How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Bofi Federal Bank scored 28 out of a possible 30, beating the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by the total amount of equity. Bofi Federal Bank's most recent annualized quarterly return on equity was 20.79 percent, above the national average of 9.28 percent.
The bank recorded net income of $79.7 million on total equity of $804.8 million for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 1.89 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.