Banking Industry Earned $37.6 Billion in Third Quarter
American Bankers Association article republished:
In related news, 57 percent of all banks and savings institutions reported an improvement in quarterly net income from a year ago. According to the FDIC, institutions earned $37.6 billion in the third quarter, which was $2.3 billion more than the industry’s $35.2 billion profit a year ago. Read the FDIC Quarterly Banking Profile.
Those reporting third-quarter net losses fell to 10.5 percent, down from 14.6 percent a year earlier. The average return on assets rose to 1.06 percent, up from 1.03 percent a year ago.
The number of institutions on the problem bank list dropped from 732 to 694 (the first time below the 700 mark in three years) while total assets held by such institutions declined by $20 billion to $262 billion. The DIF balance rose from $22.7 billion to $25.2 billion during the third quarter. The improvement stemmed primarily from assessment revenues and fewer bank failures, officials said.
“The third quarter was another strong one for the banking industry, with solid earnings, higher capital levels, lower losses and stable asset quality signifying an industry that continues to gain strength,” ABA Chief Economist Jim Chessen said.
To read more ABA Newsbytes visit www.ABA.com.
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