Islandsbanki hfOISE:ISB -0.43%70 Return-on-Tangible-Equity is 13.79% as of Mar. 2026, which is 27% above its 10-year median of 10.86. GuruFocus rates OISE:ISB with a GF Score™ of 70/100 and a GF Value™ of kr145.43 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,521 Banks companies, Islandsbanki hf ranks better than 58.05% 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. Islandsbanki hf's annualized net income for the quarter that ended in Mar. 2026 was kr29,824 Mil. Islandsbanki hf's average shareholder tangible equity for the quarter that ended in Mar. 2026 was kr216,323 Mil. Therefore, Islandsbanki hf's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 13.79%.
The historical rank and industry rank for Islandsbanki hf's Return-on-Tangible-Equity or its related term are showing as below:
OISE:ISB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 3.98 Med: 10.86 Max: 12.56
Current: 12.56
During the past 9 years, Islandsbanki hf's highest Return-on-Tangible-Equity was 12.56%. The lowest was 3.98%. And the median was 10.86%.
OISE:ISB's Return-on-Tangible-Equity is ranked better than 58.05% of 1521
companies
in the Banks industry
Industry Median: 11.19
vs OISE:ISB: 12.56
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.
Islandsbanki hf Return-on-Tangible-Equity Related Terms
Islandsbanki hf Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Islandsbanki 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:ISB vs PNC, USB: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Islandsbanki 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.
Islandsbanki hf Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Islandsbanki hf's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Islandsbanki 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 13.79% mean?
Islandsbanki hf (OISE:ISB) has a Return-on-Tangible-Equity of 13.79% 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 Islandsbanki hf and its competitors. This is 27% above median its historical median of 10.86. Over the past decade, Islandsbanki hf's Return-on-Tangible-Equity has ranged from 3.98 to 12.56. According to the industry distribution chart, Islandsbanki hf ranks #638 out of 1521 companies in the Banks industry, placing it in the top 41.9%.
Is Islandsbanki hf's Return-on-Tangible-Equity too high?
Islandsbanki hf's current Return-on-Tangible-Equity of 13.79% is 27% above median its 10-year median of 10.86. Over the past 10 years, this metric has ranged from a low of 3.98 to a high of 12.56. The Banks industry median Return-on-Tangible-Equity is 11.19. Islandsbanki hf's value of 13.79% is 23.2% above this industry median. Based on the distribution chart, Islandsbanki hf ranks #638 out of 1521 companies in the Banks industry, which is above the industry midpoint. Overall, Islandsbanki hf has a GF Score™ of 70/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Islandsbanki hf's Return-on-Tangible-Equity compare to PNC and USB?
According to the Banks industry distribution chart, Islandsbanki hf ranks #638 out of 1521 companies for Return-on-Tangible-Equity. This puts Islandsbanki hf in the upper half of its industry. The industry median Return-on-Tangible-Equity is 11.19. Islandsbanki hf's value of 13.79% is 23.2% above this benchmark. Historically, Islandsbanki hf's own Return-on-Tangible-Equity has ranged from 3.98 to 12.56 over the past decade. While the company's 10-year median is 10.86 vs. the industry median of 11.19, Islandsbanki 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 11.19, based on 1,521 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. Islandsbanki hf's current Return-on-Tangible-Equity of 13.79% is 23.2% 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 Islandsbanki hf 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. Islandsbanki hf's current Return-on-Tangible-Equity is 13.79%, which is 27% above median its own 10-year median of 10.86. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Islandsbanki hf stock overvalued right now?
Based on GuruFocus' analysis, Islandsbanki hf (OISE:ISB) is currently considered Fairly Valued. The stock's GF Value™ is kr145.43, compared to a current price of kr138.40 — trading 4.8% below its estimated fair value. The current Return-on-Tangible-Equity is 13.79%, which is 27% above median its 10-year median of 10.86 and 23.2% above the Banks industry median of 11.19. Islandsbanki hf's overall GF Score™ is 70/100 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 Islandsbanki hf (OISE:ISB), the current Return-on-Tangible-Equity is 13.79% 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 Islandsbanki hf (OISE:ISB) Overvalued in 2026?
Based on GuruFocus' analysis, Islandsbanki hf stock appears to be undervalued.
The current stock price of kr138.40 is trading 4.8% below its estimated GF Value™ of kr145.43.
GuruFocus considers Islandsbanki hf to be Fairly Valued.
Key valuation signals for OISE:ISB:
Return-on-Tangible-Equity: 13.79% (27% above median its 10-year median of 10.86)
GF Value™: kr145.43 vs. price of kr138.40 (4.8% below fair value)
Industry Position: 23.2% above the Banks median (#638 of 1521)
No single metric tells the full story. See the OISE:ISB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Islandsbanki hf is a customer-centric universal bank. The company's segments include Personal Banking; Business Banking; Corporate and Investment Banking; Treasury and Proprietary Trading and Cost centres. It generates maximum revenue from the Business Banking segment. Business Banking provides small and medium-sized enterprises (SMEs) with comprehensive financial services, including Ergo, the Bank's asset financing service.
70GF Score
Get the complete analysis for OISE:ISB
Return-on-Tangible-Equity is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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