A bank's profitability has an effect on its long-term survivability. Earnings may be retained by the bank, increasing its capital buffer, or be used to deal with problematic loans, likely making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money have less ability to do those things.
Citizens Bank scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Citizens Bank's most recent annualized quarterly return on equity was 3.65 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $1.6 million on total equity of $44.1 million. The bank had an annualized return on average assets, or ROA, of 0.42 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.