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f f i . 'n o N BOARD OF GOVERNORS OF THE FEDERAL RESERVE SISTEM (For Immediate Release) E .$ February 10, 19.58 , i FftKEf MEMBER BANK EARNINGS, 1957 Net current earnings before income taxes amounted to $2,51*2 million in 1957, $li*3 million more than in 1956, according to inary tabulation of member bank earnings. A decline in net losses and charge-offs was offset by an increase in income taxes, and net profits after taxes increased $li*2 million over 1956. The ratio of net profits to average total capital accounts increased from 7*7 to 8.3 per cent. Gross current earnings were $678 million higher than in 1956, but they were largely offset by an increase of $53l* million in current expenses. Earnings on loans rose $1*61* million, with average holdings of loans increasing $1**8 billion and the rate of return from 5*02 to 5,30 per;cent* Earnings on United States Government securities in creased $61 millionj a decline in holdings of $1.5 billion was more than offset by a rise in the average rate of return from 2.31 to 2.52 per cent. Other earnings rose $152 million. The net of losses and charge-offs, recoveries, profits, etc., was a loss of $1*79 million, compared with $651* million in 1956. Profits before income taxes were $318 million higher, and taxes on net income increased $1?6 million. Dividends amounted to $601* million or 52 per cent of net profits; this represented a return on average total capital accounts of 1*.3 per cent, compared with l*.l per cent in 1956. Retained earnings were $565 million, an increase.of $85 million over 1956. (Over) J"1 MEMBER BARK EARRINGS, BY CLASS OF BANK, 1957 AND 1956 Item (In millions of dollars. 1957 figures preliminary) Central Reserve City Banks All Chicago New York Member Banks 1956 1956 1957 1957 1 1956 1957 2,402 143 51 2,660 426 1,689 546 136 123 1,664 478 137 119 31 75 16 880 132 207 2,065 1,744 442 894 718 1,169 604 243 248 172 56 594 - 536 2,398 544 175 226 654 4,190 1 ,401; 6,078 1,101 3,725 1,252 Expenses 4,2l4 3,680 Net current earnings before income taxes 2,542 Recoveries, profits, Mid transfers from valuation reserves^/ Losses, charge-offs, Mid transfers to valuation reserves^/ Taxes on net income Net profits Cash dividends declared Ratios (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. Government securities Average return on loans 1,014 133 633 274 46 Earnings On U. S. Government securities On loans!/ All other Profits before income taxes 6,756 1,162 18.0 “ 1 9 5 7 1 1956 2,685 553 527 2,419 514 1,438 467 i »1j4 i 1,820 1,579 996 961 865 840 14 66 88 62 50 60 51 212 326 250 296 346 93 82 850 723 677 593 209 157 4l 30 385 302 259 229 1,027 234 189 53 52 464 421 418 364 547 152 133 24 23 242 223 186 168 18.7 8.2 2.19 4.l4 19.2 19.T 8.6 2.31 5.02 7.9 2.55 5.88 1,137 137 725 275 20.6 17.0 7.9 6.7 . 7.7 8.3 2.36 2.22 2.31 2.52 4.56 5.02 5.30 4.15 l/ Includes charges on loans other than interest; these charges are estimated for 1957* 2/ Does not include recoveries credited to valuation reserves. Does not include losses charged to valuation reserves. Reserve City Banks 1957 1956 18 .1 18.2 7.8 2.47 4.52 (Over) 49 8.9' 2.53 5.29 404 1,511 487 1,605 17.0 7.4 2.36 5.64
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