Close panel

Close panel

Close panel

Close panel

Economic results 30 Jan 2020

What is the ROTE?

ROTE or “Return on Tangible Equity” is a ratio that helps measure a company’s profitability.

As is the case with ROE (“Return on Equity”), ROTE is calculated by dividing the company’s net income by average shareholders’ equity but, in contrast, ROTE excludes  intangible elements such as goodwill, debt that can be converted into common stock, and preferred stock.

With the last published data (through the close of Q4 2019), BBVA had a ROTE of 11.9 percent, significantly above the 7,0 percent average for its European peer group.

Other interesting stories