WASHINGTON — The industry's profit in the second quarter rose more than 5% from a year earlier to $40.2 billion as institutions continued to reduce their loan-loss expenses and registered an uptick in loan growth, the Federal Deposit Insurance Corp. said Thursday.

The FDIC's Quarterly Banking Profile attributed the industry's gains to a 22% lower loan loss provision from a year earlier, as well as lower expenses from goodwill impairment and payroll. Goodwill impairment expenses totaled just $192 million, a sharp drop from the $4.4 billion in such expenses a year earlier. Salary and benefit expenses dropped 0.8% as institutions reported over 37,000 fewer employees than from a year earlier.

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