A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's earnings test, Argentine Federal Savings scored 6 out of a possible 30, coming in below the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one important way to measure a bank's earnings. Argentine Federal Savings's most recent annualized quarterly return on equity was 2.40 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $173,000 on total equity of $7.3 million. The bank reported an annualized return on average assets, or ROA, of 0.34 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.