A bank's profitability has an effect on its safety and soundness. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Banks that are losing money, however, have less ability to do those things.
Bank of England scored 22 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 16.52.
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. The most recent annualized quarterly return on equity for Bank of England was 14.19 percent, above the national average of 9.28 percent.
The bank earned net income of $3.3 million on total equity of $48.0 million for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 2.12 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.