How profitable a bank is has an effect on 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, potentially 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 earnings test, Capital One Bank (USA), National Association scored 24 out of a possible 30, beating out the national average of 16.52.
One important way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Capital One Bank (USA), National Association's most recent annualized quarterly return on equity was 14.52 percent, above the national average of 9.28 percent.
The bank reported net income of $887.7 million on total equity of $12.56 billion for the twelve months ended June 30, 2017. 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 1.14 percent.