Does the TBTF subsidy wipe out bank profits?

If it does, then banking in its present form is a farce. And it would seem from the figures below that the TBTF subsidy does indeed wipe out bank profits. However, I’m not the world’s expert on how reliable these figures are, so I’m just setting them out for what they’re worth.

Re the size of the TBTF subsidy, that is around 3.45% of GDP according to this Vox article (1). (See final paragraph of the article.)
 
And according to the chart (see below) produced by this source (2), bank profits as a percentage of GDP are very roughly half the above 3.45% figure.

 
Also an article (3) by Andrew Haldane on TBTF is consistent with the above, if not agreeing with the exact figures.

And that all raises the question: what’s the answer to this shambles? Well my answer is full reserve banking because that’s a system under which it is next to impossible for banks to fail, plus there is no sort of subsidy, TBTF or otherwise, of banks.

         _______________


References.
1. Priyank Gandhi, Hanno Lustig and Alberto Plazzi.
“Equity is cheap for large financial institutions: The international evidence”
2.  Michael Janda. “Australia's banks are too big for the nation's good”.
3. Andrew Haldane. “Have we solved the ‘too big to fail’?”