Email
Password
Remember meForgot password?
    Log in with Twitter

article imageFDIC reports banks earned $14.5 billion in third quarter

By Lynn Herrmann     Nov 23, 2010 in Business
Washington - The Federal Deposit Insurance Corporation (FDIC) released a statement on Tuesday that commercial banks and savings institutions that it insures reported an aggregate profit of $14.5 billion in the third quarter of 2010.
The FDIC report states the industry profits are a $12.5 billion improvement over the $2 billion earned by the industry in the third quarter of 2009. The third quarter 2010 profits are the fifth consecutive quarter with earnings registering a year-over-year increase.
FDIC Chairman Sheila Bair said:
“The industry continues making progress in recovering from the financial crisis. Credit performance has been improving, and we remain cautiously optimistic about the outlook. Lower provisions for loan losses are driving bank earnings by allowing a larger share of revenues to reach the bottom line.”
According to the report, almost two-thirds (63.3 percent) of all institutions showed improvements in their third quarter income from a year ago; however, 18.9 percent of institutions showed a net loss for the quarter.
Total assets showed an increase of $163 billion (1.2 percent) during the third quarter. Assets in trading accounts showed an $86.9 billion increase (12.8 percent) and investment securities holdings increased by $113.7 billion (4.5 percent).
Also included in the report, the FDIC’s liquid resources - cash and marketable securities - remain strong. Those liquid resources stand at $43.7 billion at the end of the third quarter, essentially unchanged from the second quarter.
The report states the primary factor that has contributed to the staggering profits over the same period a year ago was “a reduction in provisions for loan losses.” Net interest income was reported to be $8.1 billion (8.1 percent) higher than a year ago.
Chairman Blair concluded by stating:
“The industry has come a long way in cleaning up balance sheets, building capital, and adjusting to changes in financial markets and the economy. But the adjustments are not over, and this is no time for complacency.”
More about Fdic, 3rd quarter profits, Banking industry
More news from
Latest News
Top News