PRESS RELEASE
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
June 3, 2002
Media Contact
Phil Battey (202) 898-6993:
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-60-2002
FDIC ANNOUNCES RECORD BANKING INDUSTRY EARNINGS;
RETURNS AT LARGE BANKS CLIMB MOST
Commercial banks had record earnings of $21.7 billion in the first quarter, surpassing
the previous quarterly record by 9.6 percent, the Federal Deposit Insurance Corporation
reported today. The industry's return on assets (ROA), a basic yardstick of earnings
performance, rose to 1.33 percent, the third-highest ever. The biggest gains in
profitability occurred at large banks, where rising net interest income more than offset
higher expenses for loan-loss provisions and lower market-sensitive revenues. Almost
two-thirds of all banks -- 64 percent -- reported higher earnings than a year ago.
"The driving force behind this performance was net interest income, particularly at larger
institutions," said Don Powell, FDIC Chairman. "Earnings would have been even higher
but for increased expenses for loan losses and lower market-sensitive revenues."
Profits from core operations benefited from banks' control of operating expenses, as
well as the improvement in net interest income. Credit-quality problems continued to
grow, particularly in the commercial loan portfolios of large banks, and in banks' credit-
card lending.
The number of commercial banks on the FDIC's "problem list" increased from 95 to 102
in the quarter. The last time the list had more than 100 commercial banks was year-end
1995. The assets of the banks on the list inched up by $1 billion to $37 billion. In
addition, six commercial banks failed during the quarter. Chairman Powell's Opening
Statement from the press briefing is attached.
Attachments:
The FDIC Prelimary Bank Earnings Report
Opening Statement of Don Powell Chairman Federal Deposit Insurance Corporation at
a Press Conference Announcing Preliminary Bank Earnings for the First Quarter 2002
Washington, D.C., June 3, 2002
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
June 3, 2002
Media Contact
Phil Battey (202) 898-6993:
Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's
banking system. It promotes the safety and soundness of these institutions by identifying, monitoring and addressing
risks to which they are exposed. The FDIC receives no federal tax dollars — insured financial institutions fund its
operations.
FDIC press releases and other information are available on the Internet at www.fdic.gov, by subscription electronically
(go to www.fdic.gov/about/subscriptions/index.html) and may also be obtained through the FDIC's Public Information
Center (877-275-3342 or 703-562-2200). PR-60-2002
FDIC ANNOUNCES RECORD BANKING INDUSTRY EARNINGS;
RETURNS AT LARGE BANKS CLIMB MOST
Commercial banks had record earnings of $21.7 billion in the first quarter, surpassing
the previous quarterly record by 9.6 percent, the Federal Deposit Insurance Corporation
reported today. The industry's return on assets (ROA), a basic yardstick of earnings
performance, rose to 1.33 percent, the third-highest ever. The biggest gains in
profitability occurred at large banks, where rising net interest income more than offset
higher expenses for loan-loss provisions and lower market-sensitive revenues. Almost
two-thirds of all banks -- 64 percent -- reported higher earnings than a year ago.
"The driving force behind this performance was net interest income, particularly at larger
institutions," said Don Powell, FDIC Chairman. "Earnings would have been even higher
but for increased expenses for loan losses and lower market-sensitive revenues."
Profits from core operations benefited from banks' control of operating expenses, as
well as the improvement in net interest income. Credit-quality problems continued to
grow, particularly in the commercial loan portfolios of large banks, and in banks' credit-
card lending.
The number of commercial banks on the FDIC's "problem list" increased from 95 to 102
in the quarter. The last time the list had more than 100 commercial banks was year-end
1995. The assets of the banks on the list inched up by $1 billion to $37 billion. In
addition, six commercial banks failed during the quarter. Chairman Powell's Opening
Statement from the press briefing is attached.
Attachments:
The FDIC Prelimary Bank Earnings Report
Opening Statement of Don Powell Chairman Federal Deposit Insurance Corporation at
a Press Conference Announcing Preliminary Bank Earnings for the First Quarter 2002
Washington, D.C., June 3, 2002