Return on Equity SBL

 

Return on Equity

ROE is expressed as a percentage and can be calculated for any company if net income and equity are both positive numbers. Net income is calculated before dividends paid to common shareholders and after dividends to preferred shareholders and interest to lenders.

Formula: 

Return on Equity Sonali Bank Limited
FY2019	FY2018	FY2017	FY2016	FY2015
3.92%	3.32%	10.63%	2.18%	0.99%

 

Fig: ROE of Sonali Bank for 2015-19

 

 

In the graph, the researcher finds; up-down return on equity. Hare in 2015 and 16 the return on equity was consistently 0.99% and 2.18% then the next year in 2017 it moved to the top at 10.63%. Then in 2018 and 19 the return on equity consistently was 3.32% and   3.93%. In general eyes, it is an up-down graph. But the researcher focused deeply and fined it, the return on equity of Sonali Bank gradually moved upward from 2015 to 2019 except in 2017 ( 0.99% → 2.18% →3.32% → 2.92%). And in 2017 there was an economic benefit.