FDIC: Bank Profits Best In Two Years
Banks insured by the Federal Deposit Insurance Corp. reported $18 billion in profits in the first quarter, a $12.5 billion improvement over the first quarter of 2009.
Still, the FDIC said the quarter's results were "well below historical norms for quarterly profits."
More than half of all FDIC-insured commercial and savings banks reported year-over-year profit increases while less than 20 percent reported declines.
The FDIC said the profit improvement was primarily the result of a reduction in the amount banks were putting aside to cover bad loans. Banks set aside $51.3 billion for loan losses during the quarter, $10.2 billion less than a year ago.
Asset quality also improved during the quarter. Loans and leases that were 90 days or more past due rose from 5.38 percent to 5.45 percent, or $17.4 billion, the highest level in 27 years. However, the FDIC said the increase was the smallest in more than two years.
In all, banks reported $220.4 billion in loans and leases, a 3 percent increase over the same period a year earlier.
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