For Immediate Release
November 21, 2017
ABA Media Contact: Mike Townsend
(202) 663-5471
Follow us on Twitter: @ABABankers

ABA Statement on FDIC’s Third Quarter Bank Earnings Report

By James Chessen, ABA’s chief economist

“America’s banks continued their solid performance in the third quarter and remain well positioned to finance growth over the next year with strong capital, earnings and asset quality. 

“Bank capital continues to grow and now totals more than $1.95 trillion. This solid core of bank capital together with continued growth in earnings led to an expansion of dividend payments to investors. Managing interest rate risk remains a high priority, and banks are well prepared for the expected increase in short-term rates by the Federal Reserve in December.  
 
“The industry’s strong results came against the backdrop of the significant financial distress many businesses and individuals faced after the recent hurricanes. Banks continue to work closely with customers affected by the hurricanes to help them recover. The devastation did lead to a noticeable increase in past-due accounts, and spurred banks to take the conservative step of adding to their reserves for potential losses. We anticipate that will likely be reversed in the coming quarters as businesses facing hurricane damage regain their footing, hire back workers and begin to rebuild.

“In spite of the regulatory challenges that continue to drive industry consolidation, we anticipate America’s banks will continue their strong performance as the economy marches forward. Added stimulus from enacting tax reform would drive higher economic growth next year and beyond, although the growth effects will depend on the details of any final legislation. We are hopeful that the bipartisan effort in the Senate to pass financial regulatory reform will lead to commonsense changes that will allow banks to better serve their customers and help America’s economy grow even further.”

# # #

The American Bankers Association is the voice of the nation’s $17 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $13 trillion in deposits and extend more than $9 trillion in loans.