A bank's ability to earn money affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses lessen a bank's ability to do those things.
Bank Leumi USA scored 12 out of a possible 30 on Bankrate's earnings test, below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by the total amount of equity. Bank Leumi USA's most recent annualized quarterly return on equity was 5.61 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $37.2 million on total equity of $677.7 million. The bank had an annualized return on average assets, or ROA, of 0.53 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.