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Pohjola Pankki Oyj (LTS:0ICL) Return-on-Tangible-Equity : 12.65% (As of Mar. 2016)


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What is Pohjola Pankki Oyj 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. Pohjola Pankki Oyj's annualized net income for the quarter that ended in Mar. 2016 was €356 Mil. Pohjola Pankki Oyj's average shareholder tangible equity for the quarter that ended in Mar. 2016 was €2,814 Mil. Therefore, Pohjola Pankki Oyj's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2016 was 12.65%.

The historical rank and industry rank for Pohjola Pankki Oyj's Return-on-Tangible-Equity or its related term are showing as below:

LTS:0ICL' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 7.86   Med: 17.84   Max: 33.7
Current: 17.68

During the past 12 years, Pohjola Pankki Oyj's highest Return-on-Tangible-Equity was 33.70%. The lowest was 7.86%. And the median was 17.84%.

LTS:0ICL's Return-on-Tangible-Equity is not ranked
in the Banks industry.
Industry Median: 10.45 vs LTS:0ICL: 17.68

Pohjola Pankki Oyj Return-on-Tangible-Equity Historical Data

The historical data trend for Pohjola Pankki Oyj'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.

Pohjola Pankki Oyj Return-on-Tangible-Equity Chart

Pohjola Pankki Oyj Annual Data
Trend Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.15 17.61 21.27 19.76 19.20

Pohjola Pankki Oyj Quarterly Data
Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16
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 20.01 24.80 19.83 13.17 12.65

Competitive Comparison of Pohjola Pankki Oyj's Return-on-Tangible-Equity

For the Banks - Regional subindustry, Pohjola Pankki Oyj'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.


Pohjola Pankki Oyj's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Pohjola Pankki Oyj's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Pohjola Pankki Oyj's Return-on-Tangible-Equity falls into.



Pohjola Pankki Oyj Return-on-Tangible-Equity Calculation

Pohjola Pankki Oyj's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2015 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2015 )  (A: Dec. 2014 )(A: Dec. 2015 )
=517/( (2530+2856 )/ 2 )
=517/2693
=19.20 %

Pohjola Pankki Oyj's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2016 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2016 )  (Q: Dec. 2015 )(Q: Mar. 2016 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2016 )  (Q: Dec. 2015 )(Q: Mar. 2016 )
=356/( (2856+2771)/ 2 )
=356/2813.5
=12.65 %

* 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. 2016) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Pohjola Pankki Oyj  (LTS:0ICL) 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.


Pohjola Pankki Oyj Return-on-Tangible-Equity Related Terms

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


Pohjola Pankki Oyj Business Description

Traded in Other Exchanges
N/A
Address
Pohjola Pankki Oyj, provides banking, non-life insurance and wealth management services. It serves businesses, institutions and private individuals and provides banking and insurance services to customers while supporting corporate customers' business.. The Company operates through the following three business segments: Banking, Asset Management, and Non-life Insurance. The banking segment provides corporate and institutional customers with solutions for their financing and financial management needs. Banking consists of the following divisions: Corporate Banking, Markets and Baltic Banking. Companies within Banking are the member banks, Helsinki OP Bank PLC, OP-Kotipankki Oyj, OP Mortgage Bank and OP Fund Management Company Ltd and certain smaller companies supporting banking services in its entirety. The Company's Banking and Asset Management segments are also included under OP-Pohjola Group's Banking. The operations of OP Bank Group Mutual Insurance Company's are also included under Banking as the company's business consists of credit insurance to OP-Pohjola Group's retail banks. The Wealth Management Segment comprises the following operations: OP Life Assurance Company Ltd and Aurum Investment Insurance Ltd engaged in the Company's life and pension insurance business, OP Fund Management Company Ltd engaged in mutual fund business, and Pohjola Group's Asset Management segment. The Non-life Insurance segment encompasses the operations of OP-Pohjola Group's non-life insurance companies, i.e. Pohjola Insurance Ltd, Eurooppalainen Insurance Company Ltd, A-Insurance Ltd, the Seesam companies operating in the Baltic countries, as well as the operations of service companies supporting non-life insurance. Non-life insurance products include non-life insurance policies sold to corporate and private customers.

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