Bank return on tangible common equity, or ROTCE, measures earnings attributable to common shareholders relative to average tangible common equity under an issuer's non-GAAP methodology.
ROTCE =
Adjusted Common Earnings ÷ Average Tangible Common Equity
Why ROTCE matters
ROTCE helps investors assess how efficiently a bank generates earnings from tangible common capital.
It is often read with return on average common equity, return on average assets, tangible book value growth, and the bank's cost of equity.
Methodology differences matter
Issuers may adjust earnings for intangible amortization or other items and may define average tangible equity differently. Preserve the issuer reconciliation before comparing banks.
JPMorgan and U.S. Bancorp both disclose ROTCE and reconcile the underlying tangible common equity measures.
Sources:
ROTCE is a non-GAAP profitability measure, not a regulatory capital ratio or a substitute for ROA.
Part of the Bank Balance Sheet and Returns
See It in Company Research
These companies are examples of how the concept is reported or discussed in public filings. Definitions can differ by issuer; these links open company research rather than a normalized metric comparison.
- JPMOpen operating-model research →3 of 14 reviewed concepts in Bank Balance Sheet and ReturnsTangible capital and shareholder returns3 of 3 bridge concepts supportedContinue through this bridge:Bank Tangible Common EquityTangible Book Value per Share
- USBOpen operating-model research →6 of 14 reviewed concepts in Bank Balance Sheet and ReturnsTangible capital and shareholder returns3 of 3 bridge concepts supportedContinue through this bridge:Bank Tangible Common EquityTangible Book Value per Share
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These companies are linked to at least two other reviewed concepts in the same operating model, but are not currently linked to this concept. This is broader research navigation, not evidence that the company reports an equivalent metric.
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