A quarterly report shows banks are making the most they have in the past six years.
The FDIC quarterly report showed the industry earned $37.6 billion in the third quarter – up $2.3 billion, or 6.6 percent, from a year earlier.
That was the industry’s highest quarterly total since the third quarter of 2006, the FDIC said.
And while banks again reduced the amount of funds they set aside in case of losses, revenue growth contributed more to the earnings boost in the third quarter, bucking a recent trend, FDIC Chairman Martin Gruenberg said.
“Loan growth is becoming more established,” Gruenberg said. “Banks continue to clean up and strengthen their balance sheets.”
In good news for consumers, that also mean lending is picking up.