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Show Banks In Twelth District Report Increase In Wet Profit Net profits after taxes, report by the fifteen largest banks in the Twelfth District, were 5.5 percent higher in the first half of 1949 than in the first half of 1948, the Federal Reserve Bank San Franciso announced today. Net current earnings of the fifteen banks rose 11 percent, with the smaller increase in net profits accountable mainly to 21.5 percent greater tax payments. pay-ments. Earning on loans were at a new half-year high, despite a declining trtend from January to June in total loans outstand ing. Interest on Government securities was off 5.5 percent as a result of reduced average holdings. Increases were shown in earnings on other than Government Gov-ernment securities, and in the amounts collected from deposi-ors deposi-ors in service charges. Expenses in all classifications classifica-tions continued to mount, although al-though at a much slower rate than in-the previous two years Extreme differences in experience exper-ience were observed among the fifteen reporting banks, in many cases running counter to the over-all trend. Earnings on loans was the only item for which all banks reported increases. in-creases. All but one bank reported report-ed increases in total earning and all but to experienced increases in-creases in total expenses. Despite the favorable showing, show-ing, only four banks actttally reported increases in net profits after taxes, out of only eight whose net current earnings is-creased. is-creased. Variations in these latter items among all the reporting re-porting banks ranged from an increase of more than 50 percent to a decline of nearly 30 percent. The Federal Reserve Bank will publish a detailed survey of changes in individual items, together with a consolidated profit-and-loss statement, in the forthcoming issue of its Monthly Review. |