III - Profitability

FINANCE COMPANIES

PROFITABILITY

BUSINESS AND CONSUMER FINANCE COMPANIES' RETURN ON EQUITY, 2002-2006 (1)

	Business finance companies' return on average equity (2)		Consumer finance companies' return on average equity (3)
Year	Median	Average	Median	Average
2002	8.88%	13.07%	21.51%	29.51%
2003	7.92	4.63	17.05	25.43
2004	10.18	13.93	19.49	17.36
2005	10.19	9.23	17.04	-4.45
2006	10.68	11.82	16.51	2.87
(1) Net income as a percentage of average equity. (2) Consists of 35 publicly traded commercial finance companies including niche, diversified commercial and equipment finance companies. Does not include government-sponsored enterprises (GSEs), finance REITs, mortgage or real estate companies. (3) Consists of 36 publicly traded consumer finance companies including auto finance, credit card, niche and diversified consumer companies and pawn shops. Does not include GSEs, finance REITs, or mortgage or real estate companies. Source: SNL Financial LC.

NONDEPOSITORY CREDIT INTERMEDIATION INDUSTRY REVENUES, 1997 AND 2002 (1)

($000)

	1997	2002
Nondepository credit intermediation	$229,213,945	$384,011,947
Credit card issuing	24,503,307	34,505,552
Sales financing	78,133,239	121,489,478
Other nondepository credit intermediation	126,577,399	228,016,917
(1) As defined by the U.S. Census Bureau, includes firms primarily engaged in extending credit or lending funds raised by credit market borrowing. The group includes credit card issuing firms, sales financing firms, and establishments that make cash loans or extend credit through credit instruments other than credit cards and sales finance agreements. All data based on the 1997 North American Industrial Classification System (NAICS). Note: Latest data available. Based on surveys conducted every five years. Source: U.S. Department of Commerce, U.S. Census Bureau.