Bank return on equity (%, after tax)

This indicator provides a critical measure of a bank's profitability relative to its equity base, offering insights into financial performance while accounting for tax implications. Constructed using data from Bankscope, the numerator comprises after-tax income from banks, while the denominator reflects the average equity over two consecutive periods, ensuring a balanced view of equity changes. The calculations are performed at a country level, facilitating comparative analyses across regions. Notably, the selection of banks may vary across different indicators, highlighting the importance of understanding the contextual framework of this metric. By focusing on unconsolidated data, it captures the distinct performance of individual banks, offering stakeholders valuable intelligence for investment decisions and policy formulation. Source: