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Luzhou Bank CoHKSE:01983 -0.67%82 Return-on-Tangible-Equity is 9.67% as of Dec. 2025, which is 5% below its 10-year median of 10.14. GuruFocus rates HKSE:01983 with a GF Score™ of 82/100 and a GF Value™ of HK$2.58 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 1,520 Banks companies, Luzhou Bank Co ranks better than 53.03% 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. Luzhou Bank Co's annualized net income for the quarter that ended in Dec. 2025 was HK$1,412 Mil. Luzhou Bank Co's average shareholder tangible equity for the quarter that ended in Dec. 2025 was HK$14,606 Mil. Therefore, Luzhou Bank Co's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 9.67%.
The historical rank and industry rank for Luzhou Bank Co's Return-on-Tangible-Equity or its related term are showing as below:
HKSE:01983'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.48 Med: 10.14 Max: 15.22
Current: 11.95
During the past 11 years, Luzhou Bank Co's highest Return-on-Tangible-Equity was 15.22%. The lowest was 7.48%. And the median was 10.14%.
HKSE:01983's Return-on-Tangible-Equity is ranked better than 53.03% of 1520
companies
in the Banks industry
Industry Median: 11.44
vs HKSE:01983: 11.95
Luzhou Bank Co (HKSE:01983) 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.
Luzhou Bank Co Return-on-Tangible-Equity Related Terms
Luzhou Bank Co Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Luzhou Bank Co'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.
Luzhou Bank Co Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Luzhou Bank Co'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.
Luzhou Bank Co Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Luzhou Bank Co's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Luzhou Bank Co'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 (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.67% mean?
Luzhou Bank Co (HKSE:01983) has a Return-on-Tangible-Equity of 9.67% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Luzhou Bank Co and its competitors. This is near median its historical median of 10.14. Over the past decade, Luzhou Bank Co's Return-on-Tangible-Equity has ranged from 7.48 to 15.22. According to the industry distribution chart, Luzhou Bank Co ranks #714 out of 1520 companies in the Banks industry, placing it in the top 47%.
Is Luzhou Bank Co's Return-on-Tangible-Equity too high?
Luzhou Bank Co's current Return-on-Tangible-Equity of 9.67% is near median its 10-year median of 10.14. Over the past 10 years, this metric has ranged from a low of 7.48 to a high of 15.22. The Banks industry median Return-on-Tangible-Equity is 11.44. Luzhou Bank Co's value of 9.67% is 15.5% below this industry median. Based on the distribution chart, Luzhou Bank Co ranks #714 out of 1520 companies in the Banks industry, which is above the industry midpoint. Overall, Luzhou Bank Co has a GF Score™ of 82/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luzhou Bank Co's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Luzhou Bank Co ranks #714 out of 1520 companies for Return-on-Tangible-Equity. This puts Luzhou Bank Co in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.44. Luzhou Bank Co's value of 9.67% is 15.5% below this benchmark. Historically, Luzhou Bank Co's own Return-on-Tangible-Equity has ranged from 7.48 to 15.22 over the past decade. While the company's 10-year median is 10.14 vs. the industry median of 11.44, Luzhou Bank Co 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 11.44, based on 1,520 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. Luzhou Bank Co's current Return-on-Tangible-Equity of 9.67% is 15.5% 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 Luzhou Bank Co and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luzhou Bank Co's current Return-on-Tangible-Equity is 9.67%, which is near median its own 10-year median of 10.14. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luzhou Bank Co stock overvalued right now?
Based on GuruFocus' analysis, Luzhou Bank Co (HKSE:01983) is currently considered Modestly Undervalued. The stock's GF Value™ is HK$2.58, compared to a current price of HK$2.22 — trading 14.1% below its estimated fair value. The current Return-on-Tangible-Equity is 9.67%, which is near median its 10-year median of 10.14 and 15.5% below the Banks industry median of 11.44. Luzhou Bank Co's overall GF Score™ is 82/100 with 2 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 Luzhou Bank Co (HKSE:01983), the current Return-on-Tangible-Equity is 9.67% as of Dec. 2025. 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 Luzhou Bank Co (HKSE:01983) Overvalued in 2026?
Based on GuruFocus' analysis, Luzhou Bank Co stock appears to be undervalued.
The current stock price of HK$2.22 is trading 14.1% below its estimated GF Value™ of HK$2.58.
GuruFocus considers Luzhou Bank Co to be Modestly Undervalued.
Key valuation signals for HKSE:01983:
Return-on-Tangible-Equity: 9.67% (near median its 10-year median of 10.14)
GF Value™: HK$2.58 vs. price of HK$2.22 (14.1% below fair value)
Industry Position: 15.5% below the Banks median (#714 of 1520)
No single metric tells the full story. See the HKSE:01983 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Luzhou Bank Co Ltd is a commercial bank in Luzhou, providing financial services to its customers. The company's services include deposits, loans, e-banking, interbank finance, investment and financial management, deposit business, convenience finance, phone banking, personal online banking, and mobile banking. The operating business segments are Corporate Banking, Retail Banking, Financial Markets, and Others. The majority of revenue is derived from the Corporate banking segment.
82GF Score
Get the complete analysis for HKSE:01983
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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