A bank's earnings performance has an effect on its safety and soundness. Earnings may be retained by the bank, boosting its capital cushion, or be used to address problematic loans, likely making the bank better prepared to withstand financial shocks. Obviously, banks that are losing money are less able to do those things.
On Bankrate's earnings test, Scottrade Bank scored 26 out of a possible 30, above the national average of 16.52.
Return on equity, calculated by dividing net income (profit, basically) by total equity, is one important way to measure a bank's earnings. Scottrade Bank's most recent annualized quarterly return on equity was 17.52 percent, above the national average of 9.28 percent.
The bank reported net income of $114.8 million on total equity of $1.36 billion for the twelve months ended June 30, 2017. The bank experienced an annualized return on average assets, or ROA, of 1.35 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.