ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Signature Bank's annualized net income for the quarter that ended in Dec. 2022 was $1,203 Mil. Signature Bank's average Total Stockholders Equity over the quarter that ended in Dec. 2022 was $7,852 Mil. Therefore, Signature Bank's annualized ROE % for the quarter that ended in Dec. 2022 was 15.33%.
The historical rank and industry rank for Signature Bank's ROE % or its related term are showing as below:
SBNY's ROE % is not ranked *
in the Banks industry.
Industry Median: 10.22 * Ranked among companies with meaningful ROE % only.
Signature Bank (OTCPK:SBNY) 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 four times the quarterly (Dec. 2022) net income data. The Revenue data used here is four times the quarterly (Dec. 2022) 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.
Signature Bank ROE % Related Terms
Signature Bank ROE % Historical Data
* Premium members only.
The historical data trend for Signature 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.
For the Banks - Regional subindustry, Signature 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.
Signature Bank ROE % vs Banks Industry
For the Banks industry and Financial Services sector, Signature Bank's ROE % distribution charts can be found below:
* The bar in red indicates where Signature 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 four times the quarterly (Dec. 2022) net income data.
ROE % is displayed in the 30-year financial page.
Signature Bank (SBNY) has a ROE % of 15.33% as of Dec. 2022. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Signature Bank and its competitors.
Is Signature Bank's ROE % too high?
Signature Bank's current ROE % is 15.33%. The Banks industry median ROE % is 10.22. Signature Bank's value of 15.33% is 50% above this industry median. Overall, Signature Bank has a GF Score™ of 12/100, reflecting its overall financial health beyond just this single metric.
How does Signature Bank's ROE % compare to FSWA and FSTF?
Signature Bank's ROE % of 15.33% can be compared against companies in the Banks industry. The industry median ROE % is 10.22. Signature Bank's value of 15.33% is 50% 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. Signature Bank's current ROE % of 15.33% is 50% 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 Signature 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. Signature Bank's current ROE % is 15.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Signature Bank stock overvalued right now?
Signature Bank (SBNY) has a current ROE % of 15.33%. The current ROE % is 15.33% and 50% above the Banks industry median of 10.22. Signature Bank's overall GF Score™ is 12/100. 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 Signature Bank (SBNY), the current ROE % is 15.33% as of Dec. 2022. 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.
Signature Bank is a New York-based commercial bank. It is engaged in offering a wide range of business and personal banking products and services. The operating segments of the company are Commercial banking and Specialty finance. The company operates in New York and derives a majority of its revenue from the Commercial banking segment, which consists principally of commercial real estate lending, fund banking, venture banking, commercial and industrial lending, and commercial deposit gathering activities. Specialty Finance consists of financing and leasing products, including equipment, transportation, taxi medallion, commercial marine, municipal, and national franchise financing and leasing.
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