Bank Profits Surge 12% To $90.1 Billion As Loan Growth Accelerates
By CU Today Staff —
WASHINGTON— U.S. banks reported a sharp increase in earnings during the second quarter as loan and deposit growth continued and asset-quality measures improved, according to the FDIC's latest Quarterly Banking Profile.
The nation’s 4,238 FDIC-insured commercial banks and savings institutions reported aggregate net income of $90.1 billion during the quarter, up $9.7 billion, or 12%, from the first quarter. The industry’s return on assets rose to 1.37%, while community bank net income increased 8.2% from the previous quarter.
Loan growth was widespread, with total loans increasing 1.8% during the quarter and 6.8% from a year earlier. Domestic deposits rose 0.8%, marking the eighth consecutive quarterly increase, while the industry’s net interest margin edged up one basis point to 3.32%. Asset quality also improved, with both past-due and nonaccrual rates and net charge-off rates declining from the first quarter.
Banks continued to maintain strong capital and liquidity levels, the FDIC said. The Deposit Insurance Fund reserve ratio increased five basis points during the quarter to 1.48%.
Originally reported by CU Today.