Skip to main content

Savings Association Performance

(PDF PDF icon)

Savings associations’ earnings held steady in the first six months of 2000, reaching $5.66 billion by June 30. Return on assets for the quarter stayed strong at 0.99%, just below the historical peak of 1.01% in 1998. Furthermore, return on equity hit 12.02%, its highest level since 1985. But unlike 1985, when return on equity was driven by high degrees of leverage, return on equity in 2000 has been generated by the robust return on assets and a steady net interest margin exceeding 3%. On the other hand, the increase in the share of savings associations reporting losses (from 4.1% in 1997 to 7.88% in 2000:IIQ) suggests the need for caution in interpreting the otherwise positive earnings trends.


Suggested citation: "Savings Association Performance," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-12, pp. 19, 12.01.2000.

Upcoming EventsSEE ALL