The total net income of US banks in the first quarter fell by 22.2% compared to the same period last year, according to data from the Federal Deposit Insurance Corporation (FDIC). The net profit of 4,796 thousand commercial banks and savings institutions of the country participating in the insurance system and publishing reports amounted to $59.7 billion in January-March, which is $17 billion less than a year earlier. Relative to the fourth quarter, the indicator fell by $4.1 billion (6.5%). In both cases, the decrease was due to an increase in provisions to cover possible losses on bad loans, the report says. “First-quarter net income declined year-over-year as the banking industry increased spending on reserves, reflecting growth in lending and economic and geopolitical uncertainty,” FDIC interim chief Martin Grunberg said in a statement. The main part of financial institutions (62.8%) showed a decrease in profit compared to the first quarter of 2021. The share of unprofitable banks rose to 5.5% from 3.9% a year ago. The total volume of loans on the balance sheets of banks over the past 12 months increased by $192.6 billion (by 11.4%), the FDIC said. In January-March, relative to the previous three months, it increased by $109.9 billion (by 1%). In the first quarter, funds in the amount of $5.2 billion were allocated for bad debts. At the same time, reserves in the amount of $14.5 billion were released in January-March 2021. The number of problem banks in the US as of March 31 fell to a historic low – 40 vs. 44 three months earlier. The maximum level of 888 such financial institutions was recorded in the first quarter of 2011. The total volume of assets of troubled banks increased over the three months of this year by $3 billion – up to $173.1 billion. During the past quarter, 44 banks joined others in mergers and acquisitions, while not a single bankruptcy was recorded, the press notes. corporate release. The total volume of the FDIC deposit insurance fund decreased by almost $100 million in the first quarter and amounted to $123 billion. Source: FINMARKET.RU

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