US Banks Profit $62 Billion in Q3

• US Banks Profit $62 Billion in Q3

US banking sector announced a combined profit of $62 billion in the third quarter of the year.

According to the Federal Deposit Insurance Corporation (FDIC) report, the figure was 29.3 percent better than the same period of 2017.

The profit was as a result of lower tax rate and higher operating revenues that enables businesses to grow.

The report also noted that 3.5 percent of the banks announce net losses, down from 4 percent recorded a year ago.

The number of problem banks declined from 81 in the previous quarter to 71 in the third quarter. The lowest since the third quarter of 2007.

Jelena McWilliams, the FDIC’s Chair, however, said while profitability was strong in the third quarter, the industry had seen heightened exposure to credit and interest-rate risk as lenders searched for higher-yield loans.

“Attention to the prudent management of these risks will position banks to be resilient so that they can sustain lending,” McWilliams told reporters.

“The competition to attract loan customers has been strong and it will remain important for banks to maintain their underwriting discipline and credit standards.”