A bank's profitability affects its long-term survivability. Earnings can be retained by the bank, boosting its capital buffer, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Conversely, losses lessen a bank's ability to do those things.
Peru Federal Savings Bank scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 15.12.
One important way to measure a bank's earnings is return on equity, or net income (profit, essentially) divided by the total amount of equity. Peru Federal Savings Bank's most recent annualized quarterly return on equity was 3.31 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank reported net income of $622,000 on total equity of $19.0 million. The bank experienced an annualized return on average assets, or ROA, of 0.43 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.