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Aareal Bank AG (LTS:0MG0) Return-on-Tangible-Equity : 11.29% (As of Mar. 2024)


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What is Aareal Bank AG Return-on-Tangible-Equity?

Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Aareal Bank AG's annualized net income for the quarter that ended in Mar. 2024 was €284 Mil. Aareal Bank AG's average shareholder tangible equity for the quarter that ended in Mar. 2024 was €2,517 Mil. Therefore, Aareal Bank AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 was 11.29%.

The historical rank and industry rank for Aareal Bank AG's Return-on-Tangible-Equity or its related term are showing as below:

LTS:0MG0' s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -2.75   Med: 6.7   Max: 14.13
Current: 3.5

During the past 13 years, Aareal Bank AG's highest Return-on-Tangible-Equity was 14.13%. The lowest was -2.75%. And the median was 6.70%.

LTS:0MG0's Return-on-Tangible-Equity is not ranked
in the Banks industry.
Industry Median: 10.69 vs LTS:0MG0: 3.50

Aareal Bank AG Return-on-Tangible-Equity Historical Data

The historical data trend for Aareal Bank AG's Return-on-Tangible-Equity 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.

Aareal Bank AG Return-on-Tangible-Equity Chart

Aareal Bank AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Return-on-Tangible-Equity
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.91 -2.75 2.53 5.86 2.79

Aareal Bank AG Quarterly Data
Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24
Return-on-Tangible-Equity 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 7.74 2.42 7.53 -7.13 11.29

Competitive Comparison of Aareal Bank AG's Return-on-Tangible-Equity

For the Banks - Regional subindustry, Aareal Bank AG's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.


Aareal Bank AG's Return-on-Tangible-Equity Distribution in the Banks Industry

For the Banks industry and Financial Services sector, Aareal Bank AG's Return-on-Tangible-Equity distribution charts can be found below:

* The bar in red indicates where Aareal Bank AG's Return-on-Tangible-Equity falls into.



Aareal Bank AG Return-on-Tangible-Equity Calculation

Aareal Bank AG's annualized Return-on-Tangible-Equity for the fiscal year that ended in Dec. 2023 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets )/ count )
(A: Dec. 2023 )  (A: Dec. 2022 )(A: Dec. 2023 )
=71/( (2623+2475 )/ 2 )
=71/2549
=2.79 %

Aareal Bank AG's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2024 is calculated as

Return-on-Tangible-Equity=Net Income/( (Total Tangible Equity+Total Tangible Equity)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=Net Income/( (Total Stockholders Equity - Intangible Assets+Total Stockholders Equity - Intangible Assets)/ count )
(Q: Mar. 2024 )  (Q: Dec. 2023 )(Q: Mar. 2024 )
=284/( (2475+2558)/ 2 )
=284/2516.5
=11.29 %

* 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 Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Mar. 2024) net income data. Return-on-Tangible-Equity is displayed in the 10-year financial page.


Aareal Bank AG  (LTS:0MG0) Return-on-Tangible-Equity Explanation

Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.


Be Aware

Net Income is used.

Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity 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 Return-on-Tangible-Equitys can be extremely high.


Aareal Bank AG Return-on-Tangible-Equity Related Terms

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Aareal Bank AG (LTS:0MG0) Business Description

Traded in Other Exchanges
Address
Paulinenstrasse 15, Wiesbaden, HE, DEU, 65189
Aareal Bank AG is the parent company of the Aareal Bank Group, an international purveyor of financing services that specializes in commercial property financing. The group's companies are organized into three business segments: structured property financing and Banking and Digital solutions and Aareon. Under its structured property financing segment, the group serves its customers' projects in Europe, North America, and Asia. The bank's strategic focus emphasizes local market expertise combined with sector-specific knowledge. Its commercial property financing particularly includes office buildings, hotels, retail, logistics, and residential properties. Most of the bank's new financing opportunities take place in Western Europe.

Aareal Bank AG (LTS:0MG0) Headlines

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