FDIC: Higher Rates Helping Banks
The FDIC's latest Quarterly Banking Profile" comments, "Net operating revenue of $192.2 billion, was $10 billion (5.5 percent) higher than fourth quarter 2016. Net interest income grew by $10.2 billion (8.5 percent), while noninterest income fell by $202.4 million (0.3 percent). More than four out of five banks (86.4 percent) reported higher net interest income from a year ago, as interest-bearing assets increased (up 4.4 percent) and the average NIM increased to 3.31 percent from 3.16 percent a year ago. This is the highest quarterly NIM for the industry since fourth quarter 2012. More than two out of three banks (70 percent) reported higher net interest margins than a year earlier." It adds, "Total deposits increased by $179.8 billion (1.4 percent) in the fourth quarter. Balances in domestic interest-bearing accounts rose by $153.7 billion (1.8 percent), and balances in noninterest-bearing accounts grew by $7.8 billion (0.2 percent). Domestic deposits in accounts larger than $250,000 increased by $159.6 billion (2.5 percent) from third quarter 2017. Nondeposit liabilities declined by $8.9 billion (0.4 percent),as other liabilities were down $29.3 billion (7.3 percent)." See also, new Federal Reserve Chair Jerome Powell's "Semiannual Monetary Policy Report to the Congress."
