The FDIC reported that commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $43.0 billion in the second quarter of 2015, up $2.9 billion (7.3%) from a year earlier and the highest quarterly income on record.
The FDIC said the increase in earnings was mainly attributable to a $3.6 billion rise in net operating revenue (net interest income plus total noninterest income). Financial results for the second quarter of 2015 are included in the FDIC’s latest Quarterly Banking Profile released today.
Of the 6,348 insured institutions in the second quarter of 2015, more than half (58.7%) reported year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable during the second quarter fell from 6.8% a year earlier to 5.6%, the lowest since the first quarter of 2005.
“Bankers generally reported another quarter of higher earnings, improved asset quality, and increased lending,” Gruenberg said. “There were fewer problem banks, and only one bank failed during the second quarter.
“However,” he continued, “the low interest-rate environment remains a challenge. Many institutions have responded by acquiring higher-yielding, longer-term assets, but this has left banks more vulnerable to rising interest rates and that is a matter of ongoing supervisory attention.”
Highlights from the Second Quarter 2015 Quarterly Banking Profile
Access the full release from the FDIC here.
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