A bank's earnings performance has an effect on 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 better able to withstand economic shocks. Banks that are losing money, however, are less able to do those things.
On Bankrate's test of earnings, Malvern Federal Savings Bank scored 12 out of a possible 30, falling short of the national average of 15.12.
One key measure of a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The most recent annualized quarterly return on equity for Malvern Federal Savings Bank was 5.76 percent, below the national average of 8.10 percent.
The bank recorded net income of $6.6 million on total equity of $123.7 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 0.67 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.