Work out return on assets (bank) instantly with clear inputs, formula shown and shareable results.
Return on assets for a bank is small in absolute terms because balance sheets are large relative to equity, so it is normally quoted in basis points. Around 100 basis points is the traditional benchmark for a well-run commercial bank.
Return on assets
ROA = net profit / average total assets
Figures are estimates based on the inputs given. Bank charges, regulatory minima and market rates change and differ between institutions and jurisdictions. This is not financial advice — confirm with your bank or treasury policy.
Because banks are highly leveraged. A one percent return on assets can still be a fifteen percent return on equity.
An average of opening and closing, since the balance sheet changes materially over a year.