Thus, banks' provisions for loan losses were only 0.25 percent of assets for the first half of 2005, well below the 0.70 percent for 2002. Net chargeoffs so far in 2005 amounted to less than 0.50 percent of loans, really a remarkably low figure.
Returning to the present, problem assets at the end of June 2005 were also low, only 0.56 percent of loans, after having peaked at 1.23 percent in 2002. Operating efficiency has also improved and contributed to strong profits. Consolidation and bank investments in new technologies are partially responsible for this improved efficiency.