Record Bank Profits Again Cited By CreditUnions

WASHINGTON - (11/23/05) The banking industry’s profitsagain hit new highs during the third quarter, and the credit uniontrade associations were again quick to call on the banks to“quit complaining about credit unions.” The FDIC saidthat during the third quarter, banks reported record net income of$34.6 billion, up 4.2% over the previous quarter and 1.4% above theprevious earnings record set in the first quarter of this year. Inconjunction with the Thanksgiving holiday, CUNA President Dan Micaissued a statement saying, “Bankers should stop complainingand realize they have much to be thankful for. Their juicy profitsare the makings of more gravy for a banking industry alreadystuffed with record profits from 14 of the last 15 years.”The FDIC credited strong growth in noninterest income among thelargest banks with driving much of the earnings growth. Amongbanks, the FDIC said that residential mortgage growth remainsstrong and that real estate construction lending grew during thethird quarter; that home equity-secured borrowing has slowedconsiderably, and that expenses for credit losses were higher. TheFDIC added that the Bank Insurance Fund (BIF) will likely fallbelow its statutorily mandated target of 1.25% by Dec. 31 and thatit may impose a premium on BIF-insured banks next year.