FDIC-Insured Banks: Q3 Earnings Strong, Revenues Improve
Zacks Investment Research | Nov 29, 2016 10:34PM ET
Federal Deposit Insurance Corporation (FDIC)-insured commercial banks and savings institutions reported third-quarter 2016 earnings of $45.6 billion, up 12.9% year over year. Notably, community banks, constituting 93% of all FDIC-insured institutions, reported net income of $5.6 billion, up 11.8% year over year.
Banks’ earnings were driven by higher revenues, partially offset by rise in loan-loss provisions. Moreover, improved trading revenue was another positive. However, expenses increased.
Banks with assets worth more than $10 billion contributed a major part of the earnings in the said quarter. Though such banks constitute only 1.8% of the total number of U.S. banks, these accounted for approximately 80% of the industry’s earnings. Leading names in the space include Wells Fargo & Co. (NYSE:WFC) , Bank of America (NYSE:BAC) Corporation (NYSE:C) , Citigroup Inc. (NYSE:C) and U.S. Bancorp (NYSE:USB) .
Among the abovementioned banks, Wells Fargo, Citigroup and U.S. Bancorp carry a Zacks Rank #3 (Hold), while BofA carries a Zacks Rank #2 (Buy). You can see Zacks Investment Research
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