Financial research concept

Bank Tangible Common Equity: Common Equity Excluding Intangibles

Bank tangible common equity adjusts common shareholders' equity for goodwill and other intangible assets to create a tangible common-capital measure used in bank analysis.

By Lee BaileyPublished Sep 21, 2026

Research context

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Research date: Sep 21, 2026Use the dated article and cited sources for the definition, examples, and stated limitations.
Operating-model context: 14 connected conceptsPart of the reviewed Bank Balance Sheet and Returns; issuer definitions remain distinct where disclosed.
Company examples: 2 reviewed companiesRelationships reflect supported examples, not a normalized cross-company KPI ranking.

Why TCE matters
Do not confuse TCE with CET1
Part of the Bank Balance Sheet and Returns
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Bank tangible common equity, or TCE, is a non-GAAP capital measure that starts with common shareholders' equity and removes specified intangible assets, subject to the issuer's reconciliation.

Tangible Common Equity
≈ Common Equity - Goodwill - Other Intangible Assets

Issuer calculations can include tax-related adjustments.

Why TCE matters

Bank investors use tangible common equity to focus on common equity supported by tangible net assets. It is commonly used in tangible book value per share, return on tangible common equity, tangible common equity ratios, and acquisition analysis.

Do not confuse TCE with CET1

Common Equity Tier 1 Ratio is a regulatory capital measure based on prescribed regulatory adjustments and risk-weighted assets.

TCE is a non-GAAP financial measure and does not replace regulatory capital ratios.

JPMorgan reconciles common stockholders' equity to tangible common equity by adjusting for goodwill, other intangible assets, and certain deferred tax liabilities.

Source:

JPMorgan Chase 2025 Form 10-K

Tangible common equity is a tangible common-capital measure, not a regulatory capital ratio.

Part of the Bank Balance Sheet and Returns

Connect average loans and deposits, earning-asset yields, deposit pricing and mix, tangible common equity, shareholder returns, and early problem-asset signals to understand bank balance-sheet economics.

Browse the full operating model in Company Analysis →

Where this concept fits

Tangible capital and shareholder returnsCurrent relationship
Tangible common equity removes specified intangible assets from common equity, tangible book value expresses that capital per share, and ROTCE shows profitability relative to average tangible common equity under the issuer's reconciliation. Generic ROA and ROE remain owned by their existing canonical encyclopedia pages rather than duplicated here.
Return on Tangible Common Equity Tangible Book Value per ShareBank Tangible Common EquityCurrent concept
Average balance and spread engine
Average loans, deposits, and interest-earning assets align balance-sheet scale with the period that generated earnings. Asset and loan yields show gross pricing, while interest-bearing deposit rates, noninterest-bearing deposit mix, and interest rate spread show how funding composition and pricing affect the spread engine.
Bank Average Deposits Average Interest-Earning Assets Bank Average Loans Interest-Bearing Deposit Rate Interest-Earning Asset Yield Bank Interest Rate Spread Bank Loan Yield Noninterest-Bearing Deposit Mix
Credit deterioration ladder
Criticized assets can identify elevated weakness before default, classified assets generally represent more severe adverse grades, and nonperforming assets capture loans and other assets that have reached nonperforming status. Issuer definitions and denominators differ, so the three measures form a diagnostic sequence rather than a standardized formula.
Classified Assets Ratio Criticized Asset Ratio Nonperforming Assets Ratio

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:Return on Tangible Common Equity Tangible 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:Return on Tangible Common Equity Tangible Book Value per Share

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