HDBNEUTRAL

HDB Return on Equity (ROE) Analysis

13.8%

Higher than 55% of Financial Services sector peers

Updated 33h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so 13.8% means HDB earns $0.138 for every $1 of shareholder capital.

Sector Performance

55th percentile

HDB

13.8%

Sector Median

12.9%

Sector Avg

19.1%

Prior Period

13.9%(May 2026)

→ Stable

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so 13.8% means HDB earns $0.138 for every $1 of shareholder capital.

The current ROE sits above the sector median of 12.9%, placing HDB at the 55th percentile among its financial services peers. The overall 8-quarter trend is N/A, while the year-over-year change is also N/A; the most recent quarter saw a decline of -0.7%, from 13.9% to 13.8%. This combination of a level above the peer median with a slight quarterly drop suggests modest stability rather than a clear growth catalyst, meaning the risk profile is balanced. The metric supports the overall NEUTRAL verdict: HDB is performing slightly better than half its sector peers but shows no strong upward momentum, so the stock’s case rests on other factors.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about HDB?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does HDB's Return on Equity (ROE) compare to its sector?

HDB's Return on Equity (ROE) of 13.8% compares to a Financial Services sector median of 12.9%, placing it in the 55th percentile.

Who are HDB's closest peers by Return on Equity (ROE)?

The closest Financial Services peers by Return on Equity (ROE) include: AFL (12.4%), ARES (12.3%), RF (11.9%), AIZ (14.9%), GOLD (10.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.