How profitable a bank is has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital cushion, or be used to deal with problematic loans, potentially making the bank more resilient in tough times. Conversely, losses take away from a bank's ability to do those things.
Bank of Hope scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. The most recent annualized quarterly return on equity for Bank of Hope was 8.21 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $80.3 million on total equity of $1.98 billion. The bank had an annualized return on average assets, or ROA, of 1.18 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.