Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Card Issuers » Banks Post $37.6 Billion in Third Quarter

Banks Post $37.6 Billion in Third Quarter

Add to Favorites:
Banks Post $37.6 Billion in Third Quarter
Tags: , , , ...
December
7

The Federal Deposit Insurance Corporation (FDIC) reported that commercial banks and savings institutions brought in aggregate net income of $37.6 billion during the third quarter this year. That represents a 6.6% improvement over the same time period last year, when banks posted $35.2 billion in profit.

There were also fewer problem banks this past quarter and more loans, which are good economic indicators. This is the 13th consecutive quarter in which bank profits have increased, said FDIC Chairman Martin Gruenberg . “Signs of further progress were evident in a number of indicators, such as loan growth, asset quality and profitability,” he said.

Improving economic indicators

Other improvements include the news that banks charged off $22.3 billion in loans, which is a 16.5% decrease from the third quarter of 2011. Loss provisions were $14.8 billion, compared with 18.6 billion in last year’s third quarter. Over half of all FDIC-insured financial institutions reported quarterly net income improvements, and 10.5% reported net losses last quarter.

Bank failures were down in the third quarter. Only twelve institutions failed in that time period – the lowest number since the fourth quarter of 2008. So far this year 50 banks have failed, compared to 90 banks by this time last year.

Fewer problem banks and more loans

For the sixth quarter in a row, the number of so-called “problem banks” fell – from 732 to 694. This is the first time that number has dipped below 700 in three years, a very positive indicator for the economy. Problem bank assets totaled $262 billion, down from $282 billion the previous quarter.

Loan balances increased for the fifth time in the last six quarter, which means credit lines are loosening up. Residential mortgages are up by $14.5 billion, commercial and industrial loans rose $31.8 billion, and auto loans are up by $7.4 billion. Gruenberg said that overall, “more than 55 percent of all banks reported loan growth. Small banks are also increasing their lending, including their loans to small businesses.” To see the full report go to FDIC’s Quarterly Banking Profile.

Add to Favorites:

Related News:

Discover Card Earnings Up in Fourth Quarter

By Elizabeth Nelson, Posted: December 24, 2012

Discover Financial Services’fourth-quarter earnings were up 6% from last year. Charge-offs for the credit card issuer were at an all-time low in the final quarter of 2012. Continue reading
Financial Brands Make Gains in 2013

By Dar Dowling, Posted: October 14, 2013

Consumer confidence in financial companies is on the rise, according to the Best Global Brands report. Eight of the eleven financial entities in the study published by Interbrand showed significant gains in popularity and value. Continue reading
Credit Continues to Increase, Improving Economic Outlook

By Elizabeth Nelson, Posted: January 11, 2013

November numbers released by the Federal Reserve show a rise in credit for the fourth month in a row. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
Earn 1% cash back on gas and grocery purchases. Terms apply.
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit