Chart 25 Bank Earnings Remain High

Year Commercial Bank Return on Equity (percent)
1972 11.99
1973 13.43
1974 12.79
1975 11.79
1976 11.35
1977 11.71
1978 12.9
1979 13.91
1980 13.65
1981 13.05
1982 12.07
1983 11.07
1984 10.52
1985 11.07
1986 9.94
1987 1.55
1988 13.19
1989 7.71
1990 7.46
1991 7.94
1992 12.98
1993 15.34
1994 14.61
1995 14.66
1996 14.45
1997 14.67
1998 13.94
1999 15.3
2000 13.99
2001 13.08
2002 14.46
2003 15.31
2004 13.74
2005 13.19

Note: 2005 data as of September 30, 2005. All other data as of year-end. Adjusted Return on Equity (ROE) estimates ROE level without merger accounting effects on income and equity. Commercial banks: 14.17 as of third quarter 2004 and 15.22 adjusted. Commercial banks: 13.29 as of third quarter 2005 and 15.04, adjusted. The chart shows recession periods in general from approximately late 1972 to mid-1974, mid- to late 1979, late 1980 to early 1982, 1990, and 2001.

Source: Integrated Banking Information System (Office of the Comptroller of the Currency).