Gains from sales of securities and lower loan loss previsions helped bring higher profits to large Fifth District commercial banks in 1986. At the same time, small- and medium-sized bank profits fell slightly in the District from the previous year. As in the past few years, Fifth District banks...

Reduced provisions for loan losses in 1988 boosted bank profits in the Fifth District and nationwide. Profit ratios also may have been influenced somewhat by subsidiary banks’ payment of management fees to their holding companies.