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

Author

Listed:
  • William R. Nelson
  • Brian K. Reid

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.

Suggested Citation

  • William R. Nelson & Brian K. Reid, 1996. "Profits and balance sheet developments at U.S. commercial banks in 1995," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), vol. 82(Jun), pages 483-505, June.
    • Handle: RePEc:fip:fedgrb:y:1996:i:jun:p:483-505:n:v.82no.6
    DOI: 10.17016/bulletin.1996.82-6
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    File URL: https://www.federalreserve.gov/pubs/bulletin/1996/696lead.pdf
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    Cited by:

    1. Board of Governors of the Federal Reserve System (U.S.), 1997. "Report to the Congress on the Availablity of Credit to Small Businesses - 1997," Reports and Studies 89208, Board of Governors of the Federal Reserve System (U.S.).
    2. Board of Governors of the Federal Reserve System (U.S.), 1997. "Report to the Congress on the Availability of Credit to Small Businesses, 1997," Reports and Studies 3747, Board of Governors of the Federal Reserve System (U.S.).

    More about this item

    Keywords

    Bank profits;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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