A bank's earnings performance affects its safety and soundness. A bank can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the bank better able to withstand economic trouble. Losses, on the other hand, take away from a bank's ability to do those things.
On Bankrate's test of earnings, Washington Federal, National Association scored 18 out of a possible 30, better than the national average of 16.52.
Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. The most recent annualized quarterly return on equity for Washington Federal, National Association was 8.77 percent, below the national average of 9.28 percent.
The bank recorded net income of $86.4 million on total equity of $1.99 billion for the twelve months ended June 30, 2017. The bank had an annualized return on average assets, or ROA, of 1.15 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.14 percent.