A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, expanding its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in times of trouble. Banks that are losing money, however, have less ability to do those things.
FirstBank Puerto Rico scored 12 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for FirstBank Puerto Rico was 5.63 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $55.8 million on total equity of $2.02 billion. The bank reported an annualized return on average assets, or ROA, of 0.94 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.