How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Banks that are losing money, however, are less able to do those things.
On Bankrate's earnings test, Chemical Bank scored 14 out of a possible 30, coming in below the national average of 15.12.
One widely used way to measure a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. Chemical Bank's most recent annualized quarterly return on equity was 6.12 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $162.7 million on total equity of $2.67 billion. The bank had an annualized return on average assets, or ROA, of 0.88 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.