The profits made by commercial banks shrink

20 Jun 2010 • by Natalie Aster

According to a report released by Barnes Reports and entitled Worldwide Commercial Banking Industry, over the recent years a profit shrinking trend has been seen in the following countries: Brazil, France, Germany and Japan. In the coming years, Russian commercial banks will demonstrate insignificant profit drop. Stable gains are generated by commercial financial institutions of the United States, China and India.

Largest revenues are made by US commercial banks whose profits steadily grow by 3% a year: $539.8bn in 2004, $562bn in 2005, $601.9bn in 2007 (forecasted) and $622.18 in 2008 (forecasted).

Despite slight profitability drop in 2006, Japanese banks are second only to American counterparts with respect to profitability: their profits account for 61.3% of revenues generated by US commercial banking sector. Profit breakdown is as follows: $368.8bn in 2005, $362.8bn in 2006, $368.8bn in 2007 (forecasted), $370.1bn in 2008 (forecasted).

Germany follows the suit by exhibiting profit slump, but holds the third position with 28.8% of the US market. Profit breakdown is as follows: $173.008bn in 2004, $172.3bn in 2006, $173.3bn in 2007 (forecasted), $173.005bn in 2008 (forecasted).

The annual report Worldwide Commercial Banking Industry analyses the state of the market for banking services in 45 countries. This report also provides the most current and accurate information on sales, employment, number of establishments in the sector; it gives sector’s development forecasts and its 5-year trend analysis.