A bank's profitability has an effect on its long-term survivability. Earnings can be retained by the bank, boosting its capital cushion, or be used to deal with problematic loans, likely making the bank more resilient in tough times. Conversely, losses diminish a bank's ability to do those things.
On Bankrate's earnings test, People's United Bank, National Association scored 12 out of a possible 30, coming in below the national average of 16.52.
One key way to measure a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by total equity. People's United Bank, National Association's most recent annualized quarterly return on equity was 5.36 percent, below the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank earned net income of $142.1 million on total equity of $5.65 billion. The bank experienced an annualized return on average assets, or ROA, of 0.69 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.14 percent.