How profitable a bank is affects its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the bank better prepared to withstand economic shocks. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Citizens Bank scored 4 out of a possible 30, falling short of the national average of 15.12.
One important measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Citizens Bank's most recent annualized quarterly return on equity was 1.34 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $206,000 on total equity of $14.4 million. The bank had an annualized return on average assets, or ROA, of 0.11 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.