Sunday, 8 November 2026 Weekly snapshot · Not investment advice standard-equity.report
Margins
Pretax Margin
Pretax income as a percentage of revenue. Used for banks.
Definition
Pretax margin shows operating profitability before income taxes. For banks specifically, it's a more useful operational measure than FCF margin (which doesn't translate well to a balance-sheet-led business).
Formula
(Pretax Income ÷ Revenue) × 100
Why it matters
Pretax margin strips out tax-rate differences across jurisdictions and time periods, isolating operational performance. Useful when comparing banks across countries with different corporate tax regimes.
How Standard Equity uses it
Compared with peers in the AI report for banks and broker-dealers, in place of operating margin.
The metric
| Category | Margins |
|---|---|
| Unit | % |
| Applies to | Banks only |