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, likely making the bank more resilient in tough times. Losses, on the other hand, take away from a bank's ability to do those things.
Morgan Stanley Private Bank, National Association scored 20 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one key measure of a bank's earnings. Morgan Stanley Private Bank, National Association's most recent annualized quarterly return on equity was 10.89 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $640.0 million on total equity of $6.19 billion. The bank reported an annualized return on average assets, or ROA, of 1.08 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.