A bank's earnings performance affects its long-term survivability. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Bank of Hawaii scored 24 out of a possible 30, exceeding 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 of Hawaii's most recent annualized quarterly return on equity was 15.66 percent, above the national average of 8.10 percent.
The bank earned net income of $178.1 million on total equity of $1.16 billion for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.06 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.