Income and Expenses of Eighth District Member Banks
Net income of 429 Federal Reserve member banks in the Eighth District increased 10 percent in 1974, compared to a 13 percent increase in 1973. Although total operating income jumped 29 percent over that of 1973, total operating expenses increased even more rapidly, paced by a 47 percent rise in interest expense and a 68 percent increase in the provision for loan losses. Eighth District member banks fared better, on average, than those in other districts; the total net income of all member banks in the nation increased by about 7 percent in 1974. This increase reflects a marked slowdown from the rapid growth experienced in 1973.