FDIC: US banks' profits up 36.9% in Q4

27 February 2013

US banks experienced their second most profitable fourth quarter on record during the final three months of 2012, new official figures have revealed.

Data published yesterday (26 February) by the Federal Deposit Insurance Corporation (FDIC) showed that American financiers registered an aggregate net income of $34.7 billion throughout the period between October and December last year.

This represents an improvement of $9.3 billion (36.9 per cent) on the profit level of $25.3 billion recorded in the corresponding period in 2011 and the second-highest ever reported in the fourth quarter of a year after the total of $145.2 billion posted in 2006.

In addition, this is also the 14th quarter in succession that earnings have gone up year-on-year and, for the year as a whole, profits totalled $141.3 billion - an improvement of 19.3 per cent on 2011.

Martin J Gruenberg, chairman of the FDIC, commented: "Balances of troubled loans declined, earnings rose from a year ago and more institutions of all sizes showed improved performance."

By Tony Aynsley

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