ROE for a bank indicates:
A)how capable the management has been in converting assets into net earnings.
B)the growth of bank's interest margin.
C)the growth of bank's earnings spread.
D)the rate of return flowing to the shareholders of the bank.
E)All of the options are correct.

Question

Quizplus · Accepted Answer

ROE (Return on Equity) is a financial ratio that measures the amount of net income returned as a percentage of shareholders' equity. Therefore, it indicates the rate of return flowing to the shareholders of the bank.

ROE for a Bank Indicates