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Arab Islamic BankXPAE:AIB +2.26%61 Return-on-Tangible-Equity is 9.08% as of Jun. 2026, which is 33% above its 10-year median of 6.85. GuruFocus rates XPAE:AIB with a GF Score™ of 61/100 and a GF Value™ of $1.44 (Fairly Valued). The stock has 4 warning signs investors should review. Among 1,519 Banks companies, Arab Islamic Bank ranks worse than 85.19% 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. Arab Islamic Bank's annualized net income for the quarter that ended in Jun. 2026 was $13.78 Mil. Arab Islamic Bank's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $151.71 Mil. Therefore, Arab Islamic Bank's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 9.08%.
The historical rank and industry rank for Arab Islamic Bank's Return-on-Tangible-Equity or its related term are showing as below:
XPAE:AIB'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 0.8 Med: 6.85 Max: 9.79
Current: 4.59
During the past 13 years, Arab Islamic Bank's highest Return-on-Tangible-Equity was 9.79%. The lowest was 0.80%. And the median was 6.85%.
XPAE:AIB's Return-on-Tangible-Equity is ranked worse than 85.19% of 1519
companies
in the Banks industry
Industry Median: 11.48
vs XPAE:AIB: 4.59
Arab Islamic Bank (XPAE:AIB) 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.
Arab Islamic Bank Return-on-Tangible-Equity Related Terms
Arab Islamic Bank Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Arab Islamic 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.
XPAE:AIB vs USB, PNC: Return-on-Tangible-Equity Comparison
For the Banks - Regional subindustry, Arab Islamic 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.
Arab Islamic Bank Return-on-Tangible-Equity vs Banks Industry
For the Banks industry and Financial Services sector, Arab Islamic Bank's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Arab Islamic Bank'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 (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 9.08% mean?
Arab Islamic Bank (XPAE:AIB) has a Return-on-Tangible-Equity of 9.08% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Arab Islamic Bank and its competitors. This is 33% above median its historical median of 6.85. Over the past decade, Arab Islamic Bank's Return-on-Tangible-Equity has ranged from 0.80 to 9.79. According to the industry distribution chart, Arab Islamic Bank ranks #1294 out of 1519 companies in the Banks industry, placing it in the top 85.2%.
Is Arab Islamic Bank's Return-on-Tangible-Equity too high?
Arab Islamic Bank's current Return-on-Tangible-Equity of 9.08% is 33% above median its 10-year median of 6.85. Over the past 10 years, this metric has ranged from a low of 0.80 to a high of 9.79. The Banks industry median Return-on-Tangible-Equity is 11.48. Arab Islamic Bank's value of 9.08% is 20.9% below this industry median. Based on the distribution chart, Arab Islamic Bank ranks #1294 out of 1519 companies in the Banks industry, which is in the bottom quartile relative to peers. Overall, Arab Islamic Bank has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Arab Islamic Bank's Return-on-Tangible-Equity compare to USB and PNC?
According to the Banks industry distribution chart, Arab Islamic Bank ranks #1294 out of 1519 companies for Return-on-Tangible-Equity. This places Arab Islamic Bank in the lower half of its industry. The industry median Return-on-Tangible-Equity is 11.48. Arab Islamic Bank's value of 9.08% is 20.9% below this benchmark. Historically, Arab Islamic Bank's own Return-on-Tangible-Equity has ranged from 0.80 to 9.79 over the past decade. While the company's 10-year median is 6.85 vs. the industry median of 11.48, Arab Islamic Bank has consistently been below 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 11.48, based on 1,519 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. Arab Islamic Bank's current Return-on-Tangible-Equity of 9.08% is 20.9% below 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 Arab Islamic Bank and its competitors. For the Banks industry, the median Return-on-Tangible-Equity is 11.48 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Arab Islamic Bank's current Return-on-Tangible-Equity is 9.08%, which is 33% above median its own 10-year median of 6.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Arab Islamic Bank stock overvalued right now?
Based on GuruFocus' analysis, Arab Islamic Bank (XPAE:AIB) is currently considered Fairly Valued. The stock's GF Value™ is $1.44, compared to a current price of $1.35 — trading 6.2% below its estimated fair value. The current Return-on-Tangible-Equity is 9.08%, which is 33% above median its 10-year median of 6.85 and 20.9% below the Banks industry median of 11.48. Arab Islamic Bank's overall GF Score™ is 61/100 with 4 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 Arab Islamic Bank (XPAE:AIB), the current Return-on-Tangible-Equity is 9.08% as of Jun. 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 Arab Islamic Bank (XPAE:AIB) Overvalued in 2026?
Based on GuruFocus' analysis, Arab Islamic Bank stock appears to be undervalued.
The current stock price of $1.35 is trading 6.2% below its estimated GF Value™ of $1.44.
GuruFocus considers Arab Islamic Bank to be Fairly Valued.
Key valuation signals for XPAE:AIB:
Return-on-Tangible-Equity: 9.08% (33% above median its 10-year median of 6.85)
GF Value™: $1.44 vs. price of $1.35 (6.2% below fair value)
Industry Position: 20.9% below the Banks median (#1294 of 1519)
No single metric tells the full story. See the XPAE:AIB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Arab Islamic Bank is an Islamic banking firm in Palestine that provides banking and investment services according to Islamic Shari'a. The bank operates through three segments including Retail banking, Corporate banking, and Treasury. Its Retail Banking segment is engaged in handling individual customers' deposits and providing them with Islamic financing and other services. Its Corporate banking segment handles Islamic financing, deposits and current accounts for corporate and institutional customers. While its Treasury segment provides trading and treasury services and also manages Bank's funds and investments. The bank operates geographically in Palestine, Jordan, Israel and other countries, and earns majority of its revenue from Palestine.
61GF Score
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