CUNA Blasts Banks As Profits Hit Another High
The banking industry's profits again hit new highs during the third quarter, and the credit union trade associations were again quick to call on the banks to "quit complaining about credit unions." The FDIC said that during the third quarter, banks reported record net income of $34.6 billion, up 4.2% over the previous quarter and 1.4% above the previous earnings record set in the first quarter of this year.
In conjunction with the Thanksgiving holiday, CUNA President Dan Mica issued a statement saying, "Bankers should stop complaining and realize they have much to be thankful for. Their juicy profits are the makings of more gravy for a banking industry already stuffed with record profits from 14 of the last 15 years." The FDIC credited strong growth in noninterest income among the largest banks with driving much of the earnings growth. Among banks, the FDIC said that residential mortgage growth remains strong and that real estate construction lending grew during the third quarter; that home equity-secured borrowing has slowed considerably, and that expenses for credit losses were higher.
The FDIC added that the Bank Insurance Fund (BIF) will likely fall below its statutorily mandated target of 1.25% by Dec. 31 and that it may impose a premium on BIF-insured banks next year.