Profits and balance sheet developments at U.S. commercial banks in 2006

Mark Carlson and Gretchen Weinbach

Federal Reserve Bulletin, 2007, vol. 93, issue Jul, a37-a71

Abstract: The U.S. commercial banking industry continued to be quite profitable in 2006, and industry assets grew considerably. The strength in profitability and growth of bank balance sheets last year reflected favorable U.S. financial market conditions and the generally solid economic expansion. Industry return on equity advanced from its 2005 level, and the return on assets edged up to match its highest annual level in recent decades. Profitability was supported by brisk growth in non-interest income and generally strong asset quality; the flattening of the yield curve and competitive pressures, however, further weighed on net interest margins.

Keywords: Bank profits; Banks and banking, American (search for similar items in EconPapers)
JEL-codes: G21 L25 (search for similar items in EconPapers)
Date: 2007
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DOI: 10.17016/bulletin.2007.93-7

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