A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, increasing its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic trouble. Conversely, losses reduce a bank's ability to do those things.
On Bankrate's test of earnings, Beal Bank USA scored 18 out of a possible 30, exceeding the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by the total amount of equity. Beal Bank USA's most recent annualized quarterly return on equity was 10.20 percent, above the national average of 8.10 percent.
The bank recorded net income of $213.2 million on total equity of $2.24 billion for the twelve months ended December 31, 2017. The bank experienced an annualized return on average assets, or ROA, of 3.97 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.