How profitable a bank is has an effect on its safety and soundness. 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. Losses, on the other hand, lessen a bank's ability to do those things.
CIBM Bank received above-average marks on Bankrate's test of earnings, achieving a score of 30 out of a possible 30.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (essentially profit) by total equity. CIBM Bank's most recent annualized quarterly return on equity was 30.70 percent, above the national average of 8.10 percent.
The bank reported net income of $20.9 million on total equity of $83.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 3.24 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.