A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the bank better able to withstand economic trouble. Losses, on the other hand, lessen a bank's ability to do those things.
HSBC Bank USA, National Association scored 8 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) 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 HSBC Bank USA, National Association was 3.10 percent, below the national average of 9.28 percent.
The bank reported net income of $368.7 million on total equity of $24.05 billion for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.