Reading 17 exhibit 34 RoAE and PORoAE

[archived_user]

Hi, maybe because its past midnight and have been grinding the books lately. I don’t understand the chart.
How is it possible to Have a return on average equity at 12.20% and pretax operating return on average equity of 9.00%?
I mean, shouldn’t the pretax be higher by law?
Thank you.
Edit: its on page 277 of CFAI

 

[archived_user]

Return on Average Equity uses net income in the numerator.
Pretax Operating Return on Average Equity uses pretax operating income in the numerator.
Obviously, there was some non-operating income.

 

[archived_user]

got it. thank you!

 

[archived_user]

You’re welcome.