Net income of the 12 Federal Reserve banks rose nearly 27% to $27.6 billion in 1998, the Federal Reserve Board reported Thursday.

Gains on assets denominated in foreign currencies added $1.92 billion to income last year. By contrast, in 1997 the Fed lost $2.58 billion on such assets.

Operating income increased 4.6% to $28.1 billion last year, the Fed said.

Federal Reserve Bank earnings come mainly from interest on U.S. government securities. Income earned from providing financial services totaled $817.1 million, up from $790 million in 1997.

Operating expenses at the 12 banks fell slightly, to $1.785 billion.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.