Commercial banks’ balance sheets showed continued signs of health through the fourth quarter of 1998. Despite a slowdown in profits relative to 1997, earnings were still strong, with the net interest margin remaining above 4%. Return on equity for the 1998 calendar year was 13.95%. Moreover, nearly 95% of all commercial banks posted positive profits for all of 1998.
Suggested citation: "Banking Conditions," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-06, pp. 15-17, 06.01.1999.