GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Canadian Western Bank (FRA:C7W) » Definitions » ROE %

Canadian Western Bank (FRA:C7W) ROE % : 4.56% (As of Jul. 2024)


View and export this data going back to . Start your Free Trial

What is Canadian Western Bank ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Canadian Western Bank's annualized net income for the quarter that ended in Jul. 2024 was €130.6 Mil. Canadian Western Bank's average Total Stockholders Equity over the quarter that ended in Jul. 2024 was €2,862.6 Mil. Therefore, Canadian Western Bank's annualized ROE % for the quarter that ended in Jul. 2024 was 4.56%.

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

FRA:C7W' s ROE % Range Over the Past 10 Years
Min: 7.52   Med: 9.95   Max: 18.04
Current: 7.52

During the past 13 years, Canadian Western Bank's highest ROE % was 18.04%. The lowest was 7.52%. And the median was 9.95%.

FRA:C7W's ROE % is ranked worse than
61.26% of 1536 companies
in the Banks industry
Industry Median: 9.395 vs FRA:C7W: 7.52

Canadian Western Bank ROE % Historical Data

The historical data trend for Canadian Western 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.

* Premium members only.

Canadian Western Bank ROE % Chart

Canadian Western Bank Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.49 8.36 10.78 9.57 8.73

Canadian Western Bank Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
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 9.08 8.45 9.14 8.02 4.56

Competitive Comparison of Canadian Western Bank's ROE %

For the Banks - Regional subindustry, Canadian Western 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.


Canadian Western Bank's ROE % Distribution in the Banks Industry

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

* The bar in red indicates where Canadian Western Bank's ROE % falls into.



Canadian Western Bank ROE % Calculation

Canadian Western Bank's annualized ROE % for the fiscal year that ended in Oct. 2023 is calculated as

ROE %=Net Income (A: Oct. 2023 )/( (Total Stockholders Equity (A: Oct. 2022 )+Total Stockholders Equity (A: Oct. 2023 ))/ count )
=242.171/( (2767.894+2780.961)/ 2 )
=242.171/2774.4275
=8.73 %

Canadian Western Bank's annualized ROE % for the quarter that ended in Jul. 2024 is calculated as

ROE %=Net Income (Q: Jul. 2024 )/( (Total Stockholders Equity (Q: Apr. 2024 )+Total Stockholders Equity (Q: Jul. 2024 ))/ count )
=130.624/( (2834.911+2890.334)/ 2 )
=130.624/2862.6225
=4.56 %

* 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 (Jul. 2024) net income data. ROE % is displayed in the 30-year financial page.


Canadian Western Bank  (FRA:C7W) 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: Jul. 2024 )
=Net Income/Total Stockholders Equity
=130.624/2862.6225
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(130.624 / 802.648)*(802.648 / 28570.585)*(28570.585 / 2862.6225)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.27 %*0.0281*9.9806
=ROA %*Equity Multiplier
=0.46 %*9.9806
=4.56 %

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: Jul. 2024 )
=Net Income/Total Stockholders Equity
=130.624/2862.6225
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (130.624 / 176.956) * (176.956 / 802.648) * (802.648 / 28570.585) * (28570.585 / 2862.6225)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.7382 * 22.05 % * 0.0281 * 9.9806
=4.56 %

Note: The net income data used here is four times the quarterly (Jul. 2024) net income data. The Revenue data used here is four times the quarterly (Jul. 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.


Canadian Western Bank ROE % Related Terms

Thank you for viewing the detailed overview of Canadian Western Bank's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Canadian Western Bank Business Description

Address
10303 Jasper Avenue, Suite 3000, Edmonton, AB, CAN, T5J 3X6
Canadian Western Bank is a diversified financial service organization providing banking, trust, and wealth management services. The group operates through a number of subsidiaries providing different areas of financial services. Canadian Western Bank offers business banking services including general commercial banking, equipment financing and leasing, real estate financing, and other services for small- and medium-sized companies, as well as personal banking services including chequing and savings accounts, loans, mortgages, and investment products. Canadian Western Trust is engaged in retirement, trustee, and custodial solutions for financial advisors, corporations, and individuals. The company receives maximum revenue from interest income.

Canadian Western Bank Headlines

No Headlines