Federal Reserve Bulletin

Profits and Balance Sheet Developments at U.S. Commercial Banks in 2005

Figure 22. Non-interest expense and selected components as a proportion of revenue, 1990-2005. Data plotted as curves. Two panels. In the top panel, total non-interest expense starts in 1990 at 68 percent, then, except for upward moves of 1-2 percentage points in 1990-91 and 1997-98, it moves down to reach about 58 percent in 2002; it then rises to reach 60 percent in 2004 and declines to about 59 percent in 2005. In the bottom panel, the expense for premises and fixed assets starts in 1990 at about 10 percent and then moves down gradually over the period to reach about 8 percent in 2005. The expense for salaries and benefits starts in 1990 at about 30 percent, moves down gradually to reach about 25 percent in 2001, and then rises to reach about 27 percent in 2005. The series for other non-interest expenses starts in 1990 at about 28 percent, rises in 1991 to about 30 percent, then generally declines to about 25 percent in 2005.

Note: The data are annual.  Return to article