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Arbuthnot Banking GroupLSE:ARBB +0.60%67 Return-on-Tangible-Equity is 9.04% as of Dec. 2025, which is 58% above its 10-year median of 5.71. GuruFocus rates LSE:ARBB with a GF Score™ of 67/100 and a GF Value™ of £7.52 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,523 Banks companies, Arbuthnot Banking Group ranks worse than 71.7% 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. Arbuthnot Banking Group's annualized net income for the quarter that ended in Dec. 2025 was £21.7 Mil. Arbuthnot Banking Group's average shareholder tangible equity for the quarter that ended in Dec. 2025 was £240.6 Mil. Therefore, Arbuthnot Banking Group's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 9.04%.
The historical rank and industry rank for Arbuthnot Banking Group's Return-on-Tangible-Equity or its related term are showing as below:
LSE:ARBB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -10.02 Med: 5.71 Max: 98.17
Current: 7.45
During the past 13 years, Arbuthnot Banking Group's highest Return-on-Tangible-Equity was 98.17%. The lowest was -10.02%. And the median was 5.71%.
LSE:ARBB's Return-on-Tangible-Equity is ranked worse than 71.7% of 1523
companies
in the Banks industry
Industry Median: 11.23
vs LSE:ARBB: 7.45
Arbuthnot Banking Group (LSE:ARBB) 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.
Arbuthnot Banking Group Return-on-Tangible-Equity Related Terms
Arbuthnot Banking Group Return-on-Tangible-Equity Historical Data
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The historical data trend for Arbuthnot Banking Group'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.
Arbuthnot Banking Group Return-on-Tangible-Equity Chart
LSE:ARBB vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Arbuthnot Banking Group'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.
Arbuthnot Banking Group Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Arbuthnot Banking Group's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arbuthnot Banking Group'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 9.04% mean?
Arbuthnot Banking Group (LSE:ARBB) has a Return-on-Tangible-Equity of 9.04% 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 Arbuthnot Banking Group and its competitors. This is 58% above median its historical median of 5.71. According to the industry distribution chart, Arbuthnot Banking Group ranks #1092 out of 1523 companies in the Banks industry, placing it in the top 71.7%.
Is Arbuthnot Banking Group's Return-on-Tangible-Equity too high?
Arbuthnot Banking Group's current Return-on-Tangible-Equity of 9.04% is 58% above median its 10-year median of 5.71. The Banks industry median Return-on-Tangible-Equity is 11.23. Arbuthnot Banking Group's value of 9.04% is 19.5% below this industry median. Based on the distribution chart, Arbuthnot Banking Group ranks #1092 out of 1523 companies in the Banks industry, which is below the industry midpoint. Overall, Arbuthnot Banking Group has a GF Score™ of 67/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Arbuthnot Banking Group's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Arbuthnot Banking Group ranks #1092 out of 1523 companies for Return-on-Tangible-Equity. This places Arbuthnot Banking Group in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.23. Arbuthnot Banking Group's value of 9.04% is 19.5% below this benchmark. While the company's 10-year median is 5.71 vs. the industry median of 11.23, Arbuthnot Banking Group 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 11.23, based on 1,523 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. Arbuthnot Banking Group's current Return-on-Tangible-Equity of 9.04% is 19.5% 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 Arbuthnot Banking Group and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.23 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arbuthnot Banking Group's current Return-on-Tangible-Equity is 9.04%, which is 58% above median its own 10-year median of 5.71. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arbuthnot Banking Group stock overvalued right now?
Based on GuruFocus' analysis, Arbuthnot Banking Group (LSE:ARBB) is currently considered Modestly Overvalued. The stock's GF Value™ is £7.52, compared to a current price of £8.35 — trading 11% above its estimated fair value. The current Return-on-Tangible-Equity is 9.04%, which is 58% above median its 10-year median of 5.71 and 19.5% below the Banks industry median of 11.23. Arbuthnot Banking Group's overall GF Score™ is 67/100 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 Arbuthnot Banking Group (LSE:ARBB), the current Return-on-Tangible-Equity is 9.04% 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 Arbuthnot Banking Group (LSE:ARBB) Overvalued in 2026?
Based on GuruFocus' analysis, Arbuthnot Banking Group stock appears to be overvalued.
The current stock price of £8.35 is trading 11% above its estimated GF Value™ of £7.52.
GuruFocus considers Arbuthnot Banking Group to be Modestly Overvalued.
Key valuation signals for LSE:ARBB:
Return-on-Tangible-Equity: 9.04% (58% above median its 10-year median of 5.71)
GF Value™: £7.52 vs. price of £8.35 (11% above fair value)
Industry Position: 19.5% below the Banks median (#1092 of 1523)
No single metric tells the full story. See the LSE:ARBB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arbuthnot Banking Group PLC is a United Kingdom-based company that provides banking and financial services. Its operating segments are Banking, Wealth Management, RAF, ACABL, AAG, All Other Divisions, and Group centre. It Group's revenues are derived from a combination of net interest income from lending, deposit-taking, and treasury activities, fees for services provided, and commission earned on the sale of financial products. Geographically, the company operates only in UK.
67GF Score
Get the complete analysis for LSE:ARBB
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