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AVVZF (Avanza Bank Holding AB) ROE % : 42.46% (As of Sep. 2024)


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What is Avanza Bank Holding AB ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Avanza Bank Holding AB's annualized net income for the quarter that ended in Sep. 2024 was $222.1 Mil. Avanza Bank Holding AB's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $523.2 Mil. Therefore, Avanza Bank Holding AB's annualized ROE % for the quarter that ended in Sep. 2024 was 42.46%.

The historical rank and industry rank for Avanza Bank Holding AB's ROE % or its related term are showing as below:

AVVZF' s ROE % Range Over the Past 10 Years
Min: 22.95   Med: 33.66   Max: 52.18
Current: 37.52

During the past 13 years, Avanza Bank Holding AB's highest ROE % was 52.18%. The lowest was 22.95%. And the median was 33.66%.

AVVZF's ROE % is ranked better than
98.18% of 1535 companies
in the Banks industry
Industry Median: 9.39 vs AVVZF: 37.52

Avanza Bank Holding AB ROE % Historical Data

The historical data trend for Avanza Bank Holding AB's ROE % 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.

Avanza Bank Holding AB ROE % Chart

Avanza Bank Holding AB Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 24.62 54.53 50.24 32.29 36.96

Avanza Bank Holding AB Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % 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 40.12 37.20 36.04 34.97 42.46

Competitive Comparison of Avanza Bank Holding AB's ROE %

For the Banks - Regional subindustry, Avanza Bank Holding AB's ROE %, along with its competitors' market caps and ROE % 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.


Avanza Bank Holding AB's ROE % Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Avanza Bank Holding AB's ROE % distribution charts can be found below:

* The bar in red indicates where Avanza Bank Holding AB's ROE % falls into.



Avanza Bank Holding AB ROE % Calculation

Avanza Bank Holding AB's annualized ROE % for the fiscal year that ended in Dec. 2023 is calculated as

ROE %=Net Income (A: Dec. 2023 )/( (Total Stockholders Equity (A: Dec. 2022 )+Total Stockholders Equity (A: Dec. 2023 ))/ count )
=193.223/( (477.067+568.652)/ 2 )
=193.223/522.8595
=36.96 %

Avanza Bank Holding AB's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=222.112/( (489.082+557.239)/ 2 )
=222.112/523.1605
=42.46 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Avanza Bank Holding AB  (OTCPK:AVVZF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=222.112/523.1605
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(222.112 / 380.096)*(380.096 / 31682.138)*(31682.138 / 523.1605)
=Net Margin %*Asset Turnover*Equity Multiplier
=58.44 %*0.012*60.5591
=ROA %*Equity Multiplier
=0.7 %*60.5591
=42.46 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=222.112/523.1605
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (222.112 / 257.308) * (257.308 / 380.096) * (380.096 / 31682.138) * (31682.138 / 523.1605)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8632 * 67.7 % * 0.012 * 60.5591
=42.46 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Avanza Bank Holding AB ROE % Related Terms

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Avanza Bank Holding AB Business Description

Traded in Other Exchanges
Address
Regeringsgatan 103, Box 1399, Stockholm, SWE, SE-111 93
Avanza Bank Holding AB is a digital bank that operates in Sweden and serves prdominantly private customers. The bank emphasizes its online strategy to drive lower costs for its deposit base based on the law of large numbers. Its cost base is centered on a high percentage of fixed costs, personnel costs. The bank does not charge its customers fixed fees or deposit fees. Income is generated when customers carry out transaction themselves, predominantly through brokerage fees from securities trading, net interest income from deposits and lending, fund commissions, foreign exchange income, and other income from suppliers of investment products. Over the long term, income growth depends on the bank's ability to grow savings capital.