The American banks They reported on Wednesday a slowdown in their profits in the third quarter of the year, due to the decline in non-interest income and the increase in losses made on banking investments.
The U.S. Federal Deposit Insurance Corporation (FIDC) reported that bank profits totaled $68.4 billion in the latest quarter, a 3.4% less than in the previous quarter.
From one year to the next, bank profits fell by 4.6%due in large part to banks setting aside more funds in provisioning expenses for potential loan losses, which increased by 33.2% in the last four quarters.
Non-interest income fell US$4.1 billion, or 5.2%, in the third quarter, while realized losses increased by $3 billion, according to the FDIC.
The agency also reported that banks saw their unrealized losses on securities increase to $683.9 billion in the third quarter, an increase of 22.5% driven primarily by rising mortgage rates that have reduced the price of mortgage-backed securities held by banks.
However, the agency noted that despite these challenges, banks remain well capitalized, the rate of deposit flight has stabilized and the level of non-current loans held by banks remained below previous levels. to the pandemic.
“The banking sector continued to show resilience in the third quarter,” FDIC Chairman Martin Gruenberg said in a statement.
Source: Gestion
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