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i • tr B U S £ FCON .v^iiftiAlTFREE UBRASV i I . AJu >.i lv56 | BALTIMORE, MD. BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM E.5 (For Immediate Release) ~~~ August 9, 1956 MEMBER BANK EARNINGS, FIRST HALF OF 1956 Net profits after taxes for the first six months of 1956 were $5L6 million, $62 million higher than for the first half of 1955, according to pre liminary tabulations of member bank earnings reports. On an annual basis, the ratio of net profits to average total capital accounts increased from 7»9 per cent to 8.L per cent. An increase of $372 million in gross earnings was largely offset by greater expenses, charge-offs, and provisions for taxes. primarily from increased earnings on loans. The larger earnings were During the first half of 1956, both the average volume of loan holdings and the average rate of return were higher. In contrast, average holdings of United States Government obligations declined but due to a higher rate of return, earnings thereon were practically unchanged. The net of losses, recoveries, profits, etc., was a loss of fl61j million approximately twice that of the first six months of 1955. Taxes on net income increased |33 million. Cash dividends declared amounted to $253 million, $21 million higher than for the first half of 1955. This was a U6 per cent distribution of net pro fits after taxes and an approximate annual yield of 3*9 per cent on average total capital accounts, compared with i|6 per cent and 3*8 per cent, respectively, in the first half of 1955. (Over) MEMBER B A M EARNINGS, BY CLASS OF BANK, FIRST AND SECOND HALVES OF 1955 AND FIRST HALF OF 1956 (in millions of dollars; first half 1956 preliminary) Central Reserve City Banks All Member Banks New York Claicago First Second First First Second First First Second First Half Half Half Half Half Half Half Half Half 1956 1956 1956 1955 1955 1955 1955 1955 1955 Item Earnings: On U. S. Government securities On loans i f All other -2i55§_ 2,788 556 563 1,447 1,636 552 589 Reserve City Banks First Half 1955 Second Half 1955 First Half 1956 First Half 1955 Second Half 1955 First Half 1956 1,151 204 717 230 1,039 1,133 252 1,173 662 2,927 4l4 452 486 100 109 117 1,001 1,094 553 1,773 82 221 111 74 263 ll6 68 27 57 25 26 120 29 48 23 67 24 211 577 213 209 655 230 601 298 662 256 691 219 226 377 746 387 743 431 233 601 206 1,556 999 1,709 1,079 1,753 1,174 225 246 206 259 227 55 45 52 60 58 6l4 387 660 189 433 692 459 r/ 98 115 88 r /26 22 27 5 8 6 32 58 33 35 27 22 r/l82 ” 915 431 761 260 252 r/4l "174 82 1,010 464 6 43 19 20 40 15 20 43 19 64 355 157 176 316 121 91 401 175 70 ... 343 175 154 260 71 365 167 Net profits 484 501 Cash dividends declared 232 269 Expenses Net current earnings before income taxes Recoveries, profits, and transfers from valuation reserves 2/ Losses, charge-off8, and transfers to valuation reserves 3 / Profits before, income taxes Taxes on net income Ratios - annual basis (in per cent): Net current earnings before income taxes to average total capital accounts Net profits to average total capital accounts Average return on U. S. Govt, securities Average return on loans 3T/ cuari ■rr""1 ■• 16.2 7-9 2.01 4.68 432 17.0 7-9 87 80 145 52 54 201 103 546 93 93 98 25 25 24 198 194 225 168 189 199 253 58 66 63 13 8 14 94 108 102 67 87 74 13.8 6.8 1.95 3.52 15.1 6.8 2.09 3.79 16.3 7.0 2.19 3.99 16.9 18.3 18.0 2.18 8.4 2.29 4.85 4.89 <F,„»i. . ..■— .. . l/ Includes charges on loans other than interest; these charges are estimated for 2/ Does not include recoveries credited to valuation reserves. 3/ Does not Include losses charged to valuation reserves. 56 Country Banks 1956. (Over) 15.0 8.2 2.01 3.55 8.0 2.10 3.80 7.7 2.19 4.01 18.9 17.6 9.0 8.5 2.03 1 2.16 4.69 4.83 19.2 9.5 2.28 4.89 16.4 7.3 2.02 5.48 16.4 8.0 2.23 5.63 17.8 8.2 2.34 5.54
@FedFRASER