Opening Statement of
FDIC Chairman Martin Gruenberg:
Second Quarter 2015 Quarterly Banking Profile
September 2, 2015
Good morning, and welcome to our release of second quarter results for FDIC-insured
institutions.
The banking industry had another positive quarter, as recent trends have continued.
Revenues and earnings were up, loan portfolios grew, asset quality improved, the
number of problem banks declined, and only one insured institution failed.
However, the interest-rate environment remains challenging for banks. Revenue growth
has been modest and net interest margins continued to decline – even as banks
extended asset maturities to mitigate the impact of low rates.
Meanwhile, community banks had another strong quarter. Revenue and income growth
outpaced the rest of the industry, and loan balances rose at a faster rate than at larger
banks.
Chart 1
Our first chart shows that net income was 43 billion dollars in the second quarter. Net
income was up by more than 7 percent from a year ago, and it is a record-high quarterly
income for the banking industry.
FDIC Chairman Martin Gruenberg:
Second Quarter 2015 Quarterly Banking Profile
September 2, 2015
Good morning, and welcome to our release of second quarter results for FDIC-insured
institutions.
The banking industry had another positive quarter, as recent trends have continued.
Revenues and earnings were up, loan portfolios grew, asset quality improved, the
number of problem banks declined, and only one insured institution failed.
However, the interest-rate environment remains challenging for banks. Revenue growth
has been modest and net interest margins continued to decline – even as banks
extended asset maturities to mitigate the impact of low rates.
Meanwhile, community banks had another strong quarter. Revenue and income growth
outpaced the rest of the industry, and loan balances rose at a faster rate than at larger
banks.
Chart 1
Our first chart shows that net income was 43 billion dollars in the second quarter. Net
income was up by more than 7 percent from a year ago, and it is a record-high quarterly
income for the banking industry.
Second Quarter 2015 Quarterly Banking Profile Chairman’s Opening Statement
2
Community banks reported net income of 5.3 billion dollars, which is nearly 12 percent
higher than a year ago. Community banks benefited from strong growth in both net
interest income and noninterest income.
Chart 2
Chart 2 shows that the increase in earnings was broad-based. Nearly 60 percent of all
banks reported year-over-year growth in their quarterly net income, and less than 6
percent reported a net loss for the quarter.
2
Community banks reported net income of 5.3 billion dollars, which is nearly 12 percent
higher than a year ago. Community banks benefited from strong growth in both net
interest income and noninterest income.
Chart 2
Chart 2 shows that the increase in earnings was broad-based. Nearly 60 percent of all
banks reported year-over-year growth in their quarterly net income, and less than 6
percent reported a net loss for the quarter.