FDIC: Insured Banks Set Q2 Net Income Record
The FDIC said insured institutions reported aggregate net income of $43 billion in Q2/15, up $2.9 billion or 7.4% from a year earlier and the highest quarterly income on record.
The FDIC said insured institutions reported aggregate net income of $43 billion in Q2/15, up $2.9 billion or 7.4% from a year earlier and the highest quarterly income on record.
The FDIC reported the Q1/15 yield on earning assets and net interest margin for U.S banks with assets greater than $10 billion (94) was 3.12% and 2.83%, respectively, down from 3.32% and 3.00% in Q1/14.
According to the FDIC’s Q2/14 report on insured U.S. banks, the average net interest margin fell to 3.15% from 3.25% in Q2/13, which was the lowest quarterly margin for the industry since Q3/89.
U.S. regulators warned 11 large banks that the plans submitted by first-wave filers are not credible and do not facilitate an orderly resolution under the U.S. bankruptcy code.
Bloomberg reported the FDIC is examining whether the largest banks are shifting trades overseas in a way that may undermine rules designed to prevent a repeat of the 2008 crisis.
According to a FDIC research study, the regulator found that community banks have remained highly resilient amid the long-term trend of banking industry consolidation.
The FDIC said U.S. banks’ profits declined in Q3/13 from a year earlier, attributable to a “$4 billion increase in litigation expenses at one institution” and overall lower revenue from reduced mortgage activity.
According to the FDIC, there have been ten insured bank failures in the U.S. year-to-date through April 2013. The regulator notes that bank closing counts are the lowest since 2008 when there were only two failures recorded in the first four months.
CFO reported that by setting new standards for bank underwriting, the Fed, FDIC and OCC ensure private-equity firms and companies will have to meet higher standards when seeking buyout loans.
The FDIC reported 2012 aggregate insured bank net income of $141.3 billion was a 19.3% improvement from 2011 and the second-highest ever reported by the industry after the $145.2 billion earned in 2006.