ARLINGTON, Va. (8/30/13)--Commercial bank and savings institution second quarter income jumped 22.6%--up to $42.2 billion, reported the Federal Deposit Insurance Corp. (FDIC) of its insured institutions. That represented a $7.8 billion increase from the $34.4 billion in profits that the industry reported a year earlier.
The FDIC said this is the 16th consecutive quarter that earnings have registered a year-over-year increase.
However, FDIC Chairman Martin Gruenberg said industry revenue growth remains weak, reflecting narrow margins and modest loan growth. "And," he added, "the current interest rate environment creates an incentive for institutions to reach for yield, which is a matter of ongoing supervisory attention."
"Nonetheless, overall these results show a continuation of the recovery in the banking industry," he said.