US bank earnings up 37 pct. in 4th Qtr, highest in 6 years; lending rises

WASHINGTON – Profits of U.S. banks jumped almost 37 per cent from October through December, reaching the highest level in six years as banks continued to step up lending.

The figures are fresh evidence of the banking industry’s sustained recovery more than four years after the financial crisis.

The Federal Deposit Insurance Corp. reported Tuesday that banks earned $34.7 billion in the quarter, the highest since the fourth quarter of 2006.

The agency also says banks posted reduced losses on loans in the fourth quarter and set aside almost 25 per cent less to cover potential losses than in the final quarter of 2011.

Loans increased 1.7 per cent in the fourth quarter. The number of banks on the FDIC’s “problem” list fell to 651 from 694.

For all of 2012, bank earnings rose 19.3 pct. to $141.3 billion, the second-highest annual level ever.

News from © The Associated Press, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

The Associated Press

The Associated Press is an independent global news organization dedicated to factual reporting. Founded in 1846, AP today remains the most trusted source of fast, accurate, unbiased news in all formats and the essential provider of the technology and services vital to the news business. More than half the world’s population sees AP journalism every day.

Related Articles