US banking sector sees nearly 80% income increase in Q1

By Ovunc Kutlu

ISTANBUL (AA) - The American banking sector saw almost an 80% increase in income in the first quarter of this year, the Federal Deposit Insurance Corporation (FDIC) said in a statement Wednesday.

The banking industry saw a total net income of $64.2 billion in January-March period, an increase of $28.4 billion, or 79.5%, from in the quarter before when it was approximately $35.8 billion, according to reports from 4,568 commercial banks and savings institutions insured by the FDIC.

"The banking industry continued to show resilience in the first quarter," said FDIC Chair Martin Gruenberg. "Net income rebounded, asset quality metrics remained generally favorable, and the industry’s liquidity was stable."

FDIC, which supplies deposit insurance to depositors in American commercial banks and savings banks, said the main reason of increase in net income was result of the large decline in non-interest expense, which was down $22.5 billion, or 13.3%.

"However, the banking industry still faces significant downside risks from the continued effects of inflation, volatility in market interest rates, and geopolitical uncertainty," said Gruenberg. "In addition, deterioration in certain loan portfolios, particularly office properties and credit cards, continues to warrant monitoring.”