How profitable a bank is affects its long-term survivability. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank more resilient in times of trouble. Obviously, banks that are losing money are less able to do those things.
Sallie Mae Bank received above-average marks on Bankrate's test of earnings, achieving a score of 26 out of a possible 30.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. Sallie Mae Bank's most recent annualized quarterly return on equity was 16.81 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $176.7 million on total equity of $2.19 billion. The bank had an annualized return on average assets, or ROA, of 1.87 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.