Aug 23, 201108:39 AMBlog

FDIC-insured institutions earned $28.8B Q2

Aug 23, 2011 - 08:39 AM
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. reported an aggregate profit of $28.8 billion during the second quarter of 2011, a $7.9 billion improvement from the $20.9 billion in net income the industry reported in the second quarter of 2010.

This is the eighth consecutive quarter that earnings registered a year-over-year increase. As has been the case in each of the last seven quarters, lower provisions for loan losses were responsible for most of the year-over-year improvement in earnings. "Banks have continued to make gradual but steady progress in recovering from the financial market turmoil and severe recession that unfolded from 2007 through 2009," said FDIC acting chairman Martin J. Gruenberg. "This trend has expanded to include a growing proportion of insured institutions."

A majority of all institutions (60 percent) reported improvements in their quarterly net income from a year ago. Also, the share of institutions reporting net losses for the quarter fell to 15.2 percent, down from 20.8 percent a year earlier. The average return on assets, a basic yardstick of profitability, rose to 0.85 percent, from 0.63 percent a year ago.

Second-quarter loss provisions totaled $19 billion, less than half the $40.4 billion that insured institutions set aside for losses in the second quarter of 2010. However, net operating revenue (net interest income plus total noninterest income) was $3 billion (1.8 percent) lower than a year earlier, and realized gains on securities declined by $1.3 billion (61.1 percent).

Asset quality showed further improvement as noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell for a fifth consecutive quarter. Insured banks and thrifts charged off $28.8 billion in uncollectible loans during the quarter, down $20.9 billion (42.1 percent) from a year earlier.

Click here for the complete Quarterly Banking Profile.


Edit Module
Bookmark and Share Email this page Email Print this page Print Feed Feed
Edit Module

About This Blog

Follow our blog for all the latest in local business news. To get the top local business news, subscribe to Daily Biz Briefs email newsletter. As a reader of this FREE email you get breaking business news each business day afternoon delivered right to your email inbox.



Atom Feed Subscribe to the Blog Feed »

Recent Posts