FDIC Says In 2012, Banks Posted Second-Best Earnings On Record | WAMU 88.5 - American University Radio

NPR : News

Filed Under:

FDIC Says In 2012, Banks Posted Second-Best Earnings On Record

Profits for U.S. banks skyrocketed in 2012, a report from the Federal Deposit Insurance Corp. finds today.

According to Bloomberg, U.S. banks made $141.3 billion in net income last year. That is the "second-best earnings on record." The best year was 2006, when banks reported $145.2 billion in earnings.

The AP explains:

"'The improving trend that began more than three years ago gained further ground in the fourth quarter,' FDIC Chairman Martin Gruenberg said in a statement. Still, 'troubled loans, problem banks and bank failures remain at elevated levels, while growth in lending and revenue remains sluggish.'

"Banks with assets exceeding $10 billion drove the bulk of the earnings growth in the October-December period. While they make up just 1.5 percent of U.S. banks, they accounted for about 82 percent of the industry earnings.

"Those banks include Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. Most of them have recovered with help from federal bailout money and record-low borrowing rates."

Bloomberg reports that the profits were broad with "60 percent of banks reporting increases from the previous year even as interest-income margins tightened."

Copyright 2013 NPR. To see more, visit http://www.npr.org/.

NPR

The World Music Education of Philip Glass

In his new memoir, Music Without Words, the composer explains how a chance meeting with Ravi Shankar sparked a fascination with the cultures of the world and their music.
NPR

PepsiCo Swaps Diet Drink's Aspartame For Other Artificial Sweeteners

The company says Diet Pepsi consumers are concerned about aspartame. But the Food and Drug Administration has long affirmed that the sweetener is safe in amounts commonly used by beverage companies.
NPR

Surgeon General Vivek Murthy On Gun Control, Vaccines And Science

Surgeon General Vivek Murthy was officially sworn in this week. His confirmation was held up for more than a year because of comments he made about gun violence. Murthy talks with NPR's Scott Simon.
NPR

As Health Apps Hop On The Apple Watch, Privacy Will Be Key

The notion of receiving nutrition advice from artificial intelligence on your wrist may seem like science fiction. But health developers are betting this kind of behavior will become the norm.

Leave a Comment

Help keep the conversation civil. Please refer to our Terms of Use and Code of Conduct before posting your comments.