Banks’ Third-Quarter Profits the Highest in Six Years

Bank profits during the third quarter of this year the best quarterly performance in six years.

According to new data released by the FDIC, more than 55% of all banks reported loan growth in the third quarter, the best quarterly performance in six years. Profits at US banks increased 9.4% during the period from the previous quarter, with loan balances increased by 0.9% to $64.8 billion; the fifth time in the last six quarters that loan balances increased.

Banks posted a combined profit of $37.6 billion in the third quarter, which was up 6.6% from a year earlier; it was the highest total profit since the third quarter of 2006. Improving financial strength means that the number of banks on the FDIC’s problem list dropped to 694 in the third quarter from 732 in the previous quarter. This marked the first time in three years there were fewer than 700 institutions on the list.

Read More at the Los Angeles Times