Banks' 2Q Was Second Most Profitable in Two Decades: SNL

The banking industry had its second most profitable quarter in 23 years in the April-June period, according to SNL Financial.

Aggregate net income among U.S. banks and thrifts was $40.2 billion in the second quarter, the Charlottesville, Va.-based data collector said in a report circulated Monday. That outmatched every quarter since SNL began gathering the data in 1991 except for the first quarter of 2013, when banks reported profits of $40.4 billion.

Net interest income for the second quarter rose 2% year over year, to $105.5 billion. However, banks recorded $63.5 billion of noninterest income during the second quarter, down 6% from a year earlier.

Meanwhile, loans held by the banking industry increased 2%, to $8.1 trillion. SNL said that was the first time loans topped the $8 trillion mark since 1991.

The aggregate provision for loan losses declined 23%, to $6.6 billion, compared with a year earlier.

Additionally, total noninterest expenses fell by 2% from a year earlier, to $104.9 billion.

SNL's data, which is not adjusted for inflation, is based on quarterly financial results banks file with regulators.