Banks are becoming profitable, FDIC says

Banks are becoming profitable, FDIC says
Triangle Business Journal
Date: Wednesday, August 29, 2012
Around the Triangle, with so many community banks and a handful of big banks fighting for every deposit, the report from the Federal Deposit Insurance Corp. could not have come at a better time. FDIC reports there are only 10.9 percent of FDIC-insured banks had net losses during the second quarter, down from 15.7 percent a year earlier. Also, the number of problem institutions fell from 772 to 732 during the quarter.
Also, the average return on assets for the entire group of banks increased to 0.99 percent from 0.85 percent a year ago. For giant financial institutions such as Bank of America (NYSE: BAC), Wells Fargo & Co. (NYSE: WFC) and JP MorganChase & Co. (NYSE: JPM) -- this could be the additional money they may be rolled over in loans. And these banks may finally have started doing just that. FDIC report states loan balances rose by
$102 billion during the quarter — most of it going to the commercial and industrial borrowers.
"This quarter's return to loan growth is an encouraging development, but we will have to wait and see if the trend toward increased lending can be sustained," Acting FDIC Chairman Martin Gruenberg said.