Quarterly Banking Prolfe - Banks Made $40.4 Billion in Third Quarter
November 25, 2015 / Source: FDIC
- Quarterly Income of $40.4 Billion Is 5 Percent Higher Than the Year-Ago Quarter
- Lower Noninterest Expenses Are Key to Higher Industry Earnings
- Industry Revenue Is Largely Unchanged From the Year Before
- 12-Month Loan Growth Rate Rises to 5.9 Percent
Earnings Rise, Profitability Remains Flat
Reductions in expenses for litigation reserves outweighed weakness in net operating revenue at large banks as third quarter net income for FDIC-insured institutions totaled $40.4 billion. This represents an increase of $1.9 billion (5.1 percent) from the $38.4 billion reported in third quarter 2014. Well over half of all banks, or 58.9 percent, reported higher quarterlyearnings than the year-ago quarter. The proportion of banks that were unprofitable fell to 5 percent, compared with 6.6 percent in third quarter 2014. The average return on assets was essentially unchanged at 1.02 percent, versus 1.01 percent the year before.