How profitable a bank is affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses take away from a bank's 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 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Capital One, National Association's most recent annualized quarterly return on equity was 5.61 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $1.03 billion on total equity of $37.86 billion. The bank experienced 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 1.14 percent.