Profits and Balance Sheet Developments at U.S. Commercial Banks in 2002

N O T E . Except where otherwise indicated, data in this article are from the quarterly Reports of Condition and Income (Call Reports) for insured domestic commercial banks and nondeposit trust companies (hereafter, banks). The data consolidate information from foreign and domestic offices and have been adjusted to take account of mergers. For additional information on the adjustments to the data, see the appendix in William B. English and William R. Nelson, "Profits and Balance Sheet Developments at U.S. Commercial Banks in 1997,'' Federal Reserve Bulletin, vol. 84 (June 1998), p. 408. Size categories, based on assets at the start of each quarter, are as follows: the 10 largest banks, large banks (those ranked 11 through 100), mediumsized banks (those ranked 101 through 1,000), and small banks. At the start of the fourth quarter of 2002, the approximate asset sizes of the banks in those groups were as follows: the ten largest banks, more than $87 billion; large banks, $6.7 billion to $85 billion; mediumsized banks, $376 million to $6.5 billion; and small banks, less than $376 million. Many of the data series reported here begin in 1985 because the Call Reports were significantly revised in 1984. Data for 1984 and earlier years are taken from the Federal Deposit Insurance Corporation, Statistics on Banking, 1999. The data reported here are also available on the Internet at http://www.fdic.gov/bank/statistical/ statistics/index.html. Data shown in this article may not match data published in earlier years because of revisions and corrections. In the tables, components may not sum to totals because of rounding. Appendix table A.1, A—E, reports portfolio composition, income, and expense items, all as a percentage of overall net consolidated costs. Appendix table A.2 reports income statement data for all banks. The U.S. commercial banking industry continued to be highly profitable in 2002, despite the lackluster performance of the U.S. economy. Returns on both bank equity and assets rose, the latter reaching its highest level in more than three decades (chart 1).