How profitable a bank is affects its long-term survivability. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Banks that are losing money, however, have less ability to do those things.
Bank of Prague scored 26 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important measure of a bank's earnings. Bank of Prague's most recent annualized quarterly return on equity was 16.76 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $656,000 on total equity of $4.0 million. The bank reported an annualized return on average assets, or ROA, of 2.69 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.