The nation’s 7,307 banks and thrifts posted net income of $35.3 billion in the first quarter, up 22.9 percent, or $6.6 billion, in the same quarter a year ago, said FDIC.
Loan balances fell by $56.3 billion, or 1 percent, from the preceding quarter, the first decline in four quarters, the agency said.
“The overall decline in loan balances is disappointing after we saw three quarters of growth last year,” said Martin J. Gruenberg, the FDIC’s acting chairman.
“But we should be cautious in drawing conclusions from just one quarter.”
The quarterly decline in loan balances was led by a seasonal $38.2 billion drop in the credit-card category, the agency said. Residential real estate fell by $19.2 billion.
“Insured institutions have made steady progress in shedding bad loans, bolstering net worth and increasing profitability,” said Gruenberg.No tags for this post.