Commercial banks continued to post strong performances in 1998:IIQ as earnings rose for the eighth consecutive quarter, topping $16 billion and setting their sixth consecutive quarterly record. What’s more important for shareholders, commercial banks’ profitability continued to be high, with return on equity running at 14.8%. As the economic environment becomes more volatile, banking regulators can take some comfort from the continued high ratio of equity capital to assets.
Suggested citation: “Banking Conditions,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-10, pp. 16-17, 10.01.1998.