A bank's earnings performance has an effect on its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, potentially making the bank better able to withstand financial trouble. Obviously, banks that are losing money have less ability to do those things.
Capital One, National Association scored 12 out of a possible 30 on Bankrate's test of earnings, less than the national average of 20.00.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one key measure of a bank's earnings. The most recent annualized quarterly return on equity for Capital One, National Association was 5.61 percent, below the national average of 9.24 percent.
The bank earned net income of $1.03 billion on total equity of $37.86 billion for the twelve months ended June 30, 2017. The bank reported an annualized return on average assets, or ROA, of 0.73 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.13 percent.