ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Optima bank's annualized net income for the quarter that ended in Jun. 2023 was €88.2 Mil. Optima bank's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was €275.7 Mil. Therefore, Optima bank's annualized ROE % for the quarter that ended in Jun. 2023 was 31.99%.
The historical rank and industry rank for Optima bank's ROE % or its related term are showing as below:
FRA:C59's ROE % is not ranked *
in the Banks industry.
Industry Median: 10.22 * Ranked among companies with meaningful ROE % only.
Optima bank (FRA:C59) 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:
Note:
The net income data used here is two times the semi-annual (Jun. 2023) net income data. The Revenue data used here is two times the semi-annual (Jun. 2023) 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.
Optima bank ROE % Related Terms
Optima bank ROE % Historical Data
* Premium members only.
The historical data trend for Optima bank'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.
Optima bank ROE % Chart
Optima bank Annual Data
Trend
Dec20
Dec21
Dec22
ROE %
-3.32
6.62
20.73
Optima bank Semi-Annual Data
Dec20
Dec21
Jun22
Dec22
Jun23
ROE %
0.00
0.00
21.46
20.29
31.99
FRA:C59 vs : ROE % Comparison
For the Banks - Regional subindustry, Optima bank'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.
Optima bank ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Optima bank's ROE % distribution charts can be found below:
* The bar in red indicates where Optima bank's ROE % 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 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 (Jun. 2023) net income data.
ROE % is displayed in the 30-year financial page.
Optima bank (FRA:C59) has a ROE % of 31.99% as of Jun. 2023. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Optima bank and its competitors.
Is Optima bank's ROE % too high?
Optima bank's current ROE % is 31.99%. The Banks industry median ROE % is 10.22. Optima bank's value of 31.99% is 213% above this industry median. Overall, Optima bank has a GF Score™ of 20/100, reflecting its overall financial health beyond just this single metric.
How does Optima bank's ROE % compare to ?
Optima bank's ROE % of 31.99% can be compared against companies in the Banks industry. The industry median ROE % is 10.22. Optima bank's value of 31.99% is 213% 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. Optima bank's current ROE % of 31.99% is 213% 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 Optima bank 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. Optima bank's current ROE % is 31.99%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Optima bank stock overvalued right now?
Optima bank (FRA:C59) has a current ROE % of 31.99%. The current ROE % is 31.99% and 213% above the Banks industry median of 10.22. Optima bank's overall GF Score™ is 20/100. 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 Optima bank (FRA:C59), the current ROE % is 31.99% as of Jun. 2023. 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.
Optima bank SA is a banking and financial services providing institution which caters to the needs of customers both retail and businesses, products and services. It also provides a wide range of banking and brokerage services as well as investment banking services covering the broadest sectors such as Private Banking or Retail Banking, Corporate Banking, Other Services, Capital Management Services, and Business Receivables Agency.
20GF Score
Get the complete analysis for FRA:C59
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:C59 has been successfully added to your 