FDIC-insured commercial banks reported record profits of $71.7 billion for 1999 along with an unprecedented 1.3% rate of return on assets. An important factor in commercial banks’ strong profitability was a reduction in noninterest expenses relative to a year earlier. Although noninterest expenses rose in 1999:IVQ relative to 1999:IIIQ, they were nonetheless lower than in the previous year. Noninterest income continues to play an increasingly important role, accounting for 44.1% of net operating revenues.
Suggested citation: "Banking Conditions," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-05, pp. 15, 05.01.2000.