U.S. bank earnings increase 21 percent
U.S. bank earnings rose 21 percent in the April-June quarter and lending to consumers increased, adding to evidence that the industry is strengthening four years after the financial crisis.
The Federal Deposit Insurance Corp. said Tuesday that the banking industry earned $34.5 billion in the second quarter, up from $28.5 billion in the second quarter of 2011.
U.S. banks set aside less for losses on loans. And the number of troubled banks fell for the fifth straight quarter.
Banks became less cautious about lending. Bank loans to consumers increased in most categories, including credit card loans and home mortgages, reversing a first-quarter decline.
Still, revenue growth remains "sluggish," FDIC Chairman Martin Gruenberg said at a news conference, rising a slim 0.8 percent in the second quarter from a year earlier.
Gruenberg said that the industry's bottom line was affected by JPMorgan Chase & Co.'s nearly $6 billion in trading losses revealed recently from a soured bet in its London operation. "It certainly impacted the results, and without that I think it would have been a stronger picture," he said.
JPMorgan reported second-quarter net income of $5 billion, down from $5.4 billion a year earlier.-- AP
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
Sarra Sounds Off Ep. 35: EI baseball, girls lacrosse and plays of the week On the latest episode of "Sarra Sounds Off," we look at East Islip baseball's inspirational comeback story, Jared Valluzzi has the plays of the week and Tess Ferguson breaks down the top defensive players in girls lacrosse.
