Arion banki hfOISE:ARION 74 Return-on-Tangible-Equity is 14.39% as of Mar. 2026, which is 18% above its 10-year median of 12.21. GuruFocus rates OISE:ARION with a GF Score™ of 74/100 and a GF Value™ of kr202.64 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,523 Banks companies, Arion banki hf ranks better than 78.59% 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. Arion banki hf's annualized net income for the quarter that ended in Mar. 2026 was kr29,272 Mil. Arion banki hf's average shareholder tangible equity for the quarter that ended in Mar. 2026 was kr203,352 Mil. Therefore, Arion banki hf's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 14.39%.
The historical rank and industry rank for Arion banki hf's Return-on-Tangible-Equity or its related term are showing as below:
OISE:ARION'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.58 Med: 12.21 Max: 15.92
Current: 15.92
During the past 12 years, Arion banki hf's highest Return-on-Tangible-Equity was 15.92%. The lowest was 0.58%. And the median was 12.21%.
OISE:ARION's Return-on-Tangible-Equity is ranked better than 78.59% of 1523
companies
in the Banks industry
Industry Median: 11.2
vs OISE:ARION: 15.92
Arion banki hf (OISE:ARION) 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.
Arion banki hf Return-on-Tangible-Equity Related Terms
Arion banki hf Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arion banki hf'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.
OISE:ARION vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Arion banki hf'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.
Arion banki hf Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Arion banki hf's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arion banki hf'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 14.39% mean?
Arion banki hf (OISE:ARION) has a Return-on-Tangible-Equity of 14.39% 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 Arion banki hf and its competitors. This is 18% above median its historical median of 12.21. Over the past decade, Arion banki hf's Return-on-Tangible-Equity has ranged from 0.58 to 15.92. According to the industry distribution chart, Arion banki hf ranks #326 out of 1523 companies in the Banks industry, placing it in the top 21.4%.
Is Arion banki hf's Return-on-Tangible-Equity too high?
Arion banki hf's current Return-on-Tangible-Equity of 14.39% is 18% above median its 10-year median of 12.21. Over the past 10 years, this metric has ranged from a low of 0.58 to a high of 15.92. The Banks industry median Return-on-Tangible-Equity is 11.20. Arion banki hf's value of 14.39% is 28.5% above this industry median. Based on the distribution chart, Arion banki hf ranks #326 out of 1523 companies in the Banks industry, which is in the top quartile — a strong position relative to peers. Overall, Arion banki hf has a GF Score™ of 74/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arion banki hf's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Arion banki hf ranks #326 out of 1523 companies for Return-on-Tangible-Equity. This places Arion banki hf in the top 21% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 11.20. Arion banki hf's value of 14.39% is 28.5% above this benchmark. Historically, Arion banki hf's own Return-on-Tangible-Equity has ranged from 0.58 to 15.92 over the past decade. While the company's 10-year median is 12.21 vs. the industry median of 11.20, Arion banki hf 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 11.20, 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. Arion banki hf's current Return-on-Tangible-Equity of 14.39% is 28.5% 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 Arion banki hf 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. Arion banki hf's current Return-on-Tangible-Equity is 14.39%, which is 18% above median its own 10-year median of 12.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arion banki hf stock overvalued right now?
Based on GuruFocus' analysis, Arion banki hf (OISE:ARION) is currently considered Fairly Valued. The stock's GF Value™ is kr202.64, compared to a current price of kr190.00 — trading 6.2% below its estimated fair value. The current Return-on-Tangible-Equity is 14.39%, which is 18% above median its 10-year median of 12.21 and 28.5% above the Banks industry median of 11.20. Arion banki hf's overall GF Score™ is 74/100 with 3 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 Arion banki hf (OISE:ARION), the current Return-on-Tangible-Equity is 14.39% 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 Arion banki hf (OISE:ARION) Overvalued in 2026?
Based on GuruFocus' analysis, Arion banki hf stock appears to be undervalued.
The current stock price of kr190.00 is trading 6.2% below its estimated GF Value™ of kr202.64.
GuruFocus considers Arion banki hf to be Fairly Valued.
Key valuation signals for OISE:ARION:
Return-on-Tangible-Equity: 14.39% (18% above median its 10-year median of 12.21)
GF Value™: kr202.64 vs. price of kr190.00 (6.2% below fair value)
Industry Position: 28.5% above the Banks median (#326 of 1523)
No single metric tells the full story. See the OISE:ARION stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arion banki hf is a universal relationship bank operating in the Icelandic financial market. Its operating segments are Markets & Stefnir, Corporate & Investment Banking, Retail Banking, Treasury, Other subsidiaries, and Supporting units. The Corporate & Investment Banking segment of the company generates the majority of the revenue and is engaged in providing comprehensive financial services to companies and investors both in Iceland and internationally.
74GF Score
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