The Great Recession Is Definitely Over for These 5 Banks
The old saying “laughing all the way to the bank” has taken on a whole new meaning in recent years. Despite major financial institutions nearly collapsing the entire system during the credit meltdown of yesteryear, bank profits are soaring to new multiyear highs.
The Great Recession is officially over for financial institutions. Commercial banks and savings institutions posted aggregate net income of $42.2 billion in the second quarter of 2013, according to a new report from the Federal Deposit Insurance Corporation. That represents an increase of 22.6 percent from $34.4 billion in profits a year earlier. Banks insured by the FDIC have registered a year-over-year increase in earnings for 16 consecutive quarters, and the average return on assets is at its highest level in more than six years.
FDIC Chairman Martin J. Gruenberg said: “The trends we have seen in recent quarters continued in the second quarter. Asset quality continues to recover, loan balances are trending up, fewer institutions are unprofitable, the number of problem banks is down, and the number of failures is significantly below levels of a year ago.”
Since stocks bottomed in early 2009, financials have been one of the best-performing sectors in the market. Here’s a look at how the biggest banks in the nation have done this year.