A bank's earnings performance affects its long-term survivability. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank more resilient in tough times. Conversely, losses lessen a bank's ability to do those things.
On Bankrate's test of earnings, Scotiabank de Puerto Rico scored 0 out of a possible 30, falling short of the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one widely used measure of a bank's earnings. Scotiabank de Puerto Rico's most recent annualized quarterly return on equity was -4.15 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $-37.8 million on total equity of $872.2 million. The bank reported an annualized return on average assets, or ROA, of -0.91 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.