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NMBZ Holding (LSE:NMB) ROE % : 34.97% (As of Dec. 2023)


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What is NMBZ Holding ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NMBZ Holding's annualized net income for the quarter that ended in Dec. 2023 was $501.16 Mil. NMBZ Holding's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $1,432.96 Mil. Therefore, NMBZ Holding's annualized ROE % for the quarter that ended in Dec. 2023 was 34.97%.

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

LSE:NMB' s ROE % Range Over the Past 10 Years
Min: 1.62   Med: 28.59   Max: 74.85
Current: 73.32

During the past 9 years, NMBZ Holding's highest ROE % was 74.85%. The lowest was 1.62%. And the median was 28.59%.

LSE:NMB's ROE % is ranked better than
99.45% of 1461 companies
in the Banks industry
Industry Median: 9.64 vs LSE:NMB: 73.32

NMBZ Holding ROE % Historical Data

The historical data trend for NMBZ Holding'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.

NMBZ Holding ROE % Chart

NMBZ Holding Annual Data
Trend Dec09 Dec11 Dec12 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROE %
Get a 7-Day Free Trial Premium Member Only 21.39 28.58 34.97 49.03 74.85

NMBZ Holding Semi-Annual Data
Dec09 Jun11 Dec11 Jun12 Dec12 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
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 65.26 65.55 87.23 130.75 34.97

Competitive Comparison of NMBZ Holding's ROE %

For the Banks - Regional subindustry, NMBZ Holding'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.


NMBZ Holding's ROE % Distribution in the Banks Industry

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

* The bar in red indicates where NMBZ Holding's ROE % falls into.



NMBZ Holding ROE % Calculation

NMBZ Holding'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 )
=855.996/( (636.681+1650.435)/ 2 )
=855.996/1143.558
=74.85 %

NMBZ Holding's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=501.156/( (1215.49+1650.435)/ 2 )
=501.156/1432.9625
=34.97 %

* 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. 2023) net income data. ROE % is displayed in the 30-year financial page.


NMBZ Holding  (LSE:NMB) 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. 2023 )
=Net Income/Total Stockholders Equity
=501.156/1432.9625
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(501.156 / 2049.612)*(2049.612 / 3939.2325)*(3939.2325 / 1432.9625)
=Net Margin %*Asset Turnover*Equity Multiplier
=24.45 %*0.5203*2.749
=ROA %*Equity Multiplier
=12.72 %*2.749
=34.97 %

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. 2023 )
=Net Income/Total Stockholders Equity
=501.156/1432.9625
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (501.156 / 607.156) * (607.156 / 2049.612) * (2049.612 / 3939.2325) * (3939.2325 / 1432.9625)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.8254 * 29.62 % * 0.5203 * 2.749
=34.97 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 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.


NMBZ Holding ROE % Related Terms

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NMBZ Holding (LSE:NMB) Business Description

Traded in Other Exchanges
Address
19207 Liberation Legacy Way, PO Box 2564, Borrowdale, Harare, ZWE
NMBZ Holding Ltd is an investment holding company. Through its subsidiary, it operates in five segments: Retail Banking, Corporate Banking, Digital Banking, Treasury, International Banking, and others. Its Retail Banking segment includes individual customer's deposits and consumer overdrafts, credit card facilities, and funds transfer facilities. The Digital Banking segment handles the Bank's Digital Banking products, including Card and POS Services. Its Corporate Banking segment includes loans and other credit facilities and deposit and current accounts for corporate and institutional customers. The Treasury segment includes money market investment, securities trading, accepting and discounting of instruments, and foreign currency trading.

NMBZ Holding (LSE:NMB) Headlines

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