Return on Equity (ROE) is net income over equity capital and is an assessment of the financial return of shareholders’ investment
ROE is the net income before extraordinary items divided by the beginning balance of total equity (Mashayekhi, 2008)
the banks’ cumulative net income over the years 2007 and 2008, divided by the book value of equity as of year end 2006 (Aebi, 2012)