FDIC Issues Underwriting Trends Survey
The FDIC issued its winter issue of the “Underwriting Trends and Other Highlights” survey which focuses on trends in underwriting, loan growth and funding.
The FDIC issued its winter issue of the “Underwriting Trends and Other Highlights” survey which focuses on trends in underwriting, loan growth and funding.
The FDIC reported industry net income was 5.2% higher in Q3/17 versus a year earlier on higher net interest income. The regulator noted, however, that “competitive lending conditions continue to pose challenges.”
The FDIC reported bank aggregate net income of $48.3 in Q2/17 was up $4.7 billion or 10.7% from a year earlier. The regulator noted the increase was mainly attributable to a 9.1% gain in net interest income.
According to the FDIC’s recently released Shared National Credit Program Review, regulators said risk in the portfolio of large syndicated bank loans declined slightly but remains elevated.
The FDIC reported full-year 2016 earnings rose to $171.3 billion, up 4.9% compared to 2015. The regulator noted that loan loss provisions totaled $47.8 billion in 2016, an increase of 28.8% from 2015.
The FDIC and Federal Reserve rejected Wells Fargo’s latest “living will” plan and, as a result, have placed restrictions on the bank’s ability to grow its international and non-bank activities.
The FDIC reported expanding loan portfolios generated higher levels of net income in Q2/16. The regulator also noted noncurrent C&I loans increased with charge-offs up 13% year/year.
The FDIC reported, “The banking industry continued to improve in Q4/15. However, banks must remain vigilant as they manage interest-rate risk, credit risk and evolving market conditions.”
The FDIC reported Q3/15 bank net income of $40.4 billion was up 5.1% or $1.9 billion from a year earlier. Chairman Martin J. Gruenberg noted “signs of growing interest-rate risk and credit risk that warrant attention.”
The FDIC reported that for the third consecutive year, JPMorgan Chase led the U.S. in deposit growth as customers added $51 billion to their bank accounts — nearly twice as much as any other bank.