How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the bank better prepared to withstand financial shocks. Losses, on the other hand, reduce a bank's ability to do those things.
The Bank of New York Mellon scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 15.12.
One key way to measure a bank's earnings is return on equity, or net income (profit, basically) divided by total equity. The Bank of New York Mellon's most recent annualized quarterly return on equity was 9.81 percent, above the national average of 8.10 percent.
The bank reported net income of $2.50 billion on total equity of $26.98 billion for the twelve months ended December 31, 2017. The bank experienced 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.