Bank return on assets (%, before tax)

This financial metric provides a comprehensive view of banking efficiency by measuring the pre-tax profitability of banks relative to their assets. Deriving its values from the Bankscope database, the calculation involves aggregating raw data at the country level prior to the division of net earnings by the average of total assets over two consecutive periods. This approach ensures that the metric accurately reflects the performance of financial institutions, taking into account potential variations in the banks included in the analysis across different indicators. Utilizing bank-specific unconsolidated data enhances the granularity and relevance of the results, offering valuable insights into how effectively banks leverage their assets to generate profits before taxation across various regions. Source: