Daily News: February 28, 2013

FDIC: 2012 Bank Earnings Highest Since 2006

In its latest report on insured banks, the FDIC said aggregate net income of $34.7 billion in the fourth quarter of 2012 was a $9.3 billion (36.9%) improvement from the $25.3 billion in profits the industry reported in the fourth quarter of 2011.

The FDIC said this is the 14th quarter in a row that earnings have registered a year-over-year increase. Increased noninterest income and lower provisions for loan losses continued to account for most of the year-over-year improvement in earnings.

For the full year, industry earnings totaled $141.3 billion a 19.3% improvement over 2011 and the second-highest ever reported by the industry after the $145.2 billion earned in 2006.

“The improving trend that began more than three years ago gained further ground in the fourth quarter,” said FDIC chairman Martin J. Gruenberg. “Balances of troubled loans declined, earnings rose from a year ago, and more institutions of all sizes showed improved performance.”

To read the FDIC press release: click here.