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FDIC Says Bank Profits Rose in Third Quarter, Warns of Credit Risk 

November 25, 2015

Jeff Bater, Bloomberg Law: Banking

Profits of banks insured by the Federal Deposit Insurance Corporation rose in the third quarter, but the regulator warned the industry to pay attention to growing credit risk.

In its quarterly report on earnings, the FDIC said its regulated banks and savings institutions reported aggregate net income of $40.4 billion, which was $1.9 billion, or 5.1 percent, higher than earnings during the same period a year earlier.

Most of the year-over-year improvement in industry earnings came from a decline in litigation expenses at a few large banks. Still, the FDIC report also showed nearly 60 percent of the 6,270 insured institutions reporting third-quarter financial results had year-over-year growth in quarterly earnings. Read more

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