Bank return on equity (%, before tax)

This financial metric, derived from Bankscope's comprehensive database, evaluates the profitability of banks by measuring how effectively they generate profits from their equity before tax obligations. The calculation involves aggregating financial data from individual banks at a country level, using the average of their equity from two consecutive periods as the denominator. By focusing on unconsolidated data, this indicator captures the nuances of banks' financial performance and investment efficiency. It’s important to note that the sample of banks may vary across different metrics, allowing for nuanced comparisons across regions and over time, thereby aiding stakeholders in assessing the relative health and operational efficiency of the banking sector. Source: