How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the bank better prepared to withstand financial trouble. Conversely, losses lessen a bank's ability to do those things.
USAA Federal Savings Bank outperformed the average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for USAA Federal Savings Bank was 11.87 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $408.9 million on total equity of $7.04 billion. The bank experienced an annualized return on average assets, or ROA, of 1.02 percent, above the 1 percent deemed satisfactory in accordance with industry standards, but below the average for U.S. banks of 1.14 percent.