Profit or loss is an accounting concept that reflects the banking performance from the beginning of the year till the end of reporting period. In other words, it is either a profit earned or a loss made after tax.
The fact that a bank makes a profit means that its income exceeds expenses and the bank has an opportunity to increase capital, to develop its business or pay out dividends to its shareholders.
The fact that a bank has losses means that expenses exceed income. It is important to find out what are the reasons for losses in each particular case. Rather often, expenses exceed income when a bank has recently commenced its operations or made large investments in business development. Losses may also be related to reorganizing the bank's activities or loan loss provisioning, as well as revaluation of investments.