Banking Profits Surge in Q1, Problem Banks Stable
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The FDIC's latest banking report showed profits for banks rose 66.5 percent to $29 billion in the first quarter of 2011, the seventh consecutive quarter of gains. Earnings were driven by reduced provisions for loan losses.
"The industry shows continuing signs of improvement," said FDIC Chairman Sheila Bair. She added, "though there is a limit to how far reductions in loan-loss provisions can boost industry earnings."
Loan improvement continued as loans and leases 90 days or more past due fell for the fourth consecutive quarter.
The number of banks on the "Problem List" was up four to 888, the fewest in three-and-a-half years. The number of "problem" institutions is still the highest since March 31, 1993, when there were 928.
26 insured institutions failed during the first quarter, the smallest number in the last seven quarters.
"The industry shows continuing signs of improvement," said FDIC Chairman Sheila Bair. She added, "though there is a limit to how far reductions in loan-loss provisions can boost industry earnings."
Loan improvement continued as loans and leases 90 days or more past due fell for the fourth consecutive quarter.
The number of banks on the "Problem List" was up four to 888, the fewest in three-and-a-half years. The number of "problem" institutions is still the highest since March 31, 1993, when there were 928.
26 insured institutions failed during the first quarter, the smallest number in the last seven quarters.
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