Return on equity (ROE) of selected banks in the Netherlands 2015-2021
The return on equity (ROE) of the six largest Dutch banks was higher in 2021 than it was in 2020, meaning they were making more profit than before. The ROE is one of several measures to look into bank profitability, in this case measuring income that returned as shareholder equity. Normally, ROEs of around 15 to 20 percent are considered good returns. That Dutch banks do not reach these numbers is probably due to low-interest rates, as a consequence of the monetary policy of the European Central Bank (ECB). For several years, this body maintained artificially low-interest rates in an effort to increase inflation on the European continent.
