A bank's profitability affects its long-term survivability. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the bank more resilient in times of trouble. Losses, on the other hand, diminish a bank's ability to do those things.
Royal Bank America scored 22 out of a possible 30 on Bankrate's earnings test, above the national average of 16.52.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. Royal Bank America's most recent annualized quarterly return on equity was 14.19 percent, above the national average of 9.28 percent.
The bank recorded net income of $5.2 million on total equity of $77.8 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.28 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.