BankIslami PakistanKAR:BIPL +0.68%64 Return-on-Tangible-Equity is 8.50% as of Mar. 2026, which is 31% below its 10-year median of 12.36. GuruFocus rates KAR:BIPL with a GF Score™ of 64/100 and a GF Value™ of ₨24.62 (Modestly Overvalued). The stock has 5 warning signs investors should review. Among 1,526 Banks companies, BankIslami Pakistan ranks worse than 57.47% 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. BankIslami Pakistan's annualized net income for the quarter that ended in Mar. 2026 was ₨3,616 Mil. BankIslami Pakistan's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨42,546 Mil. Therefore, BankIslami Pakistan's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 8.50%.
The historical rank and industry rank for BankIslami Pakistan's Return-on-Tangible-Equity or its related term are showing as below:
KAR:BIPL'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.94 Med: 12.36 Max: 37.77
Current: 10.04
During the past 13 years, BankIslami Pakistan's highest Return-on-Tangible-Equity was 37.77%. The lowest was 2.94%. And the median was 12.36%.
KAR:BIPL's Return-on-Tangible-Equity is ranked worse than 57.47% of 1526
companies
in the Banks industry
Industry Median: 11.195
vs KAR:BIPL: 10.04
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.
BankIslami Pakistan Return-on-Tangible-Equity Related Terms
BankIslami Pakistan Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for BankIslami Pakistan'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.
KAR:BIPL vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, BankIslami Pakistan'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.
BankIslami Pakistan Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, BankIslami Pakistan's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where BankIslami Pakistan'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 8.50% mean?
BankIslami Pakistan (KAR:BIPL) has a Return-on-Tangible-Equity of 8.50% 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 BankIslami Pakistan and its competitors. This is 31% below median its historical median of 12.36. Over the past decade, BankIslami Pakistan's Return-on-Tangible-Equity has ranged from 2.94 to 37.77. According to the industry distribution chart, BankIslami Pakistan ranks #877 out of 1526 companies in the Banks industry, placing it in the top 57.5%.
Is BankIslami Pakistan's Return-on-Tangible-Equity too high?
BankIslami Pakistan's current Return-on-Tangible-Equity of 8.50% is 31% below median its 10-year median of 12.36. Over the past 10 years, this metric has ranged from a low of 2.94 to a high of 37.77. The Banks industry median Return-on-Tangible-Equity is 11.20. BankIslami Pakistan's value of 8.50% is 24.1% below this industry median. Based on the distribution chart, BankIslami Pakistan ranks #877 out of 1526 companies in the Banks industry, which is below the industry midpoint. Overall, BankIslami Pakistan has a GF Score™ of 64/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does BankIslami Pakistan's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, BankIslami Pakistan ranks #877 out of 1526 companies for Return-on-Tangible-Equity. This places BankIslami Pakistan in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.20. BankIslami Pakistan's value of 8.50% is 24.1% below this benchmark. Historically, BankIslami Pakistan's own Return-on-Tangible-Equity has ranged from 2.94 to 37.77 over the past decade. While the company's 10-year median is 12.36 vs. the industry median of 11.20, BankIslami Pakistan 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 1,526 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. BankIslami Pakistan's current Return-on-Tangible-Equity of 8.50% is 24.1% 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 BankIslami Pakistan 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. BankIslami Pakistan's current Return-on-Tangible-Equity is 8.50%, which is 31% below median its own 10-year median of 12.36. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is BankIslami Pakistan stock overvalued right now?
Based on GuruFocus' analysis, BankIslami Pakistan (KAR:BIPL) is currently considered Modestly Overvalued. The stock's GF Value™ is ₨24.62, compared to a current price of ₨28.20 — trading 14.5% above its estimated fair value. The current Return-on-Tangible-Equity is 8.50%, which is 31% below median its 10-year median of 12.36 and 24.1% below the Banks industry median of 11.20. BankIslami Pakistan's overall GF Score™ is 64/100 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 BankIslami Pakistan (KAR:BIPL), the current Return-on-Tangible-Equity is 8.50% 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 BankIslami Pakistan (KAR:BIPL) Overvalued in 2026?
Based on GuruFocus' analysis, BankIslami Pakistan stock appears to be overvalued.
The current stock price of ₨28.20 is trading 14.5% above its estimated GF Value™ of ₨24.62.
GuruFocus considers BankIslami Pakistan to be Modestly Overvalued.
Key valuation signals for KAR:BIPL:
Return-on-Tangible-Equity: 8.50% (31% below median its 10-year median of 12.36)
GF Value™: ₨24.62 vs. price of ₨28.20 (14.5% above fair value)
Industry Position: 24.1% below the Banks median (#877 of 1526)
No single metric tells the full story. See the KAR:BIPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
BankIslami Pakistan Ltd provides various banking products and services in Pakistan. The Bank's segments include Trading and Sales including equity, foreign exchanges, commodities, money market placements, and Shariah-compliant debt investments; Retail Banking includes retail Islamic financing and related assets, deposits, and banking services offered to the Bank's retail customers; and Commercial Banking includes investment banking business, trade business and Islamic financing and related assets relating to the Bank's corporate, SME and agriculture customers; and Support Centre segment includes the assets and liabilities relating to support functions at Head Office and their related income and expenses. The Majority of revenue derives from the Retail Banking segment. Operates in Pakistan.
64GF Score
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