €107.8 Mil. Preferred Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €670.2 Mil. Therefore, Preferred Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 16.08%.
The historical rank and industry rank for Preferred Bank's Return-on-Tangible-Equity or its related term are showing as below:
FRA:1IU'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 12.94 Med: 17.45 Max: 22.64
Current: 17.45
During the past 13 years, Preferred Bank's highest Return-on-Tangible-Equity was 22.64%. The lowest was 12.94%. And the median was 17.45%.
FRA:1IU's Return-on-Tangible-Equity is ranked better than 83.76% of 1521
companies
in the Banks industry
Industry Median: 11.24
vs FRA:1IU: 17.45
Preferred Bank (FRA:1IU) 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.
Preferred Bank Return-on-Tangible-Equity Related Terms
Preferred Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Preferred Bank'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.
FRA:1IU vs MCB, UVSP, HFWA: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Preferred Bank'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.
Preferred Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Preferred Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Preferred Bank'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 16.08% mean?
Preferred Bank (FRA:1IU) has a Return-on-Tangible-Equity of 16.08% 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 Preferred Bank and its competitors. This is near median its historical median of 17.45. Over the past decade, Preferred Bank's Return-on-Tangible-Equity has ranged from 12.94 to 22.64. According to the industry distribution chart, Preferred Bank ranks #247 out of 1521 companies in the Banks industry, placing it in the top 16.2%.
Is Preferred Bank's Return-on-Tangible-Equity too high?
Preferred Bank's current Return-on-Tangible-Equity of 16.08% is near median its 10-year median of 17.45. Over the past 10 years, this metric has ranged from a low of 12.94 to a high of 22.64. The Banks industry median Return-on-Tangible-Equity is 11.24. Preferred Bank's value of 16.08% is 43.1% above this industry median. Based on the distribution chart, Preferred Bank ranks #247 out of 1521 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Preferred Bank has a GF Score™ of 69/100, reflecting its overall financial health beyond just this single metric.
How does Preferred Bank's Return-on-Tangible-Equity compare to MCB and UVSP?
According to the Banks industry distribution chart, Preferred Bank ranks #247 out of 1521 companies for Return-on-Tangible-Equity. This places Preferred Bank in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.24. Preferred Bank's value of 16.08% is 43.1% above this benchmark. Historically, Preferred Bank's own Return-on-Tangible-Equity has ranged from 12.94 to 22.64 over the past decade. While the company's 10-year median is 17.45 vs. the industry median of 11.24, Preferred Bank 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 11.24, based on 1,521 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. Preferred Bank's current Return-on-Tangible-Equity of 16.08% is 43.1% 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 Preferred Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Preferred Bank's current Return-on-Tangible-Equity is 16.08%, which is near median its own 10-year median of 17.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Preferred Bank stock overvalued right now?
Preferred Bank (FRA:1IU) has a current Return-on-Tangible-Equity of 16.08%. The stock's GF Value™ is €78.47, compared to a current price of €93.00 — trading 18.5% above its estimated fair value. The current Return-on-Tangible-Equity is 16.08%, which is near median its 10-year median of 17.45 and 43.1% above the Banks industry median of 11.24. Preferred Bank's overall GF Score™ is 69/100 with 5 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 Preferred Bank (FRA:1IU), the current Return-on-Tangible-Equity is 16.08% 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 Preferred Bank (FRA:1IU) Overvalued in 2026?
Based on GuruFocus' analysis, Preferred Bank stock appears to be overvalued.
The current stock price of €93.00 is trading 18.5% above its estimated GF Value™ of €78.47.
Key valuation signals for FRA:1IU:
Return-on-Tangible-Equity: 16.08% (near median its 10-year median of 17.45)
GF Value™: €78.47 vs. price of €93.00 (18.5% above fair value)
Industry Position: 43.1% above the Banks median (#247 of 1521)
No single metric tells the full story. See the FRA:1IU stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking, which include Checking accounts, Savings accounts, CDs, Loans and Credit, Electronic banking, and Treasury Management. It provides personalized deposit services, real estate finance, commercial loans, and trade finance credit facilities to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high-net-worth individuals.
69GF Score
Get the complete analysis for FRA:1IU
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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