A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially 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 test of earnings, The PrivateBank and Trust Company scored 22 out of a possible 30, beating the national average of 16.52.
Return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity, is one widely used measure of a bank's earnings. The PrivateBank and Trust Company's most recent annualized quarterly return on equity was 12.69 percent, above the national average of 9.28 percent.
For the twelve months ended June 30, 2017, the bank recorded net income of $141.3 million on total equity of $2.31 billion. 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.