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Preferred Bank (FRA:1IU) Return-on-Tangible-Equity : 15.33% (As of Mar. 2025)


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What is Preferred Bank 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. Preferred Bank's annualized net income for the quarter that ended in Mar. 2025 was €111.1 Mil. Preferred Bank's average shareholder tangible equity for the quarter that ended in Mar. 2025 was €724.5 Mil. Therefore, Preferred Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 15.33%.

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: 11.92   Med: 17.41   Max: 22.64
Current: 17.12

During the past 13 years, Preferred Bank's highest Return-on-Tangible-Equity was 22.64%. The lowest was 11.92%. And the median was 17.41%.

FRA:1IU's Return-on-Tangible-Equity is ranked better than
82.82% of 1577 companies
in the Banks industry
Industry Median: 10.2 vs FRA:1IU: 17.12

Preferred Bank Return-on-Tangible-Equity Historical Data

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.

* Premium members only.

Preferred Bank Return-on-Tangible-Equity Chart

Preferred Bank Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.36 17.72 21.83 22.33 18.27

Preferred Bank Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 19.23 18.98 17.86 16.44 15.33

Competitive Comparison of Preferred Bank's Return-on-Tangible-Equity

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's Return-on-Tangible-Equity Distribution in the 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.


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Preferred Bank Return-on-Tangible-Equity Calculation

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

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=124.782/( (637.411+728.81 )/ 2 )
=124.782/683.1105
=18.27 %

Preferred Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=111.088/( (728.81+720.209)/ 2 )
=111.088/724.5095
=15.33 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


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

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


Preferred Bank Business Description

Traded in Other Exchanges
Address
601 S. Figueroa Street, 48th Floor, Los Angeles, CA, USA, 90017
Preferred Bank is a commercial bank located in California. Its products and services are divided into Personal Banking, Business Banking, and Commercial Banking which includes 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. The bank generates a majority of its revenue from Southern and Northern California and Flushing.

Preferred Bank Headlines

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