How profitable a bank is affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
On Bankrate's test of earnings, The Citizens Bank scored 24 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (profit, essentially) by total equity, is one widely used measure of a bank's earnings. The Citizens Bank's most recent annualized quarterly return on equity was 15.96 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $11.1 million on total equity of $69.5 million. The bank reported an annualized return on average assets, or ROA, of 1.54 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.