U.S. Bank Earnings Up 21% as Loan Losses Decline, FDIC Says

U.S. banks had net income of $34.5 billion in the second quarter, increasing earnings 21 percent over the year-earlier period on improved asset quality, the Federal Deposit Insurance Corp. said.

Industry profits beat the prior year for a 12th straight quarter, with 89 percent of banks reporting gains even as earnings declined from $34.8 billion in the previous quarter, the FDIC said today in its Quarterly Banking Profile. Lenders set aside $14.2 billion for bad loans, and the $20.5 billion in charge-offs was the lowest quarterly total in more than four years.