For the fourth quarter, commercial bank profits fell 31 percent, to $1.39 billion.

This move is expected to increase bank profits by about $400 million a year, analysts said.

And growing competition from other financial service companies has carved deeply into bank profits.

Citigroup's private bank profits of $124 million were up 4 percent.

The move is expected to reduce bank profits in the fourth quarter.

When the bank profits through business ventures, the members profit.

They said that bank profits would also be hurt by weak loan demand.

The only thing that rose more than bank profits was unemployment.

But the bright side for the chancellor is that there should be higher bank profits to tax, especially if interest rates fall.

Others expect the plan to hurt bank profits by pushing banks into writing off more of their loans.