How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to deal with 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.
CTBC Bank Corp. (USA) fell short of the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. CTBC Bank Corp. (USA)'s most recent annualized quarterly return on equity was 2.77 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $12.2 million on total equity of $443.1 million. The bank had an annualized return on average assets, or ROA, of 0.39 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.