Profits decline 1.2% at US banking institutions in Q3

By Ovunc Kutlu

ANKARA (AA) - US commercial banks and savings institutions saw their total profit decline by 1.2% in the third quarter from the previous quarter, according to the Federal Deposit Insurance Corporation (FDIC).

Total net income came in at $69.5 billion in the third quarter, down $875.5 million from the second quarter of this year.

Aggregate income, however, showed an increase of $18.4 billion, or 35.9%, from the same period last year.

"This increase was driven by further economic growth and improved credit conditions, which led to a third consecutive quarter of aggregate negative provision expense," the FDIC said in a statement Tuesday.

FDIC Chairman Jelena McWilliams said the banking industry's strong earnings in the July-September period were also supported by improvements in credit quality.

“With strong capital and liquidity levels to support lending and protect against potential losses, the banking industry continued to support the country's needs for financial services while navigating the challenges presented by the pandemic,” she said.

The financial results were based on reports from 4,914 commercial banks and savings institutions insured by the FDIC.