Banks' operating profits increased while net interest income as a proportion of banks' total income declined

Abstract

Banks' total operating profits increased in January September 2004. Lower interest rates and narrower interest rate margins led to a decline in net interest income, in both absolute terms and as a proportion of total income. The concurrent increase in net fee income is thus the main factor behind the improvement in banks' operating profits. Cost control and low loan losses also contributed to an improvement in results.