How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, giving a boost to its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand economic shocks. Conversely, losses take away from a bank's ability to do those things.
On Bankrate's test of earnings, Capital One, N.A. scored 24 out of a possible 30, above the national average of 20.00.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Capital One, N.A. was 14.52 percent, above the national average of 9.24 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $887.7 million on total equity of $12.56 billion. The bank experienced an annualized return on average assets, or ROA, of 1.63 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.13 percent.