Banco de Venezuela (CAR:BVL) ROE %: 75.87% (As of Dec. 2013)


What is Banco de Venezuela ROE %?

Banco de Venezuela CAR:BVL ROE % is 75.87% as of Dec. 2013.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Banco de Venezuela's annualized net income for the quarter that ended in Dec. 2013 was VES10,566 Mil. Banco de Venezuela's average Total Stockholders Equity over the quarter that ended in Dec. 2013 was VES13,926 Mil. Therefore, Banco de Venezuela's annualized ROE % for the quarter that ended in Dec. 2013 was 75.87%.

The historical rank and industry rank for Banco de Venezuela's ROE % or its related term are showing as below:

CAR:BVL's ROE % is not ranked *
in the Banks industry.
Industry Median: 10.22
* Ranked among companies with meaningful ROE % only.

Banco de Venezuela  (CAR:BVL) 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: Dec. 2013 )
=Net Income/Total Stockholders Equity
=10565.814/13925.988
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(10565.814 / 20186.862)*(20186.862 / 206199.7215)*(206199.7215 / 13925.988)
=Net Margin %*Asset Turnover*Equity Multiplier
=52.34 %*0.0979*14.8068
=ROA %*Equity Multiplier
=5.12 %*14.8068
=75.87 %

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: Dec. 2013 )
=Net Income/Total Stockholders Equity
=10565.814/13925.988
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (10565.814 / 10739.17) * (10739.17 / 20186.862) * (20186.862 / 206199.7215) * (206199.7215 / 13925.988)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.9839 * 53.2 % * 0.0979 * 14.8068
=75.87 %

Note: The net income data used here is two times the semi-annual (Dec. 2013) net income data. The Revenue data used here is two times the semi-annual (Dec. 2013) 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.

Banco de Venezuela ROE % Related Terms

Banco de Venezuela ROE % Historical Data

* Premium members only.

The historical data trend for Banco de Venezuela'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.

Banco de Venezuela ROE % Chart

Banco de Venezuela Annual Data
Trend Dec10 Dec11 Dec12 Dec13
ROE %
11.43 40.70 65.02 69.99

Banco de Venezuela Semi-Annual Data
Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13
ROE % Get a 7-Day Free Trial 52.24 60.72 68.14 58.60 75.87

CAR:BVL vs ARST: ROE % Comparison

For the Banks - Regional subindustry, Banco de Venezuela'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.

Banco de Venezuela ROE % vs Banks Industry

For the Banks industry and Financial Services sector, Banco de Venezuela's ROE % distribution charts can be found below:

* The bar in red indicates where Banco de Venezuela's ROE % falls into.


Banco de Venezuela ROE % Calculation

Banco de Venezuela's annualized ROE % for the fiscal year that ended in Dec. 2013 is calculated as

ROE %=Net Income (A: Dec. 2013 )/( (Total Stockholders Equity (A: Dec. 2012 )+Total Stockholders Equity (A: Dec. 2013 ))/ count )
=8663.58/( (9989.878+14766.085)/ 2 )
=8663.58/12377.9815
=69.99 %

Banco de Venezuela's annualized ROE % for the quarter that ended in Dec. 2013 is calculated as

ROE %=Net Income (Q: Dec. 2013 )/( (Total Stockholders Equity (Q: Jun. 2013 )+Total Stockholders Equity (Q: Dec. 2013 ))/ count )
=10565.814/( (13085.891+14766.085)/ 2 )
=10565.814/13925.988
=75.87 %

* 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 two times the semi-annual (Dec. 2013) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of 75.87% mean?
Banco de Venezuela (CAR:BVL) has a ROE % of 75.87% as of Dec. 2013. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Banco de Venezuela and its competitors.
Is Banco de Venezuela's ROE % too high?
Banco de Venezuela's current ROE % is 75.87%. The Banks industry median ROE % is 10.22. Banco de Venezuela's value of 75.87% is 642.4% above this industry median.
How does Banco de Venezuela's ROE % compare to ARST?
Banco de Venezuela's ROE % of 75.87% can be compared against companies in the Banks industry. The industry median ROE % is 10.22. Banco de Venezuela's value of 75.87% is 642.4% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Banks company?
The median ROE % among Banks companies is 10.22, based on 1,524 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Banco de Venezuela's current ROE % of 75.87% is 642.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Banco de Venezuela and its competitors. For the Banks industry, the median ROE % is 10.22 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Banco de Venezuela's current ROE % is 75.87%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco de Venezuela stock overvalued right now?
Banco de Venezuela (CAR:BVL) has a current ROE % of 75.87%. The current ROE % is 75.87% and 642.4% above the Banks industry median of 10.22. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Banco de Venezuela (CAR:BVL), the current ROE % is 75.87% as of Dec. 2013. 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.

Banco de Venezuela Business Description

Address Av University in Society Traposos, Torre Banco de Venezuela, Caracas, VEN
Banco de Venezuela SA is engaged in financial intermediation services consisting of raising funds for the purpose of granting credit or loans, and other financial operations and services. The bank maintains currency and savings and foreign currency account which includes global accounts, paid global accounts, digital key accounts among others.