How profitable a bank is affects its safety and soundness. Earnings may be retained by the bank, boosting its capital buffer, or be used to deal with problematic loans, potentially making the bank better able to withstand financial shocks. Losses, on the other hand, lessen a bank's ability to do those things.
John Deere Financial, f.s.b. received above-average marks on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. The most recent annualized quarterly return on equity for John Deere Financial, f.s.b. was 17.65 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank earned net income of $90.6 million on total equity of $543.7 million. The bank had an annualized return on average assets, or ROA, of 3.05 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.