Financial Institutions’ Profit Growth Doubles
U.S. banks doubled their rate of profit growth in 2002, relying on low interest rates and a strong housing market to weather the slow economy, a banking regulator said.
Net income for banks supervised by the Office of the Comptroller of the Currency rose 28% in 2002, up from a 14% increase the previous year, the OCC said.
Return on equity increased to 15.85%, the OCC said in a report on the condition of the banking industry. Return on assets, a measure of profitability derived by dividing net income by total assets, rose to a record 1.51%.