The latest statistics show that the U.S. banking industry continues to enjoy good health. In 1999:IIQ, banks posted $17 billion in earnings, despite a $1.5 billion net loss at one bank that had large, merger-related charges. Net gains in securities contributed little to this second-best quarterly profit ever. Other positive news was that return on equity inched up to 14.97%, improving further on the high level banks have achieved since 1993. Also, bank capital dipped slightly but remained near the record high achieved in 1998.
Suggested citation: "Banking Conditions," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-10, pp. 15-17, 10.01.1999.