A bank's ability to earn money has an effect on its long-term survivability. A bank can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the bank better able to withstand economic shocks. However, banks that are losing money are less able to do those things.
On Bankrate's test of earnings, Wells Fargo Bank Northwest, National Association scored 18 out of a possible 30, beating out the national average of 15.12.
Return on equity, calculated by dividing net income (essentially, profit) by the total amount of equity, is one widely used measure of a bank's earnings. The most recent annualized quarterly return on equity for Wells Fargo Bank Northwest, National Association was 10.09 percent, above the national average of 8.10 percent.
The bank recorded net income of $128.5 million on total equity of $1.33 billion for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of 1.74 percent, above the 1 percent deemed satisfactory in accordance with industry standards, and above the average for U.S. banks of 1.00 percent.