How profitable a bank is has an effect on its long-term survivability. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in tough times. Banks that are losing money, however, have less ability to do those things.
On Bankrate's earnings test, Washington Federal Bank For Savings scored 20 out of a possible 30, beating out the national average of 16.52.
One important way to measure a bank's earnings is return on equity, or net income (essentially profit) divided by total equity. Washington Federal Bank For Savings's most recent annualized quarterly return on equity was 11.27 percent, above the national average of 9.28 percent.
The bank reported net income of $1.1 million on total equity of $20.4 million for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.41 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.