How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
On Bankrate's test of earnings, Goldman Sachs Bank USA scored 12 out of a possible 30, falling short of the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Goldman Sachs Bank USA's most recent annualized quarterly return on equity was 5.82 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank reported net income of $721.0 million on total equity of $24.87 billion. The bank had an annualized return on average assets, or ROA, of 0.93 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.