@Mor - I still don't know if income smoothing is entirely ethical. I know the intention is to make it so that different periods even out, but it sounds like this is done with a fair amount of prediction.
When banks start predicting things about how much money they are going to have next year, that makes me nervous. Because there's no real way to predict that (if there was we wouldn't have the economic crises that keep happening.) and I know that the customers can end up suffering if it's not done properly.