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Ecobank Ghana (XGHA:EGH) Return-on-Tangible-Equity : 23.72% (As of Mar. 2025)


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What is Ecobank Ghana 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. Ecobank Ghana's annualized net income for the quarter that ended in Mar. 2025 was GHS1,318 Mil. Ecobank Ghana's average shareholder tangible equity for the quarter that ended in Mar. 2025 was GHS5,559 Mil. Therefore, Ecobank Ghana's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 was 23.72%.

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

XGHA:EGH' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -0.58   Med: 28.06   Max: 38.39
Current: 35.59

During the past 13 years, Ecobank Ghana's highest Return-on-Tangible-Equity was 38.39%. The lowest was -0.58%. And the median was 28.06%.

XGHA:EGH's Return-on-Tangible-Equity is ranked better than
97.34% of 1577 companies
in the Banks industry
Industry Median: 10.2 vs XGHA:EGH: 35.59

Ecobank Ghana Return-on-Tangible-Equity Historical Data

The historical data trend for Ecobank Ghana'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.

Ecobank Ghana Return-on-Tangible-Equity Chart

Ecobank Ghana Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 26.96 23.26 -0.58 19.96 37.57

Ecobank Ghana Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
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 33.07 31.46 29.45 58.05 23.72

Competitive Comparison of Ecobank Ghana's Return-on-Tangible-Equity

For the Banks - Regional subindustry, Ecobank Ghana'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.


Ecobank Ghana's Return-on-Tangible-Equity Distribution in the Banks Industry

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

* The bar in red indicates where Ecobank Ghana's Return-on-Tangible-Equity falls into.


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Ecobank Ghana Return-on-Tangible-Equity Calculation

Ecobank Ghana's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2024 )  (A: Dec. 2023 )(A: Dec. 2024 )
=1699.854/( (3655.219+5392.577 )/ 2 )
=1699.854/4523.898
=37.57 %

Ecobank Ghana's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2025 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2025 )  (Q: Dec. 2024 )(Q: Mar. 2025 )
=1318.396/( (5392.577+5725.899)/ 2 )
=1318.396/5559.238
=23.72 %

* 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. 2025) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Ecobank Ghana  (XGHA:EGH) 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.


Ecobank Ghana Return-on-Tangible-Equity Related Terms

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


Ecobank Ghana Business Description

Traded in Other Exchanges
N/A
Address
2 Morocco Lane, Off The Independence Avenue, Ministerial Area, Accra, GHA, 3261
Ecobank Ghana Ltd is a commercial banking corporation based in Ghana. Its service offering includes retail, corporate, and investment banking products. The bank functions through three operating segments namely Consumer banking focused on individuals who are grouped into a premier, advantage (personal banking), and classic & youth banking (direct banking); Commercial Banking focused on Business Banking and Medium Local Corporates such as SMEs, Medium Local corporates and Non-government public sector (schools, faith, NGOs & professional bodies); and Corporate banking specializes in serving the public sector, multinational institutions, financial institutions/international organizations and the Regional Corporate segment of the market.

Ecobank Ghana Headlines

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