How profitable a bank is affects its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the bank more resilient in tough times. Losses, on the other hand, lessen a bank's ability to do those things.
On Bankrate's earnings test, Clifton Savings Bank scored 6 out of a possible 30, failing to reach the national average of 15.12.
One key measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. Clifton Savings Bank's most recent annualized quarterly return on equity was 2.19 percent, below the national average of 8.10 percent.
The bank recorded net income of $5.5 million on total equity of $250.5 million for the twelve months ended December 31, 2017. The bank reported an annualized return on average assets, or ROA, of 0.36 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.