Profits and balance sheet developments at U.S. commercial banks in 1995

William R. Nelson and Brian K. Reid

Federal Reserve Bulletin, 1996, vol. 82, issue Jun, 483-505

Abstract: Continued profitability and rapid growth of assets combined to lift net income of U.S. commercial banks almost 10 percent in 1995 to a record $49 billion. Profitability, as measured by either return on assets or return on equity, edged up near the peak level posted in 1993. Although net interest income as a share of average assets fell slightly, the decline was more than offset by a decline in net noninterest expense. Provisioning for loan and lease losses edged up, as did charge-offs, but both remained quite low. With delinquency rates for real estate and business loans declining, overall loan quality continued to be very good, even though delinquency rates for consumer loans, particularly credit card loans, rose sharply. Banks retained about one-third of their income, and capital-asset ratios generally remained well above regulatory minimums.

Keywords: Bank; profits (search for similar items in EconPapers)
JEL-codes: G21 (search for similar items in EconPapers)
Date: 1996
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.federalreserve.gov/pubs/bulletin/1996/696lead.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgrb:y:1996:i:jun:p:483-505:n:v.82no.6

Ordering information: This journal article can be ordered from

DOI: 10.17016/bulletin.1996.82-6

Access Statistics for this article

More articles in Federal Reserve Bulletin from Board of Governors of the Federal Reserve System (U.S.) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ; Keisha Fournillier ().