Bank Profits Hit $40.4 Billion in Third Quarter, FDIC Says
- Gruenberg points to growing interest-rate and credit risks
- Lending in riskier categories warrants attention, agency says
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U.S. banks earned $40.4 billion in profits for the third quarter, a 5.1 percent increase from a year earlier, the Federal Deposit Insurance Corp. said Tuesday.
Lower non-interest expenses were the main reason for the higher earnings in the three-month period that ended Sept. 30, the FDIC said in its quarterly report on industry performance. Reductions in costs tied to litigation outweighed weaknesses in operating revenue at large banks, the agency said.