How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, Banco Popular de Puerto Rico scored 16 out of a possible 30, better than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Banco Popular de Puerto Rico was 7.38 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $272.0 million on total equity of $3.72 billion. The bank experienced an annualized return on average assets, or ROA, of 0.85 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.