U.S. Banks Report Record Profit in Third Quarter

[MyLadiesDaddy]

U.S. Banks Report Record Profit in Third Quarter

 

WASHINGTON—The nation’s commercial banks and savings institutions reported a 13% rise in net income in the third quarter, hitting a record as institutions’ profits soared and expenses moderated.

Net income at the 5,980 banks insured by the Federal Deposit Insurance Corp. rose $5.2 billion, to $45.6 billion, in the third quarter, compared with a year earlier, according to data released Tuesday by the FDIC.

“The banking industry reported another positive quarter,” said FDIC Chairman Martin Gruenberg. “Revenue and net income were up from a year ago, loan balances increased, asset quality improved, and the number of unprofitable and ‘problem banks’ continued to fall.”

The rise in net income was due in part to a $10 billion increase in net interest income, up 9.2% from a year earlier, and a $1.2 billion gain in noninterest income, a 1.9% increase as trading revenue improved at large banks. One-time accounting and expense items at three institutions also had an impact on the growth of income, the agency said.

Still, Mr. Gruenberg cautioned banks continue to operate in a “challenging environment.” Low interest rates for an extended period have led some institutions to reach for yield, increasing their exposures to interest rate risk, liquidity risk, and credit risk, he said.

“These challenges will only intensify as interest rates normalize,” said Mr. Gruenberg. “Banks must manage risks prudently to ensure that growth is on a long-run, sustainable path.”

During the third quarter, ended Sept. 30, more than half of banks reported year-over-year growth and less than 5% of banks said they were unprofitable. It was the lowest percentage of unprofitable banks since the third quarter of 1997.

Community banks, which account for 5,521 of the insured institutions, in particular reported a positive quarter with their net income rising $593 million, or 11.8% from the 2015 period. Community banks’ net operating revenue totaled $23 billion, up 8.5% from a year earlier. Loan growth was led by commercial real estate, residential mortgages and commercial and industrial loans.

“Community banks, which account for 43% of the industry’s small loans to businesses, continued to grow their small business loans at a faster pace than the rest of the industry,” said Mr. Gruenberg.

The number of financial institutions on the FDIC’s “problem list” shrank to 132 from 147 the year before, the fewest number of institutions since the third quarter of 2008. There were two bank failures in the latest quarter.

The federal fund that protects consumers’ U.S. bank deposits grew $2.8 billion during the third quarter to $80.7 billion. Its insurance fund reserve ratio rose to 1.18% of the institutions’ estimated insured deposits.

[64jaguar]

Record third quarter debt creation, as we close in on 20 Trillion in national Debt. Debt that can never be repaid. You have no money people since 1933, only credit.. Credit equals debt and debt equal credit. Your dollars are debt notes, promises to pay sometime in the future, lol, Tis why the debt will Never be repaid. The Ponzi scheme continues… but the next fall will be a doozy! Better get on your knees and pray you survive.  

[adhoc10]

On 11/30/2016 at 0:51 PM, 64jaguar said:

Record third quarter debt creation, as we close in on 20 Trillion in national Debt. Debt that can never be repaid. You have no money people since 1933, only credit.. Credit equals debt and debt equal credit. Your dollars are debt notes, promises to pay sometime in the future, lol, Tis why the debt will Never be repaid. The Ponzi scheme continues… but the next fall will be a doozy! Better get on your knees and pray you survive.  

 

I like your ponzi scheme reference. As, long as we keep playing the game, the game continues, until it doesn't. I'm watching the housing inflation rate here in Austin, TX and it has long lost any basis in reality.