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Bank and Thrift Earnings Just Below Record Level in Second Quarter
Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) earned net income of $31.2 billion in the second quarter of 2004, the second highest total ever. Although this marks the first time in six quarters that earnings failed to set a new record, profits for the second quarter surpassed the total for the same period in 2003 by $986 million (3.3 percent). The numbers are contained in the FDIC's Quarterly Banking Profile, which was released today.
"Second quarter results continue to reflect the core earnings strength of the banking industry," said FDIC Chairman Don Powell. "High earnings and improved credit quality allowed the industry to make a record volume of new loans to households and businesses."
Among the major findings in the second-quarter report:
The FDIC's Bank Insurance Fund (BIF) ended the quarter with a reserve ratio of 1.31 percent, down from 1.32 percent at the end of March. The reserve ratio of the Savings Association Insurance Fund (SAIF) also fell slightly, from 1.36 percent to 1.34 percent.
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Congress created the Federal Deposit Insurance Corporation in 1933 to restore public confidence in the nation's banking system. The FDIC insures deposits at the nation's 9,079 banks and savings associations and it promotes the safety and soundness of these institutions by identifying, monitoring and addressing risks to which they are exposed. The FDIC receives no federal tax dollars - insured financial institutions fund its operations.
FDIC press releases and other information are available on the Internet via the World Wide Web at www.fdic.gov and may also be obtained through the FDIC's Public Information Center (877-275-3342 or (703) 562-2200).
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