The dividends have increased the total "real" return on average equity to the double, about 3.2%.

But some advisers and lawyers suggested that the average equities holding could well have risen in the years since, as the stock market has boomed.

Analysts also cite Valley National's annualized returns of 2.04 percent on average assets and 21.7 percent on average equity.

As measured by several analysts, Merrill's return on average equity between 1985 and 1989 lagged substantially behind its peers.

The return on average equity has jumped to 12.04 percent, from 10.23 percent, while earnings per share have risen to $7.08 last year, from $4.45.

Return on average equity was 29 percent.

Table 5.11 Profitability of US investment banks active in eurobond market (return on average equity)

The return on average equity for the subsidiary was 28.8 percent, compared with 28.9 percent in the 1989 quarter.

The return on average total assets and return on average equity stood at 1.2 percent and 8.7 percent respectively.

The advent of selective hostile deals will hasten the pace of restructuring that will ultimately lead to higher returns on average equity and assets.