FDIC: Banking Conditions Improve, Trouble Still Looms
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corp. reported a total profit of $21.6 billion in the second quarter compared to a $4.4 billion loss a year prior.
The quarterly earnings total was the highest since the third quarter of 2007, but remain "below historical norms," the FDIC noted.
About 20 percent of institutions reported a net loss for the quarter, an improvement over the nearly 30 percent that reported losses a year ago.
Also, the average return on assets increased to 0.65 percent from negative 0.13 percent.
Still, two-thirds of banks increased their loan-loss reserves in the quarter, total loans and leases declined by 1.4 percent and the number of institutions on the FDIC's "problem list" increased from 775 to 829, the greatest number of problem banks since 1993.
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