A bank's earnings performance has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
MetaBank outperformed the average on Bankrate's earnings test, achieving a score of 26 out of a possible 30.
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. MetaBank's most recent annualized quarterly return on equity was 18.10 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $44.6 million on total equity of $518.1 million. The bank experienced an annualized return on average assets, or ROA, of 2.20 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.