Bank profits up; problems still growing
Bank earnings hit their highest level since the third quarter of 2007, the FDIC says. Bank failures are rising but should level out.
Federal Deposit Insurance Corp.'s quarterly report card, released
today, showed the list of "problem banks" reached 829 in the second quarter, an
increase of 54 lenders, many of which were small community banks.
While that is a smaller increase than in previous
quarters, the number of problem banks remains at its highest level in
more than 16 years.
Not all of those banks will founder, but officials said they expected the number of
failures to peak later this year. So far this year, 118 banks have
failed, with 45 closing in the second quarter.
Even so, bank earnings continue to rebound. The banking industry posted a $21.6 billion profit in the second quarter as loan losses stabilized, the FDIC said.
That profit was nearly five times as
large as the $4.4 billion a year ago, and it was the industry’s best
results since the credit card crisis began in the third quarter in 2007,
The New York Times said.
Banks are also setting
aside less money to cover future losses than they were before and
taking advantage of ultra-low interest rates to improve lending margins.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the holiday-shortened week on a mixed note as the Dow Jones Industrial Average shed 0.1%, while the S&P 500 added 0.1% with seven sectors posting gains.
Equity indices faced an uphill climb from the opening bell after disappointing quarterly results from Google (GOOG 536.10, -20.44) and IBM (IBM 190.04, -6.36) weighed on the early sentiment. Google reported earnings $0.15 below the Capital IQ consensus estimate on revenue of $15.42 ... More
More Market News
|There’s a problem getting this information right now. Please try again later.|
VIDEO ON MSN MONEY
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'