PRESS RELEASE
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
February 28, 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-23-2002
LOAN PROBLEMS GROW EVEN AS COMMERCIAL BANK EARNINGS
BREAK RECORDS, FDIC ANNOUNCES
Commercial banks earned a record $74.6 billion in 2001, up $3.5 billion from the record
$71.1 billion in industry earnings in 1999, the Federal Deposit Insurance Corporation
reported today. In 2001, banks also enjoyed the best fourth-quarter earnings in industry
history: $19 billion. "All that is good news, but the news is not all good," said FDIC
Chairman Don Powell in a press briefing announcing bank earnings. He noted that only
gains on sales of securities made the annual earnings record possible. He pointed out
that earnings from core banking operations - such as lending - declined, and that asset
quality continued to deteriorate, as it has for the past two years. In addition, the number
of banks on the FDIC's "Problem List" grew from 74 to 95, the largest jump since 1991.
Assets represented on the list more than doubled. "Capital levels remain high and the
industry continues strong, but there are concerns - the integrity of earnings, the decline
of asset quality, the increase in troubled institutions - and these concerns continue to
grow," Chairman Powell said. The Chairman's Opening Statement from the press
briefing is attached.
Attachment: Chairman’s Statement
Attachment: The FDIC Preliminary Bank Earnings Report Fourth Quarter, 2001
Federal Deposit Insurance Corporation
FOR IMMEDIATE RELEASE
February 28, 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-23-2002
LOAN PROBLEMS GROW EVEN AS COMMERCIAL BANK EARNINGS
BREAK RECORDS, FDIC ANNOUNCES
Commercial banks earned a record $74.6 billion in 2001, up $3.5 billion from the record
$71.1 billion in industry earnings in 1999, the Federal Deposit Insurance Corporation
reported today. In 2001, banks also enjoyed the best fourth-quarter earnings in industry
history: $19 billion. "All that is good news, but the news is not all good," said FDIC
Chairman Don Powell in a press briefing announcing bank earnings. He noted that only
gains on sales of securities made the annual earnings record possible. He pointed out
that earnings from core banking operations - such as lending - declined, and that asset
quality continued to deteriorate, as it has for the past two years. In addition, the number
of banks on the FDIC's "Problem List" grew from 74 to 95, the largest jump since 1991.
Assets represented on the list more than doubled. "Capital levels remain high and the
industry continues strong, but there are concerns - the integrity of earnings, the decline
of asset quality, the increase in troubled institutions - and these concerns continue to
grow," Chairman Powell said. The Chairman's Opening Statement from the press
briefing is attached.
Attachment: Chairman’s Statement
Attachment: The FDIC Preliminary Bank Earnings Report Fourth Quarter, 2001