Habib Metropolitan BankKAR:HMB +1.08%61 Return-on-Tangible-Equity is 15.73% as of Mar. 2026, which is 20% below its 10-year median of 19.72. GuruFocus rates KAR:HMB with a GF Score™ of 61/100 and a GF Value™ of ₨78.18 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,522 Banks companies, Habib Metropolitan Bank ranks better than 84.36% 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. Habib Metropolitan Bank's annualized net income for the quarter that ended in Mar. 2026 was ₨19,658 Mil. Habib Metropolitan Bank's average shareholder tangible equity for the quarter that ended in Mar. 2026 was ₨124,945 Mil. Therefore, Habib Metropolitan Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.73%.
The historical rank and industry rank for Habib Metropolitan Bank's Return-on-Tangible-Equity or its related term are showing as below:
KAR:HMB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 14.18 Med: 19.72 Max: 29.14
Current: 17.63
During the past 13 years, Habib Metropolitan Bank's highest Return-on-Tangible-Equity was 29.14%. The lowest was 14.18%. And the median was 19.72%.
KAR:HMB's Return-on-Tangible-Equity is ranked better than 84.36% of 1522
companies
in the Banks industry
Industry Median: 11.19
vs KAR:HMB: 17.63
Habib Metropolitan Bank (KAR:HMB) 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.
Habib Metropolitan Bank Return-on-Tangible-Equity Related Terms
Habib Metropolitan Bank Return-on-Tangible-Equity Historical Data
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The historical data trend for Habib Metropolitan 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.
Habib Metropolitan Bank Return-on-Tangible-Equity Chart
Habib Metropolitan Bank Return-on-Tangible-Equity Competitor Comparison
For the Banks - Regional subindustry, Habib Metropolitan 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.
Habib Metropolitan Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Habib Metropolitan Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Habib Metropolitan 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 15.73% mean?
Habib Metropolitan Bank (KAR:HMB) has a Return-on-Tangible-Equity of 15.73% 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 Habib Metropolitan Bank and its competitors. This is 20% below median its historical median of 19.72. Over the past decade, Habib Metropolitan Bank's Return-on-Tangible-Equity has ranged from 14.18 to 29.14. According to the industry distribution chart, Habib Metropolitan Bank ranks #238 out of 1522 companies in the Banks industry, placing it in the top 15.6%.
Is Habib Metropolitan Bank's Return-on-Tangible-Equity too high?
Habib Metropolitan Bank's current Return-on-Tangible-Equity of 15.73% is 20% below median its 10-year median of 19.72. Over the past 10 years, this metric has ranged from a low of 14.18 to a high of 29.14. The Banks industry median Return-on-Tangible-Equity is 11.19. Habib Metropolitan Bank's value of 15.73% is 40.6% above this industry median. Based on the distribution chart, Habib Metropolitan Bank ranks #238 out of 1522 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Habib Metropolitan Bank has a GF Score™ of 61/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Habib Metropolitan Bank's Return-on-Tangible-Equity compare to competitors?
According to the Banks industry distribution chart, Habib Metropolitan Bank ranks #238 out of 1522 companies for Return-on-Tangible-Equity. This places Habib Metropolitan Bank in the top 16% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.19. Habib Metropolitan Bank's value of 15.73% is 40.6% above this benchmark. Historically, Habib Metropolitan Bank's own Return-on-Tangible-Equity has ranged from 14.18 to 29.14 over the past decade. While the company's 10-year median is 19.72 vs. the industry median of 11.19, Habib Metropolitan 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 11.19, based on 1,522 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. Habib Metropolitan Bank's current Return-on-Tangible-Equity of 15.73% is 40.6% 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 Habib Metropolitan Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.19 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Habib Metropolitan Bank's current Return-on-Tangible-Equity is 15.73%, which is 20% below median its own 10-year median of 19.72. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Habib Metropolitan Bank stock overvalued right now?
Based on GuruFocus' analysis, Habib Metropolitan Bank (KAR:HMB) is currently considered Significantly Overvalued. The stock's GF Value™ is ₨78.18, compared to a current price of ₨120.32 — trading 53.9% above its estimated fair value. The current Return-on-Tangible-Equity is 15.73%, which is 20% below median its 10-year median of 19.72 and 40.6% above the Banks industry median of 11.19. Habib Metropolitan Bank's overall GF Score™ is 61/100 with 7 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 Habib Metropolitan Bank (KAR:HMB), the current Return-on-Tangible-Equity is 15.73% 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 Habib Metropolitan Bank (KAR:HMB) Overvalued in 2026?
Based on GuruFocus' analysis, Habib Metropolitan Bank stock appears to be overvalued.
The current stock price of ₨120.32 is trading 53.9% above its estimated GF Value™ of ₨78.18.
GuruFocus considers Habib Metropolitan Bank to be Significantly Overvalued.
Key valuation signals for KAR:HMB:
Return-on-Tangible-Equity: 15.73% (20% below median its 10-year median of 19.72)
GF Value™: ₨78.18 vs. price of ₨120.32 (53.9% above fair value)
Industry Position: 40.6% above the Banks median (#238 of 1522)
No single metric tells the full story. See the KAR:HMB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Habib Metropolitan Bank Ltd is a provider of commercial banking products and services to individual and corporate customers. The bank utilizes the medium of branch banking and electronic banking channels to render a hoard of products and services such as current and savings accounts, deposits, remittance, cash management services, E-salary accounts and web banking. Its operating segment includes Trade and Sales; Retail Banking and Commercial Banking, and Islamic Banking. The Bank conducts its operations in Pakistan including an offshore branch in Karachi Export Processing Zone.
61GF Score
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