WASHINGTON (2/27/13)--Profits for U.S. banks increased 36.9% during fourth quarter 2012, the 14th consecutive quarter that their profits rose year-over-year, according to the Federal Deposit Insurance Corp. (FDIC).
They reported an aggregate net income of $34.7 billion, which was $9.3 billion higher than the $25.3 billion the FDIC-insured institutions reported in fourth quarter 2011. Increased noninterest income and lower provisions for loan losses accounted for most of the improvement, said the agency's latest Quarterly Banking Profile, released Tuesday.
For the full year, banks earned $141.3 billion, or 19.3% more than in 2011. It was the second-highest earnings reported by the industry since 2006's total of $145.2 billion.
"The improving trend that began more than three years ago gained further ground in the fourth quarter," said FDIC Chairman Martin J. Gruenberg. "Balances of troubled loans declined, earnings rose from a year ago, and more institutions of all sizes showed improved performance."
Other statistics from the report:
Sixty percent of all FDIC-insured institutions reported their quarterly net income improved from fourth quarter 2011. For more details, use the link to the full report.