A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the bank more resilient in times of trouble. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, Metro Bank scored 16 out of a possible 30, beating the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one key measure of a bank's earnings. Metro Bank's most recent annualized quarterly return on equity was 8.08 percent, below the national average of 8.10 percent.
The bank recorded net income of $8.0 million on total equity of $101.5 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.13 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.