A bank's earnings performance has an effect on its safety and soundness. A bank can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the bank better able to withstand financial trouble. Banks that are losing money, however, are less able to do those things.
The Haverford Trust Company scored 30 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one widely used measure of a bank's earnings. The Haverford Trust Company's most recent annualized quarterly return on equity was 27.84 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $6.2 million on total equity of $21.6 million. The bank experienced an annualized return on average assets, or ROA, of 4.39 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.