Banks Bounce Back In Q4
Commercial banks insured by the Federal Deposit Insurance Corp. reported a total profit of $914 million in the fourth quarter, a sharp turnaround from the $37.8 billion loss reported in the same quarter a year before.
Still, the profit numbers are well below normal for quarterly earnings and more than a third of all institutions reported net losses for the quarter, the FDIC said.
Revenues were also up from 2008. Noninterest income was $52.8 billion, a 25 percent increase over 2008. Net interest income was $38.1 billion, a 10.6 percent improvement.
The revenue improvements were offset by a $71.5 billion increase in loan loss provisions during 2009.
Commercial and industrial loans dropped by $54.5 billion or 4.3 percent, while real estate construction and development loans declined by $41.5 billion (8.4 percent).
The FDIC said the year ended with 702 banks on its “problem list.” That’s up from 552 at the end of the third quarter. More than 40 institutions failed during the fourth quarter and the 140 failed during the year, the highest total since 1992.
In Massachusetts, bank profits were $12.5 billion last year, according to the FDIC. Noncurrent loans totaled $58.1 million in 2009.
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