How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the bank better prepared to withstand financial shocks. However, banks that are losing money have less ability to do those things.
On Bankrate's earnings test, USAA Savings Bank scored 30 out of a possible 30, exceeding the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one important way to measure a bank's earnings. USAA Savings Bank's most recent annualized quarterly return on equity was 80.93 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $206.4 million on total equity of $263.9 million. The bank had an annualized return on average assets, or ROA, of 11.45 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.