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Return on capital (ROC) is used by financial institutions, such as banks, not only to measure profitability but also to indicate their ability to generate value from shareholders’ investments. In 2024, UniCredit reported the highest ROC among major European banks, at 19.9 percent.

Pre-tax profit

Pre-tax profit displays the amount profit a company has made before paying corporate income taxes. Essentially, it is the calculation of deducting all expenses from revenue except taxes. As of 2024, HSBC had the highest amount of pre-tax profit of any bank in Europe with over ** billion U.S. dollars.

Other measurements of a banks size

Another way of measuring a bank's strength, size and health is through its total assets. Total assets are one of the main measures of a bank's prosperity and is defined as all assets owned by a bank. This includes, but is not limited to; cash and balances, loans and advances to banks and customers, as well as debt securities. Europe’s largest bank in 2024 had close **** euros in total assets. Another measure is market capitalization, which is a measure where a company’s size is calculated by multiplying the number of outstanding shares by the cost of one share. Market Capitalization is an important metric for investors as it is simple to calculate and is also a good indicator for risk-assessment.