FDIC! NEWS RELEASE
FEDERAL 0£,os11 INSUIANCf COlll'OIATION
FOR lMMEDIATE RELEASE PR-183-91 (12-10-91)
FDIC REFORrS 'IHM' ~MNKS FARNED $4. 3 BILL!ON rn 'IHIRD OOARI'ER
Preli.mi.nary . data fran the FDIC today shew that insured c::x::tTlllE'Cial banks
ea:rned $4. 3 billion in the third quarter of 1991, a decline fran the $4. 6
billion earned in the seoorrl quarter b.It an inproveirent fran the $3. 6 billion
ea:rned in last year's third quarter. '!he results also sh~ that t:roobled
loans at cnnrnercial banks continued to increase during the third quarter of
this year, bJt at a slCJ!ileI" rate.
-.
'lhlrd-quarter performance results for 12,072 FDIC-insured COITIITeI'Cial
banks arxi for the 445 savirgs banks insured by the FDIC's Bank Insurance F\m:i
(BIF) are contained in the agency's latest Quarterly Banking Profile, which is
based on quarterly Reports of Con:lition arxi Incare filed by FDIC-insured
banks. 'Ihe latest Profile analyzes trends in banking performance between the
errl of June and the errl of September.
More than 88 percent of c:x:s:mrercial banks reported a profit for the
third quarter, arxi alnnst 58 percent reported increased earnings fran last
year's third quarter.
'lhe need to cover historically high levels of loan losses remains the
primacy factor limit.in; bank earnings. 'Ihe rate of grCMt:h in troubled loans
at banks in the West is increasirg, while the rising trerrl in t:roobled loan
levels at banks in the Northeast has slehled.
'lhe banking irrlustry's ratio of equity capital to assets remained
unchanged at 6. 7 percent, its highest level since banks began reportirg their
foreign assets in 1976. 'Ihis key net worth ratio measures the stake that bank
stoc!kholders have in their institutions arrl banks' capacity to absorb losses.
-more-
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202~
FEDERAL 0£,os11 INSUIANCf COlll'OIATION
FOR lMMEDIATE RELEASE PR-183-91 (12-10-91)
FDIC REFORrS 'IHM' ~MNKS FARNED $4. 3 BILL!ON rn 'IHIRD OOARI'ER
Preli.mi.nary . data fran the FDIC today shew that insured c::x::tTlllE'Cial banks
ea:rned $4. 3 billion in the third quarter of 1991, a decline fran the $4. 6
billion earned in the seoorrl quarter b.It an inproveirent fran the $3. 6 billion
ea:rned in last year's third quarter. '!he results also sh~ that t:roobled
loans at cnnrnercial banks continued to increase during the third quarter of
this year, bJt at a slCJ!ileI" rate.
-.
'lhlrd-quarter performance results for 12,072 FDIC-insured COITIITeI'Cial
banks arxi for the 445 savirgs banks insured by the FDIC's Bank Insurance F\m:i
(BIF) are contained in the agency's latest Quarterly Banking Profile, which is
based on quarterly Reports of Con:lition arxi Incare filed by FDIC-insured
banks. 'Ihe latest Profile analyzes trends in banking performance between the
errl of June and the errl of September.
More than 88 percent of c:x:s:mrercial banks reported a profit for the
third quarter, arxi alnnst 58 percent reported increased earnings fran last
year's third quarter.
'lhe need to cover historically high levels of loan losses remains the
primacy factor limit.in; bank earnings. 'Ihe rate of grCMt:h in troubled loans
at banks in the West is increasirg, while the rising trerrl in t:roobled loan
levels at banks in the Northeast has slehled.
'lhe banking irrlustry's ratio of equity capital to assets remained
unchanged at 6. 7 percent, its highest level since banks began reportirg their
foreign assets in 1976. 'Ihis key net worth ratio measures the stake that bank
stoc!kholders have in their institutions arrl banks' capacity to absorb losses.
-more-
FEDERAL DEPOSIT INSURANCE CORPORATION, 550 Seventeenth St., N.W., Washington, D.C. 20429 • 202~
-2-
As for savirgs banks insured cy the Bank Insurance Fun:1, these
institutions repxte:i an aggxegate net loss of $344 million for the third
quarter. '!his result was an inproveme.nt fran the $506 million net loss for
the previous quarter ard . the $776 million net loss for the third quarter of
1990. Most of these savirgs banks are located in the Northeast ard their
performan:e has been adversely affected cy depressed real estate markets in
that region.
COpies of the third quarter O;larterly BanJd.ng: Profile are available at
the reception desk in the FDIC's Main Buildir.g at 550 17th street, N.W.,
Washi.rgton, D.C., or cy callirg (202) 898-6996.
###
As for savirgs banks insured cy the Bank Insurance Fun:1, these
institutions repxte:i an aggxegate net loss of $344 million for the third
quarter. '!his result was an inproveme.nt fran the $506 million net loss for
the previous quarter ard . the $776 million net loss for the third quarter of
1990. Most of these savirgs banks are located in the Northeast ard their
performan:e has been adversely affected cy depressed real estate markets in
that region.
COpies of the third quarter O;larterly BanJd.ng: Profile are available at
the reception desk in the FDIC's Main Buildir.g at 550 17th street, N.W.,
Washi.rgton, D.C., or cy callirg (202) 898-6996.
###