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NPF Microfinance Bank (NSA:NPFMB) Return-on-Tangible-Equity : 11.45% (As of Dec. 2020)


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What is NPF Microfinance Bank 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. NPF Microfinance Bank's annualized net income for the quarter that ended in Dec. 2020 was ₦614 Mil. NPF Microfinance Bank's average shareholder tangible equity for the quarter that ended in Dec. 2020 was ₦5,364 Mil. Therefore, NPF Microfinance Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2020 was 11.45%.

The historical rank and industry rank for NPF Microfinance Bank's Return-on-Tangible-Equity or its related term are showing as below:

NSA:NPFMB's Return-on-Tangible-Equity is not ranked *
in the Banks industry.
Industry Median: 10.69
* Ranked among companies with meaningful Return-on-Tangible-Equity only.

NPF Microfinance Bank Return-on-Tangible-Equity Historical Data

The historical data trend for NPF Microfinance 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.

* Premium members only.

NPF Microfinance Bank Return-on-Tangible-Equity Chart

NPF Microfinance Bank Annual Data
Trend Dec17 Dec18 Dec19 Dec20
Return-on-Tangible-Equity
13.30 4.17 16.04 11.45

NPF Microfinance Bank Semi-Annual Data
Dec17 Dec18 Dec19 Dec20
Return-on-Tangible-Equity 13.30 4.17 16.04 11.45

Competitive Comparison of NPF Microfinance Bank's Return-on-Tangible-Equity

For the Banks - Regional subindustry, NPF Microfinance 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.


NPF Microfinance Bank's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, NPF Microfinance Bank's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where NPF Microfinance Bank's Return-on-Tangible-Equity falls into.



NPF Microfinance Bank Return-on-Tangible-Equity Calculation

NPF Microfinance Bank's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2020 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2020 )  (A: Dec. 2019 )(A: Dec. 2020 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2020 )  (A: Dec. 2019 )(A: Dec. 2020 )
=614.417/( (5294.033+5433.891 )/ 2 )
=614.417/5363.962
=11.45 %

NPF Microfinance Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2020 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Dec. 2020 )  (Q: Dec. 2019 )(Q: Dec. 2020 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Dec. 2020 )  (Q: Dec. 2019 )(Q: Dec. 2020 )
=614.417/( (5294.033+5433.891)/ 2 )
=614.417/5363.962
=11.45 %

* 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 one times the annual (Dec. 2020) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


NPF Microfinance Bank  (NSA:NPFMB) 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.


NPF Microfinance Bank Return-on-Tangible-Equity Related Terms

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


NPF Microfinance Bank (NSA:NPFMB) Business Description

Traded in Other Exchanges
N/A
Address
1, Ikoyi Road, Obalende, Aliyu Aa House, Lagos, NGA
NPF Microfinance Bank PLC provides banking products and services to consumers including retail banking, loans and advances, money market activities and financial advisory services.

NPF Microfinance Bank (NSA:NPFMB) Headlines

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