Thursday, May 20, 2010

FDIC: Banking Industry Earnings Show Signs of Recovery in First Quarter

In the first quarter, the FDIC’s Quarterly Banking Profile reported that the industry was showing “signs of recovery.” New accounting rules has a significant effect on the income and balance sheets of some institutions; however, the industry as a whole showed improvement. Earnings rose to $18.1 billion over the quarter. While still low by historical standards, this was a large improvement from the $5.6 billion the industry earned in the first quarter 2009, and was the highest since the first quarter 2008. The largest year-over-year increases occurred at the biggest banks, but a majority of institutions (52.2%) reported net income growth. This is the highest percentage of institutions reporting increased quarterly earnings in more than three years (since third quarter 2006).

10.05.20 (Source: Federal Deposit Insurance Corporation)

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