A bank's profitability has an effect on its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially 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, TD Bank USA, National Association scored 12 out of a possible 30, lower than the national average of 15.12.
Return on equity, calculated by dividing net income (profit, basically) by the total amount of equity, is one widely used measure of a bank's earnings. TD Bank USA, National Association's most recent annualized quarterly return on equity was 6.33 percent, below the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $145.9 million on total equity of $2.44 billion. The bank reported an annualized return on average assets, or ROA, of 0.63 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.