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NBS Bank (MSW:NBS) ROE % : 59.37% (As of Jun. 2023)


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What is NBS Bank ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. NBS Bank's annualized net income for the quarter that ended in Jun. 2023 was MWK24,314 Mil. NBS Bank's average Total Stockholders Equity over the quarter that ended in Jun. 2023 was MWK40,951 Mil. Therefore, NBS Bank's annualized ROE % for the quarter that ended in Jun. 2023 was 59.37%.

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

MSW:NBS' s ROE % Range Over the Past 10 Years
Min: -121   Med: 25.65   Max: 63.42
Current: 63.42

During the past 8 years, NBS Bank's highest ROE % was 63.42%. The lowest was -121.00%. And the median was 25.65%.

MSW:NBS's ROE % is ranked better than
99.18% of 1463 companies
in the Banks industry
Industry Median: 9.64 vs MSW:NBS: 63.42

NBS Bank ROE % Historical Data

The historical data trend for NBS 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.

NBS Bank ROE % Chart

NBS Bank Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
ROE %
Get a 7-Day Free Trial 15.07 36.23 41.78 36.35 62.73

NBS Bank Semi-Annual Data
Dec15 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23
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 41.20 28.26 43.97 74.43 59.37

Competitive Comparison of NBS Bank's ROE %

For the Banks - Regional subindustry, NBS 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.


NBS Bank's ROE % Distribution in the Banks Industry

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

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



NBS Bank ROE % Calculation

NBS Bank's annualized ROE % for the fiscal year that ended in Dec. 2022 is calculated as

ROE %=Net Income (A: Dec. 2022 )/( (Total Stockholders Equity (A: Dec. 2021 )+Total Stockholders Equity (A: Dec. 2022 ))/ count )
=18905.229/( (23151.97+37122.04)/ 2 )
=18905.229/30137.005
=62.73 %

NBS Bank's annualized ROE % for the quarter that ended in Jun. 2023 is calculated as

ROE %=Net Income (Q: Jun. 2023 )/( (Total Stockholders Equity (Q: Dec. 2022 )+Total Stockholders Equity (Q: Jun. 2023 ))/ count )
=24314/( (37122.04+44780)/ 2 )
=24314/40951.02
=59.37 %

* 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.


NBS Bank  (MSW:NBS) 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: Jun. 2023 )
=Net Income/Total Stockholders Equity
=24314/40951.02
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(24314 / 85358)*(85358 / 494903.87)*(494903.87 / 40951.02)
=Net Margin %*Asset Turnover*Equity Multiplier
=28.48 %*0.1725*12.0853
=ROA %*Equity Multiplier
=4.91 %*12.0853
=59.37 %

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: Jun. 2023 )
=Net Income/Total Stockholders Equity
=24314/40951.02
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (24314 / 37910) * (37910 / 85358) * (85358 / 494903.87) * (494903.87 / 40951.02)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 0.6414 * 44.41 % * 0.1725 * 12.0853
=59.37 %

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.


NBS Bank ROE % Related Terms

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


NBS Bank (MSW:NBS) Business Description

Traded in Other Exchanges
N/A
Address
Corner Chipembere Highway & Johnstone Roads, NBS House, PO Box 32251, Chichiri, Ginnery Corner, Blantyre, MWI
NBS Bank PLC is primarily involved in commercial banking, covering corporate and retail banking and treasury management. Services offered by the bank include current account, saving account, investment, loans, international trades, and internet banking. The company segments are divided into geographical areas including Northern region, Central region and the Southern region. Its branches are spread across Malawi.

NBS Bank (MSW:NBS) Headlines

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