How profitable a bank is affects its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, American Express Bank, FSB. scored 30 out of a possible 30, better than the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for American Express Bank, FSB. was 28.46 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $882.7 million on total equity of $5.97 billion. The bank had an annualized return on average assets, or ROA, of 3.52 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.