How profitable a bank is has an effect on its safety and soundness. A bank can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the bank more resilient in times of trouble. However, banks that are losing money have less ability to do those things.
Webster Bank, National Association scored 20 out of a possible 30 on Bankrate's test of earnings, above the national average of 15.12.
One widely used measure of a bank's earnings is return on equity, calculated by dividing net income (profit, essentially) by the total amount of equity. The most recent annualized quarterly return on equity for Webster Bank, National Association was 11.16 percent, above the national average of 8.10 percent.
For the twelve months ended December 31, 2017, the bank recorded net income of $280.6 million on total equity of $2.58 billion. The bank reported an annualized return on average assets, or ROA, of 1.07 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.