Report on the condition of the U.S. banking industry: first quarter, 2005.Assets and earnings of reporting bank holding companies continued to show healthy growth in the first quarter of 2005. Total assets reached $10.7 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time. (mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed. In the USA and Canada, 10^12. , an increase of $355.0 billion from year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2004, while net income rose 13.8 percent, to $32.9 billion over the same period. Securities and money market assets accounted for more than two-thirds of the total growth in assets. Most of this increase occurred at the fifty large bank holding companies (up $185.4 billion, an increase of 6.4 percent) as these large companies added to their holdings of mortgage-backed securities Mortgage-backed securities (MSBs) Securities backed by a pool of mortgage loans. . These acquisitions were made in large part to investment portfolios as companies adjusted their interest rate risk exposures--responding to long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. interest rates that remained unexpectedly low through the quarter despite significant increases in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. rates--although some firms expanded the securities and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. they held in trading portfolios. In addition to the fifty large bank holding companies, insurance-oriented financial holding companies added significantly to their securities holdings (up $76.6 billion, an increase of 18.4 percent). Loans grew somewhat less robustly, rising $71.6 billion, or 1.4 percent, as did unused commitments to lend (up $83.4 billion, or 1.7 percent). Residential mortgage loans, including home equity lines of credit, contributed significantly to this increase. Commercial loans also increased modestly, although some of that rise was due to one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. technical factors and reclassifications. Weakness was evident in credit card balances, attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to a seasonal slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in new credit card spending and significantly accelerated repayments as households shifted some credit card balances to the rapidly growing home-equity loan Home-Equity Loan A consumer loan secured by a second mortgage, allowing home owners to borrow against their equity in the home. The loan is based on the difference between the homeowner's equity and the home's current market value. category. Commercial real estate lending, especially for construction, again was a significant source of growth for the industry. Nondeposit borrowings increased sharply, rising 6.8 percent ($209.2 billion), as strong asset growth outstripped deposit increases (up $95.7 billion, or 1.8 percent). Although long-term rates remained low, the increase in borrowings was mostly in short-maturity instruments. Regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. capital ratios remained strong but tightened slightly during the quarter, as Tier 1 and leverage ratios declined 8 basis points and 11 basis points respectively. Problem assets continued to decline from already-low levels, reaching 0.76 percent of loans and related assets. Net charge-offs also declined to 0.57 percent of average loans, and provisions for loan losses followed suit. Fueled by asset growth and improved asset quality, net income rose to $32.9 billion, representing a return of 14.84 percent on average equity and 1.24 percent on average assets. Net interest margins narrowed significantly to 3.18 percent compared with 3.28 percent in the fourth quarter of 2004, a constriction constriction /con·stric·tion/ (kon-strik´shun) 1. a narrowing or compression of a part; a stricture.constric´tive 2. a diminution in range of thinking or feeling, associated with diminished spontaneity. that was attributable to the flattening of the yield curve Flattening of the yield curve A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift. and, to a lesser extent, competitive pressures on loan and deposit spreads. Non-interest income surged, supported by strong trading revenues and mortgage servicing Mortgage servicing The collection of monthly payments and penalties, record keeping, payment of insurance and taxes, and possible settlement of default , involved with a mortgage loan. income. Assets of the securities broker-dealer Broker-Dealer A person or firm in the business of buying and selling securities operating as both a broker and dealer depending on the transaction. Notes: Technically, a broker is only an agent who executes orders on behalf of clients, whereas a dealer acts as a principal subsidiaries of reporting bank holding companies jumped 29.8 percent (or $214.2 billion), to $933.4 billion. Nearly all of that increase was from a single large bank holding company (Citigroup Citigroup U.S. holding company formed in 1998 from the merger of Citicorp (itself a holding company incorporated in 1967) and Travelers Group, Inc. The $70 billion merger included one of the largest U.S. investment banks, Salomon Smith Barney Inc. ), resulting from a clarification Clarification The removal of small amounts of fine, particulate solids from liquids. The purpose is almost invariably to improve the quality of the liquid, and the removed solids often are discarded. of reporting instructions rather than a change in the underlying volumes.
1. Financial characteristics of all reporting bank holding companies
in the United States
Millions of dollars except as noted, not seasonally adjusted
Account or ratio (1, 2) 2000 2001 2002
Balance sheet
Total assets 6,745,836 7,486,951 7,990,945
Loans 3,728,569 3,832,553 4,080,049
Securities and money market 2,197,434 2,568,705 2,866,857
Allowance for loan losses -60,376 -68,833 -74,798
Other 880,209 1,154,528 1,118,837
Total liabilities 6,227,975 6,901,281 7,350,200
Deposits 3,771,749 4,025,769 4,357,245
Borrowings 1,991,564 2,073,770 2,244,331
Other (3) 464,662 801,742 748,624
Total equity 517,861 585,670 640,745
Off-balance-sheet
Unused commitments to lend (4) 3,297,511 3,481,745 3,650,669
Securitizations outstanding (5) n.a. 276,717 295,001
Derivatives (notional
value, billions) (6) 43,608 48,276 57,886
Income statement
Net income (7) 73,168 66,510 85,731
Net interest income 197,695 224,470 246,048
Provisions for loan losses 27,604 40,661 45,107
Non-interest income 200,872 218,984 221,532
Non-interest expense 258,213 302,140 296,964
Security gains or losses -606 4,338 4,598
Ratios (percent)
Return on average equity 15.19 11.86 14.11
Return on average assets 1.13 .91 1.11
Net interest margin (8) 3.58 3.61 3.74
Efficiency ratio (7) 63.95 66.92 62.38
Nonperforming assets to loans
and related assets 1.09 1.44 1.44
Net charge-offs to average loans .64 .89 1.04
Loans to deposits 98.86 95.20 93.64
Regulatory capital ratios
Tier 1 risk-based 8.84 8.92 9.22
Total risk-based 11.80 11.92 12.28
Leverage 6.81 6.68 6.72
Number of reporting bank holding
companies 1,727 1,842 1,979
2003
Account or ratio (1, 2) 2003 2004 Q3
Balance sheet
Total assets 8,880,547 10,339,734 8,751,182
Loans 4,435,863 5,109,788 4,376,319
Securities and money market 3,302,240 3,799,443 3,190,602
Allowance for loan losses -73,835 -74,619 -73,926
Other 1,216,279 1,505,123 1,258,187
Total liabilities 8,177,563 9,450,580 8,063,922
Deposits 4,705,043 5,249,505 4,605,545
Borrowings 2,630,168 3,088,885 2,572,084
Other (3) 842,352 1,112,190 886,293
Total equity 702,984 889,154 687,260
Off-balance-sheet
Unused commitments to lend (4) 4,097,531 4,823,337 3,887,356
Securitizations outstanding (5) 298,348 353,978 290,328
Derivatives (notional
value, billions) (6) 72,914 89,115 69,452
Income statement
Net income (7) 107,949 113,483 28,177
Net interest income 257,537 284,745 66,120
Provisions for loan losses 33,075 28,788 8,246
Non-interest income 250,639 273,677 65,423
Non-interest expense 316,330 360,961 81,678
Security gains or losses 5,771 5,524 596
Ratios (percent)
Return on average equity 16.28 14.27 16.81
Return on average assets 1.26 1.16 1.29
Net interest margin (8) 3.51 3.39 3.53
Efficiency ratio (7) 61.72 63.67 62.43
Nonperforming assets to loans
and related assets 1.15 .82 1.23
Net charge-offs to average loans .84 .67 .86
Loans to deposits 94.28 97.34 95.02
Regulatory capital ratios
Tier 1 risk-based 9.58 9.41 9.53
Total risk-based 12.60 12.28 12.54
Leverage 6.87 6.64 6.77
Number of reporting bank holding
companies 2,134 2,254 2,120
2003 2004
Account or ratio (1, 2) Q4 Q1 Q2
Balance sheet
Total assets 8,880,547 9,358,869 9,712,116
Loans 4,435,863 4,615,601 4,803,609
Securities and money market 3,302,240 3,542,873 3,580,335
Allowance for loan losses -73,835 -76,629 -76,415
Other 1,216,279 1,277,024 1,404,588
Total liabilities 8,177,563 8,614,689 8,938,434
Deposits 4,705,043 4,847,914 5,005,099
Borrowings 2,630,168 2,902,949 2,955,221
Other (3) 842,352 863,826 978,114
Total equity 702,984 744,180 773,682
Off-balance-sheet
Unused commitments to lend (4) 4,097,531 4,350,963 4,420,773
Securitizations outstanding (5) 298,348 308,543 314,258
Derivatives (notional
value, billions) (6) 72,914 79,273 83,109
Income statement
Net income (7) 29,545 30,673 25,893
Net interest income 68,072 67,441 71,815
Provisions for loan losses 8,944 7,165 6,994
Non-interest income 69,991 67,724 73,698
Non-interest expense 86,323 83,237 101,051
Security gains or losses 655 1,980 1,011
Ratios (percent)
Return on average equity 17.25 17.05 13.52
Return on average assets 1.34 1.33 1.07
Net interest margin (8) 3.59 3.42 3.49
Efficiency ratio (7) 62.62 61.37 67.01
Nonperforming assets to loans
and related assets 1.15 1.09 .96
Net charge-offs to average loans .98 .72 .66
Loans to deposits 94.28 95.21 95.97
Regulatory capital ratios
Tier 1 risk-based 9.58 9.55 9.40
Total risk-based 12.60 12.47 12.26
Leverage 6.87 6.88 6.67
Number of reporting bank holding
companies 2,134 2,193 2,211
2004 2005
Account or ratio (1, 2) Q3 Q4 Q1
Balance sheet
Total assets 9,960,476 10,339,734 10,694,696
Loans 4,949,498 5,109,788 5,181,398
Securities and money market 3,628,275 3,799,443 4,047,682
Allowance for loan losses -75,917 -74,619 -73,364
Other 1,458,620 1,505,123 1,538,981
Total liabilities 9,107,551 9,450,580 9,803,120
Deposits 5,064,773 5,249,505 5,345,178
Borrowings 3,054,677 3,088,885 3,298,122
Other (3) 988,102 1,112,190 1,159,820
Total equity 852,925 889,154 891,576
Off-balance-sheet
Unused commitments to lend (4) 4,569,881 4,823,337 4,906,709
Securitizations outstanding (5) 313,436 353,978 366,430
Derivatives (notional
value, billions) (6) 84,723 89,115 92,601
Income statement
Net income (7) 29,097 28,910 32,902
Net interest income 72,426 71,485 72,764
Provisions for loan losses 7,489 7,843 6,574
Non-interest income 67,657 68,389 73,536
Non-interest expense 89,118 90,479 91,436
Security gains or losses 1,981 480 413
Ratios (percent)
Return on average equity 14.03 13.37 14.84
Return on average assets 1.18 1.12 1.24
Net interest margin (8) 3.46 3.28 3.18
Efficiency ratio (7) 63.34 64.51 60.79
Nonperforming assets to loans
and related assets .89 .82 .76
Net charge-offs to average loans .61 .71 .57
Loans to deposits 97.72 97.34 96.94
Regulatory capital ratios
Tier 1 risk-based 9.38 9.41 9.34
Total risk-based 12.22 12.28 12.21
Leverage 6.75 6.64 6.53
Number of reporting bank holding
companies 2,240 2,254 2,280
2. Financial characteristics of fifty large bank holding companies in
the United States
Millions of dollars except as noted, not seasonally adjusted
Account or ratio (2, 9) 2000 2001 2002
Balance sheet
Total assets 5,509,329 5,883,032 6,244,695
Loans 2,936,756 2,956,272 3,140,427
Securities and money market 1,849,393 2,053,128 2,282,894
Allowance for loan losses -49,224 -56,575 -61,180
Other 772,404 930,207 882,553
Total liabilities 5,098,769 5,434,925 5,758,200
Deposits 2,847,117 3,022,829 3,261,241
Borrowings 1,814,179 1,878,346 2,040,891
Other (3) 437,474 533,750 456,068
Total equity 410,560 448,107 486,496
Off-balance-sheet
Unused commitments to lend (4) 3,072,864 3,235,807 3,385,143
Securitizations outstanding (5) n.a. 271,825 289,905
Derivatives (notional value,
billions) (6) 43,544 48,159 57,768
Income statement
Net income (7) 60,388 52,530 68,308
Net interest income 153,455 166,652 183,796
Provisions for loan losses 24,013 35,786 39,416
Non-interest income 181,585 174,378 172,642
Non-interest expense 216,983 224,502 215,915
Security gains or losses -603 4,319 5,039
Ratios (percent)
Return on average equity 15.86 12.22 14.71
Return on average assets 1.14 .91 1.13
Net interest margin (8) 3.44 3.39 3.56
Efficiency ratio (7) 64.09 64.61 59.55
Nonperforming assets to loans
and related assets 1.17 1.57 1.56
Net charge-offs to average loans .73 1.01 1.21
Loans to deposits 103.15 97.80 96.30
Regulatory capital ratios
Tier 1 risk-based 8.20 8.22 8.51
Total risk-based 11.45 11.57 11.94
Leverage 6.43 6.24 6.25
2003
Account or ratio (2, 9) 2003 2004 Q3
Balance sheet
Total assets 6,903,426 7,940,887 6,826,533
Loans 3,387,295 3,929,885 3,353,598
Securities and money market 2,629,416 2,909,296 2,534,530
Allowance for loan losses -59,343 -59,484 -59,343
Other 946,058 1,161,189 997,748
Total liabilities 6,373,455 7,252,392 6,306,793
Deposits 3,512,801 3,948,310 3,436,283
Borrowings 2,358,645 2,713,445 2,314,486
Other (3) 502,010 590,637 556,024
Total equity 529,971 688,495 519,740
Off-balance-sheet
Unused commitments to lend (4) 3,800,219 4,485,138 3,595,070
Securitizations outstanding (5) 293,046 348,986 284,850
Derivatives (notional value,
billions) (6) 72,725 88,675 69,278
Income statement
Net income (7) 87,644 90,155 23,116
Net interest income 192,298 212,404 50,003
Provisions for loan losses 28,587 25,360 7,075
Non-interest income 195,668 213,283 51,693
Non-interest expense 229,336 264,069 60,279
Security gains or losses 5,186 4,628 478
Ratios (percent)
Return on average equity 17.49 14.73 18.24
Return on average assets 1.31 1.18 1.35
Net interest margin (8) 3.35 3.23 3.40
Efficiency ratio (7) 58.70 60.96 59.72
Nonperforming assets to loans
and related assets 1.22 .84 1.30
Net charge-offs to average loans .97 .80 1.00
Loans to deposits 96.43 99.53 97.59
Regulatory capital ratios
Tier 1 risk-based 8.80 8.57 8.81
Total risk-based 12.18 11.84 12.17
Leverage 6.36 6.16 6.29
2003 2004
Account or ratio (2, 9) Q4 Q1 Q2
Balance sheet
Total assets 6,903,426 7,348,179 7,539,139
Loans 3,387,295 3,548,140 3,683,748
Securities and money market 2,629,416 2,855,674 2,841,338
Allowance for loan losses -59,343 -61,854 -61,434
Other 946,058 1,006,218 1,075,487
Total liabilities 6,373,455 6,781,436 6,949,713
Deposits 3,512,801 3,629,595 3,759,012
Borrowings 2,358,645 2,614,743 2,642,532
Other (3) 502,010 537,099 548,170
Total equity 529,971 566,743 589,426
Off-balance-sheet
Unused commitments to lend (4) 3,800,219 4,047,520 4,104,527
Securitizations outstanding (5) 293,046 304,545 307,878
Derivatives (notional value,
billions) (6) 72,725 79,044 82,844
Income statement
Net income (7) 24,422 25,159 19,494
Net interest income 51,232 50,689 52,809
Provisions for loan losses 7,877 6,396 6,212
Non-interest income 55,543 53,732 56,466
Non-interest expense 63,226 61,045 74,500
Security gains or losses 632 1,610 697
Ratios (percent)
Return on average equity 18.85 18.31 13.34
Return on average assets 1.42 1.39 1.03
Net interest margin (8) 3.47 3.26 3.29
Efficiency ratio (7) 59.40 58.34 64.90
Nonperforming assets to loans
and related assets 1.22 1.14 1.00
Net charge-offs to average loans 1.13 .88 .78
Loans to deposits 96.43 97.76 98.00
Regulatory capital ratios
Tier 1 risk-based 8.80 8.77 8.63
Total risk-based 12.18 12.05 11.88
Leverage 6.36 6.36 6.14
2004 2005
Account or ratio (2, 9) Q3 Q4 Q1
Balance sheet
Total assets 7,741,040 7,940,887 8,206,462
Loans 3,791,894 3,929,885 3,979,933
Securities and money market 2,880,574 2,909,296 3,094,734
Allowance for loan losses -60,811 -59,484 -58,123
Other 1,129,382 1,161,189 1,189,918
Total liabilities 7,084,305 7,252,392 7,513,951
Deposits 3,793,285 3,948,310 4,019,042
Borrowings 2,742,512 2,713,445 2,898,498
Other (3) 548,509 590,637 596,411
Total equity 656,735 688,495 692,511
Off-balance-sheet
Unused commitments to lend (4) 4,236,822 4,485,138 4,557,059
Securitizations outstanding (5) 307,325 348,986 361,524
Derivatives (notional value,
billions) (6) 84,463 88,675 92,140
Income statement
Net income (7) 22,998 23,595 26,392
Net interest income 54,067 53,262 53,462
Provisions for loan losses 6,704 6,752 5,769
Non-interest income 51,882 54,995 57,844
Non-interest expense 64,388 67,059 66,332
Security gains or losses 1,723 524 221
Ratios (percent)
Return on average equity 14.33 14.05 15.30
Return on average assets 1.19 1.19 1.29
Net interest margin (8) 3.31 3.16 3.03
Efficiency ratio (7) 60.29 61.89 57.57
Nonperforming assets to loans
and related assets .91 .84 .78
Net charge-offs to average loans .72 .83 .69
Loans to deposits 99.96 99.53 99.03
Regulatory capital ratios
Tier 1 risk-based 8.60 8.57 8.52
Total risk-based 11.82 11.84 11.79
Leverage 6.22 6.16 6.09
3. Financial characteristics of all other reporting bank
holding companies in the United States
Millions of dollars except as noted, not seasonally adjusted
Account (1, 10) 2000 2001 2002
Balance sheet
Total assets 1,178,273 1,290,686 1,414,391
Loans 767,464 822,127 885,466
Securities and money market 319,514 359,293 408,750
Allowance for loan losses -10,884 -11,894 -13,181
Other 102,179 121,160 133,355
Total liabilities 1,076,381 1,174,315 1,283,635
Deposits 912,804 988,825 1,078,022
Borrowings 142,782 159,804 174,398
Other (3) 20,794 25,687 31,214
Total equity 101,892 116,371 130,756
Off-balance-sheet
Unused commitments to lend (4) 215,583 235,764 253,620
Securitizations outstanding (5) n.a. 4,567 4,358
Derivatives (notional value,
billions) (6) 47 87 86
Income statement
Net income (7) 12,485 13,841 16,634
Net interest income 43,509 46,215 51,029
Provisions for loan losses 3,420 4,438 5,059
Non-interest income 16,181 22,434 24,591
Non-interest expense 38,118 44,389 46,957
Security gains or losses -9 729 639
Ratios (percent) 13.09 12.53 13.53
Return on average equity 1.12 1.13 1.25
Return on average assets 4.31 4.20 4.26
Net interest margin (8) 62.24 63.80 61.12
Efficiency ratio (7)
Nonperforming assets to loans .77 .97 1.02
and related assets .32 .43 .46
Net charge-offs to average loans 84.08 83.14 82.14
Loans to deposits
Regulatory capital ratios 11.83 12.27 12.50
Tier 1 risk-based 13.29 13.83 14.11
Total risk-based 8.52 8.81 8.93
Leverage
Number of other reporting bank
holding companies 1,652 1,779 1,916
2003
Account (1, 10) 2003 2004 Q3
Balance sheet
Total assets 1,549,979 1,709,085 1,517,067
Loans 969,249 1,097,601 945,603
Securities and money market 449,241 474,035 443,645
Allowance for loan losses -14,075 -14,735 -14,098
Other 145,565 152,184 141,917
Total liabilities 1,407,777 1,550,877 1,377,795
Deposits 1,169,677 1,281,283 1,147,564
Borrowings 203,755 228,929 196,562
Other (3) 34,345 40,665 33,669
Total equity 142,202 158,208 139,272
Off-balance-sheet
Unused commitments to lend (4) 284,399 324,828 278,562
Securitizations outstanding (5) 4,159 2,877 4,400
Derivatives (notional value,
billions) (6) 92 140 97
Income statement
Net income (7) 17,904 19,663 4,560
Net interest income 53,139 57,389 13,166
Provisions for loan losses 4,271 3,196 1,051
Non-interest income 27,754 26,654 7,009
Non-interest expense 51,486 53,586 12,711
Security gains or losses 993 559 136
Ratios (percent) 13.10 13.23 13.35
Return on average equity 1.21 1.21 1.22
Return on average assets 4.00 3.93 3.92
Net interest margin (8) 62.94 62.67 62.67
Efficiency ratio (7)
Nonperforming assets to loans .98 .76 1.03
and related assets .39 .25 .35
Net charge-offs to average loans 82.86 85.66 82.40
Loans to deposits
Regulatory capital ratios 12.59 12.45 12.59
Tier 1 risk-based 14.30 14.09 14.29
Total risk-based 9.06 9.16 8.99
Leverage
Number of other reporting bank
holding companies 2,071 2,199 2,057
2003 2004
Account (1, 10) Q4 Q1 Q2
Balance sheet
Total assets 1,549,979 1,590,705 1,636,305
Loans 969,249 996,874 1,034,675
Securities and money market 449,241 465,449 463,381
Allowance for loan losses -14,075 -14,383 -14,627
Other 145,565 142,765 152,875
Total liabilities 1,407,777 1,444,384 1,490,587
Deposits 1,169,677 1,202,669 1,228,499
Borrowings 203,755 201,409 223,675
Other (3) 34,345 40,306 38,413
Total equity 142,202 146,321 145,718
Off-balance-sheet
Unused commitments to lend (4) 284,399 290,060 301,229
Securitizations outstanding (5) 4,159 2,875 3,000
Derivatives (notional value,
billions) (6) 92 118 109
Income statement
Net income (7) 4,220 4,826 4,847
Net interest income 13,639 13,867 14,014
Provisions for loan losses 1,127 802 786
Non-interest income 6,754 6,768 6,707
Non-interest expense 13,440 13,160 13,143
Security gains or losses 187 310 111
Ratios (percent) 12.06 13.52 13.29
Return on average equity 1.10 1.24 1.21
Return on average assets 3.97 3.97 3.89
Net interest margin (8) 65.72 63.02 62.80
Efficiency ratio (7)
Nonperforming assets to loans .98 .96 .87
and related assets .51 .23 .25
Net charge-offs to average loans 82.86 82.89 84.22
Loans to deposits
Regulatory capital ratios 12.59 12.62 12.48
Tier 1 risk-based 14.30 14.31 14.15
Total risk-based 9.06 9.12 9.10
Leverage
Number of other reporting bank
holding companies 2,071 2,131 2,149
2004 2005
Account (1, 10) Q3 Q4 Q1
Balance sheet
Total assets 1,674,216 1,709,085 1,722,328
Loans 1,069,966 1,097,601 1,119,845
Securities and money market 465,577 474,035 460,222
Allowance for loan losses -14,799 -14,735 -14,805
Other 153,471 152,184 157,066
Total liabilities 1,519,327 1,550,877 1,565,804
Deposits 1,253,522 1,281,283 1,306,451
Borrowings 224,912 228,929 217,206
Other (3) 40,893 40,665 42,147
Total equity 154,889 158,208 156,525
Off-balance-sheet
Unused commitments to lend (4) 315,742 324,828 335,250
Securitizations outstanding (5) 2,757 2,877 2,792
Derivatives (notional value,
billions) (6) 117 140 73
Income statement
Net income (7) 5,042 4,948 5,233
Net interest income 14,539 14,968 15,206
Provisions for loan losses 798 810 675
Non-interest income 6,616 6,562 6,679
Non-interest expense 13,319 13,964 13,941
Security gains or losses 134 5 100
Ratios (percent) 13.45 12.71 13.38
Return on average equity 1.22 1.17 1.23
Return on average assets 3.92 3.95 3.99
Net interest margin (8) 62.91 63.88 62.56
Efficiency ratio (7)
Nonperforming assets to loans .84 .76 .73
and related assets .23 .31 .17
Net charge-offs to average loans 85.36 85.66 85.72
Loans to deposits
Regulatory capital ratios 12.46 12.45 12.30
Tier 1 risk-based 14.11 14.09 13.92
Total risk-based 9.15 9.16 9.13
Leverage
Number of other reporting bank
holding companies 2,182 2,199 2,225
4. Nonfinancial characteristics of all reporting bank holding companies
in the United States
Millions of dollars except as noted, not seasonally adjusted
Account 2000 2001 2002
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 300 389 435
Total assets 4,497,781 5,440,842 5,921,277
Foreign-owned (13)
Number 9 10 11
Total assets 502,506 621,442 616,254
Total U.S. commercial bank
assets (14) 6,129,534 6,415,909 6,897,447
By ownership
Reporting bank holding companies 5,657,210 5,942,575 6,429,738
Other bank holding companies 229,274 230,464 227,017
Independent banks 243,050 242,870 240,692
Assets associated with nonbanking
activities (12, 15)
Insurance n.a. 426,462 372,405
Securities broker-dealers n.a. n.a. 630,851
Thrift institutions (16) 102,218 91,170 107,422
Foreign nonbank institutions 132,629 138,977 145,344
Other nonbank institutions 1,234,714 1,674,267 561,712
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance n.a. 143 96
Securities broker-dealers n.a. n.a. 47
Thrift institutions 50 38 32
Foreign nonbank institutions 25 32 37
Other nonbank institutions 633 743 880
Foreign-owned bank holding
companies (13)
Number 21 23 26
Total assets 636,669 764,411 762,901
Employees of reporting bank
holding companies (full-time
equivalent) 1,859,930 1,985,981 1,992,559
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 5,509,329 5,883,032 6,244,695
Fifty large as of reporting date 5,319,129 5,732,621 6,032,000
Percent of all reporting
bank holding companies 78.90 76.60 75.50
2003
Account 2003 2004 Q3
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 452 474 449
Total assets 6,610,314 7,462,508 6,451,785
Foreign-owned (13)
Number 12 14 11
Total assets 710,441 1,376,333 729,244
Total U.S. commercial bank
assets (14) 7,397,818 8,207,091 7,293,920
By ownership
Reporting bank holding companies 6,940,992 7,785,428 6,842,727
Other bank holding companies 219,222 209,181 217,035
Independent banks 237,604 212,482 234,157
Assets associated with nonbanking
activities (12, 15)
Insurance 437,503 579,111 419,575
Securities broker-dealers 656,775 719,242 686,049
Thrift institutions (16) 133,056 191,201 143,578
Foreign nonbank institutions 170,600 216,758 162,789
Other nonbank institutions 686,367 1,128,184 736,515
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance 102 97 102
Securities broker-dealers 50 43 46
Thrift institutions 27 27 29
Foreign nonbank institutions 41 39 39
Other nonbank institutions 1,042 1,026 992
Foreign-owned bank holding
companies (13)
Number 27 29 27
Total assets 934,085 1,537,208 947,253
Employees of reporting bank
holding companies (full-time
equivalent) 2,034,358 2,162,118 2,031,029
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 6,903,426 7,940,887 6,826,533
Fifty large as of reporting date 6,666,488 7,940,955 6,602,255
Percent of all reporting
bank holding companies 75.10 76.80 75.40
2003 2004
Account Q4 Q1 Q2
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 452 465 471
Total assets 6,610,314 6,856,173 7,082,367
Foreign-owned (13)
Number 12 13 14
Total assets 710,441 994,672 1,117,266
Total U.S. commercial bank
assets (14) 7,397,818 7,614,504 7,850,644
By ownership
Reporting bank holding companies 6,940,992 7,165,651 7,409,186
Other bank holding companies 219,222 213,193 211,725
Independent banks 237,604 235,660 229,733
Assets associated with nonbanking
activities (12, 15)
Insurance 437,503 468,168 583,073
Securities broker-dealers 656,775 713,794 710,485
Thrift institutions (16) 133,056 139,713 156,033
Foreign nonbank institutions 170,600 184,334 226,064
Other nonbank institutions 686,367 853,276 870,833
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance 102 100 101
Securities broker-dealers 50 49 48
Thrift institutions 27 29 27
Foreign nonbank institutions 41 41 40
Other nonbank institutions 1,042 1,010 1,030
Foreign-owned bank holding
companies (13)
Number 27 27 28
Total assets 934,085 1,145,476 1,271,378
Employees of reporting bank
holding companies (full-time
equivalent) 2,034,358 2,099,126 2,085,733
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 6,903,426 7,348,179 7,539,139
Fifty large as of reporting date 6,666,488 7,045,844 7,385,384
Percent of all reporting
bank holding companies 75.10 75.30 76.00
2004 2005
Account Q3 Q4 Q1
Bank holding companies that
qualify as financial holding
companies (11, 12)
Domestic
Number 477 474 471
Total assets 7,279,239 7,462,508 7,635,666
Foreign-owned (13)
Number 14 14 15
Total assets 1,193,984 1,376,333 1,526,167
Total U.S. commercial bank
assets (14) 8,040,967 8,207,091 8,400,147
By ownership
Reporting bank holding companies 7,599,384 7,785,428 7,988,330
Other bank holding companies 208,696 209,181 204,799
Independent banks 232,887 212,482 207,019
Assets associated with nonbanking
activities (12, 15)
Insurance 579,785 579,111 574,466
Securities broker-dealers 756,869 719,242 933,479
Thrift institutions (16) 162,396 191,201 193,647
Foreign nonbank institutions 230,569 216,758 219,828
Other nonbank institutions 887,848 1,128,184 1,044,441
Number of bank holding companies
engaged in nonbanking
activities (12, 15)
Insurance 98 97 97
Securities broker-dealers 45 43 41
Thrift institutions 25 27 26
Foreign nonbank institutions 40 39 38
Other nonbank institutions 1,050 1,026 929
Foreign-owned bank holding
companies (13)
Number 28 29 29
Total assets 1,349,900 1,537,208 1,690,118
Employees of reporting bank
holding companies (full-time
equivalent) 2,133,267 2,162,118 2,165,347
Assets of fifty large bank holding
companies (9, 17)
Fixed panel (from table 2) 7,741,040 7,940,887 8,206,462
Fifty large as of reporting date 7,644,504 7,940,955 8,206,462
Percent of all reporting
bank holding companies 76.70 76.80 76.70
Note: All data are as of the most recent period shown. The historical
figures may not match those in earlier versions of this table because
of mergers, significant acquisitions or divestitures, or revisions or
restatements to bank holding company financial reports. Data for the
most recent period may not include all late-filing institutions.
(1.) Covers top-tier bank holding companies except (1) those with
consolidated assets of less than $150 million and with only one
subsidiary bank and (2) multibank holding companies with consolidated
assets of less than $150 million, with no debt outstanding to the
general public and not engaged in certain nonbanking activities.
(2.) Data for all reporting bank holding companies and the fifty large
bank holding companies reflect merger adjustments to the fifty large
bank holding companies. Merger adjustments account for mergers,
acquisitions, other business combinations and large divestitures that
occurred during the time period covered in the tables so that the
historical information on each of the fifty underlying institutions
depicts, to the greatest extent possible, the institutions as they
exist in the most recent period. In general, adjustments for mergers
among bank holding companies reflect the combination of historical data
from predecessor bank holding companies.
The data for the fifty large bank holding companies have also been
adjusted as necessary to match the historical figures in each company's
most recently available financial statement.
In general, the data are not adjusted for changes in generally accepted
accounting principles.
(3.) Includes minority interests in consolidated subsidiaries.
(4.) Includes credit card lines of credit as well as commercial lines
of credit.
(5.) Includes loans sold to securitization vehicles in which bank
holding companies retain some interest, whether through recourse or
seller-provided credit enhancements or by servicing the underlying
assets. Securitization data were first collected on the FR Y-9C report
for June 2001.
(6.) The notional value of a derivative is the reference amount of an
asset on which an interest rate or price differential is calculated.
The total notional value of a bank holding company's derivatives
holdings is the sum of the notional values of each derivative contract
regardless of whether the bank holding company is a payor or recipient
of payments under the contract. The actual cash flows and fair market
values associated with these derivative contracts are generally only a
small fraction of the contract's notional value.
(7.) Income statement subtotals for all reporting bank holding
companies and the fifty large bank holding companies exclude
extraordinary items, the cumulative effects of changes in accounting
principles, and discontinued operations at the fifty large institutions
and therefore will not sum to Net income. The efficiency ratio is
calculated excluding nonrecurring income and expenses.
(8.) Calculated on a fully-taxable-equivalent basis.
(9.) In general, the fifty large bank holding companies are the fifty
largest bank holding companies as measured by total consolidated assets
for the latest period shown. Excludes a few large bank holding
companies whose commercial banking operations account for only a small
portion of assets and earnings.
(10.) Excludes predecessor bank holding companies that were
subsequently merged into other bank holding companies in the panel of
fifty large bank holding companies. Also excludes those bank holding
companies excluded from the panel of fifty large bank holding companies
because commercial banking operations represent only a small part of
their consolidated operations.
(11.) Exclude qualifying institutions that are not reporting bank
holding companies.
(12.) No data related to financial holding companies and only some data
on nonbanking activities were collected on the FR Y-9C report before
implementation of the Gramm- Leach-Bliley Act in 2000.
(13.) A bank holding company is considered "foreign-owned" if it is
majority-owned by a foreign entity. Data for foreign-owned companies do
not include data for branches and agencies of foreign banks operating
in the United States.
(14.) Total assets of insured commercial banks in the United States as
reported in the commercial bank Call Report (FFIEC 031 or 041, Reports
of Condition and Income). Excludes data for a small number of
commercial banks owned by other commercial banks that file separate
call reports yet are also covered by the reports filed by their parent
banks. Also excludes data for mutual savings banks.
(15.) Data for thrift, foreign nonbank, and other nonbank institutions
are total assets of each type of subsidiary as reported in the FR Y-9LP
report. Data cover those subsidiaries in which the top-tier bank
holding company directly or indirectly owns or controls more than 50
percent of the outstanding voting stock and that has been consolidated
using generally accepted accounting principles. Data for securities
broker-dealers are net assets (that is, total assets, excluding
intercompany transactions) of broker-dealer subsidiaries engaged in
activities pursuant to the Gramm-Leach-Bliley Act, as reported on
schedule HC-M of the FR Y-9C report. Data for insurance activities are
all insurance-related assets held by the bank holding company as
reported on schedule HC-I of the FR Y-9C report.
Beginning in 2002:Q1, insurance totals exclude intercompany
transactions and subsidiaries engaged in credit-related insurance or
those engaged principally in insurance agency activities. Beginning in
2002:Q2, insurance totals include only newly authorized insurance
activities under the Gramm-Leach-Bliley Act.
(16.) Aggregate assets of thrift subsidiaries were affected
significantly by the conversion of Charter One's thrift subsidiary
(with assets of $37 billion) to a commercial bank in the second quarter
of 2002 and the acquisition by Citigroup of Golden State Bancorp (a
thrift institution with assets of $55 billion) in the fourth quarter of
2002.
(17.) Changes over time in the total assets of the time-varying panel
of fifty large bank holding companies are attributable to (1) changes
in the companies that make up the panel and (2) to a small extent,
restatements of financial reports between periods.
n.a. Not available
Source: Federal Reserve Reports FR Y-9C and FR Y-9LP, Federal Reserve
National Information Center, and published financial reports.
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