Bank ROE – What Should Be Your Bank’s Target?
South State Correspondent
JULY 30, 2023
The banking industry’s return on equity (ROE) was 14.42% as of Q1/23 and so far is looking materially lower for Q2/23. How should community banks target and compare their ROE to the industry and their peer group, and what defines a top-performing bank? Most importantly, is there an ROE level ensuring a bank remains long-term independent and healthy?
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