The statistics of the banks' profit and loss accounts are compiled using data on the income and expenses of German MFIs. In addition they include the calculation of balance sheet profits and losses, their main components, as well as ratios such as the return on equity. This involves the evaluation of the profits and losses calculated from the annual accounts which the banks must submit to the Bundesbank pursuant to section 26 of the German Banking Act (Kreditwesengesetz). As the annual accounts apply to the whole institution (but not to the group), the income and expenses of foreign branches are also covered.